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Cracking out and gradeflation...
ElKevvo
Posts: 4,199 ✭✭✭✭✭
Hi,
A thought occured to me today while I was out working in my yard...yes, a coin related thought. I was reading through a grading guide a few weeks ago and happened to notice that there were several references about the observation that an EF coin today would have been considered a F a couple of decades ago etc. Not sure why all of the VF/XF coins I bought at the flea market when I was a kid are now G/VG but that is another issue. Anyway, since it seems that grading has gotten more liberal over the years, if I, as a collector, leave my coins in a TPG holder, I am thinking my heirs run the risk of being short changed when they go to sell the collection.
For example, let's say I have '09-S VBD cent in a top tier TPG 40 holder. If I live another 30 years the coin might then, on it's merits, be considered a 50 or a 53. But because it is in a holder saying 45 (albeit a 30 yr old holder but let's assume that knowledge is lost on my heirs) when the heir went to sell it they might be given 45 money...the buyer would then crack it out, have it regraded at the higher level, and sell it at the higher level.
Because I am a long term buy and hold collector for the most part, I am thinking my best bet is to crack out the coins, store them carefully, and then let them be evaluated for what they are when the time comes for that.
Is grade inflation still creeping along or have grading standards sort of solidified somewhat? Not from one TPG to another but from a hobbyist/ANA standpoint overall.
K
A thought occured to me today while I was out working in my yard...yes, a coin related thought. I was reading through a grading guide a few weeks ago and happened to notice that there were several references about the observation that an EF coin today would have been considered a F a couple of decades ago etc. Not sure why all of the VF/XF coins I bought at the flea market when I was a kid are now G/VG but that is another issue. Anyway, since it seems that grading has gotten more liberal over the years, if I, as a collector, leave my coins in a TPG holder, I am thinking my heirs run the risk of being short changed when they go to sell the collection.
For example, let's say I have '09-S VBD cent in a top tier TPG 40 holder. If I live another 30 years the coin might then, on it's merits, be considered a 50 or a 53. But because it is in a holder saying 45 (albeit a 30 yr old holder but let's assume that knowledge is lost on my heirs) when the heir went to sell it they might be given 45 money...the buyer would then crack it out, have it regraded at the higher level, and sell it at the higher level.
Because I am a long term buy and hold collector for the most part, I am thinking my best bet is to crack out the coins, store them carefully, and then let them be evaluated for what they are when the time comes for that.
Is grade inflation still creeping along or have grading standards sort of solidified somewhat? Not from one TPG to another but from a hobbyist/ANA standpoint overall.
K
ANA LM
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Comments
<< <i>I wouldn't crack them out, the slabs offer great protection if for no other reason to keep them slabbed. You can always have instructions for your heirs to offer them through a large auction house who will no doubt crack them out if it would lead to a profit. >>
A coin in a holder can always be cracked out at a later date, if it seems like a good move at that future date. To get a raw coin into a holder, costs money and time, and there may not always be time to get them regraded and then sold in an emergency. There is a lot that can go wrong with cracking them out today, with a plan for many decades in the future. There is no downside to keeping them in the TPG holders. There are several scenarios where cracking them out today turns out to be a very bad move. It is a no brainer--keep them in the holders unless there is a strong reason not to.
Grade inflation has been most pronounced in mint state grades. The point difference might only be half a point or a full point, but the price differences in the upper grades can be huge. For many circulated coins, it is more hit or miss than anything that can be observed as a group, and often times the price differences are not that big, going from F to VF.
If a person wants to put coins in an album it is a good idea to photograph the coin in the holder and save the inserts. This might help with resale value, especially on venues such as Ebay.