Grades and Prices
Grade vs. Price
Of the various considerations which help to determine the
value of a coin, the grade of the piece is one of the most important factors.
For many in the coin field, particularly investors and buyers without knowledge,
the grade of a given piece seems to be the only factor.
I quote bid prices from the September 10, 1993 issue of the
Coin Dealer Newsletter to show the vast differences in price a coin can have,
depending upon its grade:
- 1896-O Morgan dollar, raw (unslabbed), sight-seen bid
prices from the "Coin Dealer Newsletter": VG-8 $7.25, F-12 $8.50,
VF-20 $9, EF-40 $12, AU-50 $75, MS-60 $525, MS-63 $4,400, MS-64 $10,500, MS-65
$28,000.
An 1896-O dollar can be worth $7.25 in VG-8 grade and
$28,000 in MS-65 preservation. Stated more dramatically, an MS-65 coin is bid
for 3,862 times as much as a VG-8! In the higher echelons, a small difference in
grade can mean a lot of money. If an MS-64 coin is bid $10,500 and an MS-65 coin
is bid $28,000, you can see if someone buys a high-end MS-64 and can have it
reslabbed as an MS-65, this is a better way to make money than by printing it!
Incidentally, these are "bid" prices as noted; selling prices are apt
to be substantially higher, if for premium quality coins.
- 1923-S Monroe commemorative half dollar, raw (unslabbed)
bid prices from the Coin Dealer Newsletter: EF-AU (EF-45 to AU-50) $31,
MS-60 $35, MS-63 $100, MS-64 $325, MS-65 $2,500.
For the astute buyer, you, an MS-64 Monroe half dollar
represents a much better buy at $325 than an MS-65 at $2,500. Note: Once again,
these are bid prices; selling prices will be higher, but the illustration is the
same. For my money, I would rather invest in eight specimens of MS-64 coins, for
a total expenditure of $2,600 than a single MS-65 for $2,500. I challenge any
reader to dispute the logic of my statement. If money is absolutely no
objection, and you have your mind set on outdoing everyone else, then by all
means buy an MS-65 for $2,500. However, few readers of this CD-ROM text will be
in this category.
