Cost of Grading Coins Not Considered in Pricing?

BigDowgie · June 6, 2014 10:58PM

I know market forces dictate the price of most everything, but sometimes I wonder why some graded variety coin values don't account for the cost of grading the coin?

There are some varieties in most all of the series that are priced less than it cost to have it graded and attributed. To grade, attribute, insure and ship a coin can cost $50 to $75 or more. I'm just saying!

crypto79 · June 6, 2014 11:02PM

Of course but that doesn't mean someone pays it. Many stay unattributed until the cost ratio becomes favorable.

Casman · June 6, 2014 11:11PM

Are you referring to the price guide...If so ignore it.

bigjpst · June 6, 2014 11:32PM

I think a lot of collectors don't really care what the cost of the grading is. It is just another expense of collecting that they don't expect to get a return on. I know some collectors who used the grading companies to verify their grading or attribution skills as they learned. Many of the people who collect lower value items never expect any return on their investment. They like it, they buy it. They want it in a holder that pinpoints what it is, they pay for it.

291fifth · June 6, 2014 11:32PM

Supply and demand dictate the prices. Many collectors who love their specialty too much waste a lot of money on attribution, authentication and grading of coins that just don't have widespread appeal.

scotty1419 · June 6, 2014 11:38PM

So basically we've identified third party grading for the general collecting population as something nice to have, something one may pay for upfront, but something that does not add monetary value (exceptions of course), and something a buyer wouldn't likely pay much extra for...

bronco2078 · June 6, 2014 11:43PM

<< So basically we've identified third party grading for the general collecting population as something nice to have, something one may pay for upfront, but something that does not add monetary value (exceptions of course), and something a buyer wouldn't likely pay much extra for... >>

yes , its pointless for 99% of what I collect. I won't pay extra for a coin in a slab , I won't send any coins in unless I think they have a shot at being some rare variety.

LindeDad · June 6, 2014 11:43PM

It well get added somewhere don't think it's not free or nobody pays for it.

lcoopie · June 6, 2014 11:50PM

If I understand you correctly, I think some of these were sent for grading in hopes of a higher grade, paid the fees, and don't get the grades that justify the costs of grading.
Yet they are graded nonetheless.

keets · June 6, 2014 11:57PM

Many collectors who love their specialty too much waste a lot of money on attribution, authentication and grading of coins that just don't have widespread appeal.

everyone here should repeat this three times before they go to sleep tonight.

1tommy · June 7, 2014 12:49AM

My most recent find raw, only 4 coins graded and 1 higher. This coin cost me 6 bucks off ebay and than cost me 94 dollars with shipping to get the Variety DDO 102 Price guide is at 55 dollars

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Now Yesterday I came acorss this coin on Ebay and figured finding one raw and paying for the grading and CAC it was just cheaper to by it already holdered. 200 Bucks price guide 100

There are many coins in my set that cost me more to grade than the price guide but I know the guide is Way off on most of these. But I do wish our host would lower the fee for Varieties.

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Enjoy tom

RedTiger · June 7, 2014 12:50AM

<< I know market forces dictate the price of most everything, but sometimes I wonder why some graded variety coin values don't account for the cost of grading the coin?

There are some varieties in most all of the series that are priced less than it cost to have it graded and attributed. To grade, attribute, insure and ship a coin can cost $50 to $75 or more. I'm just saying! >>

It is chicken and egg. If a collector knows the market value is below these costs why is he/she sending it in for grading? Just because something gets graded does that mean another collector will pay much more for it? Let's take a $25 value variety, who in their right mind is going to pay $60 for it, just because it is attributed and slabbed? I could see someone paying a few bucks more but not double or triple. The question to me boils down to: who is that stupid? Maybe the person that sent it in for grading, but if they can't find another person as dumb as they are, they ain't going to be able to sell and get their costs back. If a person just wants the attribution on the slab and is willing to pay for it, that's fine, but the thread supposes something else.

For some common coins such as common date MS63/64 Morgans (non-varieties), the bulk grading rate used to be lower, and there are still many thousands of those graded coins out there from those days. Bulk rates are still lower than single rates, again for non-varieties, though no where near as low as they were back in the day.

BigDowgie · June 7, 2014 3:21AM

Thanks for your thoughts! It would be nice to get a little break from our host on attribution fees. I fall in the camp of "I don't give a crap, if I like it, I'll do it!" I'm sort of glad our host does not attribute any variety or I would be in big trouble with my wife attributing all of these!

F.I.B. All Variety Set

291fifth · June 7, 2014 3:39AM

<< Thanks for your thoughts! It would be nice to get a little break from our host on attribution fees. I fall in the camp of "I don't give a crap, if I like it, I'll do it!" I'm sort of glad our host does not attribute any variety or I would be in big trouble with my wife attributing all of these!

F.I.B. All Variety Set >>

Attributions take time and time is money. There is really no reason to expect a break. It's business.

MsMorrisine · June 7, 2014 3:43AM

Ugh.

If the question is about guide being below grading fees, well, rules prevent comment.

BillJones · June 7, 2014 3:57AM

Look at it this way. If you have a significant coin, it raw (not graded), it will be almost impossible to get a top or even a good price for it. This also applies to "off brand" certification holders to varying extents.

On the other hand if you have a junk coin, unless it is among the poorest known, which has a special value to some collectors, getting certified won't help its value much if at all. In other words, for an important coin, certification is almost a given and is built into the price.

BigDowgie · June 7, 2014 4:25AM

Hey, someday when all of these are in the Cherry Pickers Guide and our host starts attributing them, I'll do ok!!!

pcunix · June 7, 2014 5:39AM

<< Let's take a $25 value variety, who in their right mind is going to pay $60 for it, just because it is attributed and slabbed? I could see someone paying a few bucks more but not double or triple. The question to me boils down to: who is that stupid? Maybe the person that sent it in for grading, but if they can't find another person as dumb as they are, they ain't going to be able to sell and get their costs back. >>

Why do you assume we care about getting costs back? I'm not planning on selling anything, ever. My kids will inherit it all and they may not sell it either. As they have no children, who knows where it will all go eventually? Whoever it us, my kids or some cousin, their cost is nothing and having it slabbed will hopefully help them sell it if they want to.

Cost of Grading Coins Not Considered in Pricing?

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