PCGS The Standart for the Rare Coin Industry

Obviously, a tiny difference in grade can mean a tremendous difference in value. Even within a numerical category, low-end unattractive coins can be worth less than quoted figures, and high-end pieces with aesthetic appeal can be worth considerably more. However, the prices just quoted illustrate the basic concept that the higher the coin grade, the higher the price.

When I wrote the introduction to the book, Official ANA Grading Standards for U.S. Coins, I inserted this paragraph:

"A note concerning market values: it is important to know that grade is only a part of market valuation. Two silver dollars can each be in MS-65 grade but can differ widely in value. The average specimen of a certain date might be worth, for example, $800, while a weakly struck piece with an unappealing surface, but still MS-65, might be worth $400, and a sharply struck coin with beautiful toning might worth $1,000 or more. It is important not to rely on grading alone to determine the value of a coin, for the stated grade of a coin - even if determined by experienced professionals or by grading services - is only part of the story."

Even if they read grading books from cover to cover and have received lots of advice, some people will never master the techniques of grading coins. There are many professional numismatists who do not know how to grade coins. A few years ago a leading marketer of coins to the public was taken to task for selling coins which were believed to be overgraded in many instances. His defense was that he bought coins at stated grades from well-known dealers, and how was he to know that they were overgraded?

Often people try to become professionals without knowledge of grading, authenticity, or anything else. Mike Gumpel, advertising manager of CoinAge magazine, told of attending a convention and seeing a dealer who apparently knew nothing at all about coins, didn't even have a magnifying glass, and was equipped only with a computer! This "professional" traded over 100 coins valued in excess of $50,000. Is this the blind leading the blind? One cannot help but feel sorry for this dealer's customers, for if the dealer knows nothing about such questions as authenticity, toning, cleaning, sharpness or weakness in strike, etc., he and his clients are all buying pigs in pokes.

My advice about high-grade Mint State and Proof examples of coins which are not rarities: Let investors pay today's high prices for common coins. You, as an astute collector, can get a much better value with MS-64 and Proof-64 coins or pieces in even lower grades.