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All Posts Tagged With: "Coin Collection"

Pricing Problem Coins !

By Doug Winter www.Raregoldcoins.com CoinLink Content Partner

I’ve discussed many times the process in which how nice coins are assigned price levels. But how are problem coins valued? This is an interesting question and one which is becoming a bit easier to answer since NCS coins have become a well-accepted part of numismatics.

(Before I begin, I should state here that NCS or Numismatic Conservation Services is a division of NGC that certifies and encapsulates “problem coins” which NGC does not see fit to put in their regular holders. This includes coins that are harshly cleaned, polished, heavily scratched, rim filed, etc. NCS only uses adjectival grades—i.e., they would call a coin “AU details” as opposed to “AU55 details.”)

The reason why non-problem coins are easier to value than problem coins is, well, because they don’t have problems. There is a greater degree of consistency of appearance between an 1830 half eagle in PCGS AU55 (or NGC AU55) than there is with this same issue when it has the details of an AU55 but it has been cleaned.

Let me explain what I mean by this. If you were to call me up and offer me an 1830 half eagle in PCGS AU55, I would have a decent idea of what to expect. I’m figuring that it has light wear, a decent amount of remaining luster, maybe a few scattered marks in the fields and probably a pretty good overall appearance. But if you call me an offer me an 1830 half eagle in an NCS holder that states the coin has “AU details” but has been “cleaned,” I’m not sure what to expect. Has it been lightly cleaned or harshly cleaned? Does it have an acceptable appearance or does it look overly shiny from having been polished or perhaps whizzed?

From my experience with viewing NCS coins, there is a very wide range of coins in these holders.

I’ve seen coins that NCS has called “cleaned” that look pretty acceptable to me; not very different, in fact, from coins encapsulated by both NGC and PCGS. I’ve also seen coins placed in NCS holders that had planchet flaws or mint-made surface that, in my opinion, could just as easily be in “normal” NGC or PCGS holders.

But back to cleaned coins and how to value them. As a general rule of thumb, I think that if a coin has been lightly cleaned it is worth around half of what a non-cleaned example would be worth. The NGC or PCGS AU55 1830 half eagle that I mentioned above is a $60,000 coin if it has a decent, original appearance. In an NCS “AU details—cleaned” holder it’s more likely worth $30,000 or so. And if it’s a very harshly cleaned AU coin with some damage as well it is more likely worth in the area of $15,000-20,000. (more…)

Another Gold Record Set; But Generic Gold Coins Still Lag

By Steve Roach – First published in the October 4, 2010, issue of Coin World

With all this interest in gold and the mainstream attention it is getting, one would think that generic gold coins would be blazing hot. Yet, many of the most popular issues trade at heavy discounts to earlier in the year when gold was trading at the $1,100 an ounce level.

The coins that investors typically flock to during bullion run-ups, Saint Gaudens $20 double eagles and Coronet double eagles, are trading at substantial discounts to what they were trading for at the start of the year.

For example, one major wholesale market maker at the close of 2009 was selling certified Saint Gaudens double eagles for $1,660 in Mint State 62, $1,820 in MS-63, $2,070 in MS-64 and $2,580 in MS-65. Today, that same dealer is selling the coins at $1,550, $1,590, $1,660 and $2,080 in the same grades respectively.

Other gold series are experiencing declines at the wholesale generic level, as market makers are not taking large positions in these coins, but $10 eagles and double eagles have suffered the worst declines.

Earlier this year one dealer was selling Indian Head eagles in MS-64 for $2,470; today the same dealer is selling them at $1,580.

In general, the only generic gold coins that have gained value this year are circulated coins, which are dependent on bullion prices for value.

In light of rapidly increasing gold values, one wonders how much longer these discounts will persist.

The recent announcement that the Mint intends to release Proof 2010-W American Eagle gold coins has put a further chill on the market for earlier Proof American Eagle gold coins.

In the Aug. 30 Market Analysis, I reported that major market-maker buy prices for the earlier coins with original Mint packaging had fallen to $1,750 an ounce, down from $2,000 an ounce.

As of Sept. 16, many of the market-makers have dropped out of the market and the few who remain are buying the earlier coins for as low as $1,575 an ounce, with the highest price being a small order at $1,600 an ounce.

Visit Steve’s Rare Coin Market Report Blog at http://coinmarketreport.blogspot.com/