We often seek Certified coins for valuable items like diamonds, autographs, and memorabilia to enhance their worth through verified provenance and authenticity. Proper documentation can significantly boost an item's value, while its absence can drastically diminish it. This principle applies to coins as well. Certification can either be a wise investment or a costly mistake. Read on to discover when it makes sense to have your coins certified and when it might not be worth the expense.
Generally, the purpose of certifying coins is to enhance their value. Certified coins are typically more valuable, but the costs and other factors must be considered before proceeding with certification or professional grading. This article will examine different types of coins, providing guidance on when it is and isn't advisable to certify them and identifying situations where certification is cost-effective.
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Bullion Coins:
Bullion coins, such as American gold eagles and American silver eagles, are modern, government-issued coins designed primarily for investment purposes. These coins are among the most popular silver bullion coins in the U.S. These coins typically trade close to their intrinsic precious metals value and are not considered rare.
For most collectors and investors, the benefits of certifying bullion coins do not justify the expense. Certification, which involves professional grading by a third-party grading service (TPGS), can enhance a silver bullion coin's market value. However, coins that receive a Mint State (MS) 69 grade—indicating they are in high-end uncirculated condition but not perfect—usually sell at only slightly higher prices than their raw counterparts. Coins that achieve a perfect MS70 grade can command higher prices, but this additional value must be weighed against the certification costs.
Proof Coins: Certification Benefits and Considerations
Proof coins, particularly older types or specimen proofs issued before 1933, can greatly benefit from certification. These coins, especially if they fall between two grades ("tweeners"), can see a significant increase in value when certified. However, this advantage does not usually extend to modern-proof coins unless they are rare, limited edition, or commemorative.
Many collectors and investors have a strong preference for proof of gold bullion and silver American eagles in their original government packaging (OGP). This preference is driven by a few key factors. Firstly, these coins are often presented in an attractive display case accompanied by a certificate of authenticity and box, enhancing their appeal. Secondly, for proof gold and silver eagles to be IRA-eligible, they must remain in their original packaging.
Given these considerations, proof gold and silver eagles with a rating of 69—just one step below perfect—tend to sell for less than their counterparts still in OGP. While a perfect 70 grade can elevate a coin's value above the OGP price, the market for these coins is somewhat limited due to the IRA eligibility requirement.
There are exceptions to this general rule. For example, the 1995-W proof silver eagle, which was only available as part of a 1995 five-coin 10th-anniversary proof eagle set, was produced in a limited quantity of just 30,000 coins. This coin is common in a 69 grade, but far fewer exist in a perfect 70 grade. Consequently, 1995-W-proof silver eagles in a 70 grade can fetch prices exceeding $10,000.
Type Coins: Certification Considerations and Value
Type coins encompass a variety of coins, but for this discussion, we'll focus on those produced before 1916. This includes Barber, Seated Liberty, Capped Bust, Draped Bust, and Flowing Hair coins, along with Morgan and Peace silver dollars, among others.
Type coins also include obsolete coins, which are no longer in general circulation. Examples are Two cent pieces, Large Cents, Three Cent Half Dimes, Pieces and Twenty Cent Pieces. These obsolete coins were often produced in large quantities, though certain mints in specific years produced fewer, making some more valuable.
Most types of coins we encounter show moderate to heavy wear, which significantly impacts their value. While these coins often sell at a premium above their metal value, certifying them usually isn't worth the expense. However, there are exceptions. Coins produced in lower quantities, coins from the Carson City Mint, and coins in high-end condition (typically Almost Circulated or better) can benefit from certification.
Certification can be beneficial for popular and collectible Morgan and Peace silver dollars. Our Rare Coin Guide highlights valuable Morgan and Peace silver dollars produced in lower quantities that may be worth submitting for grading. These coins, due to their rarity and condition, can see a significant increase in value when certified.
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Rare Coins: The Value of Certification
Rare coins, produced in significantly lower quantities than their counterparts, are highly sought after by investors and collectors. These coins either had a low mintage in general, typically numbering in the five figures or less, or were rare in comparison to other coins of the same type and denomination.
Rare coins like the 1889-CC Morgan Dollar benefit significantly from professional grading, particularly when their condition is high. Of the aforementioned coins, the 1916-D Mercury dime stands out as the most likely to benefit from certification. Most of these dimes grade out in About Good condition, a lower grade, and their value begins to increase substantially at the Very Good level or above.
Truly rare coins, especially those produced before 1800 and in high-end condition, are prime candidates for certification. This category includes some of the lowest minted Morgan silver dollars, such as the 1889-CC, the 1893-S, and the 1895-P. Many of these coins were either melted down or counterfeited, so having a certified example provides assurance of authenticity and boosts the buyer's confidence.
Conclusion:
Though the concept of having coins certified may appear beneficial, you also need to consider the cost associated with it. It is not worthwhile to have the majority of bullion coins certified. Exceptions can be made for some early-issued American Silver Eagles or coins with sentimental value. However, in most cases, the benefits do not outweigh the costs.
Many collectors and investors favor proof coins in their original government packaging over certified ones. However, exceptions can be made for coins that achieve a perfect 70 grade or are rare, limited-edition proofs in high condition.
Frequently Asked Questions:
1. Are certified coins worth the cost?
Certification can significantly enhance a coin's value, particularly for rare coins, older proof coins, and certain type coins. However, for bullion coins, the costs of certification may not be justified as they usually trade close to their intrinsic precious metals value.
2. Should I certify my bullion coins?
For most bullion coins, such as American gold eagles and silver eagles, certification is not typically cost-effective unless the coin achieves a perfect MS70 grade. Even then, the added value must be weighed against the certification expense.
3. When is it beneficial to certify proof coins?
Certification is beneficial for older proof coins, especially those issued before 1933, or for rare, limited-edition modern proofs in perfect condition. However, many collectors prefer proof coins in their original government packaging.
4. What type of coins should be certified?
Rare coins, such as the 1889-CC Morgan Dollar and the 1916-D Mercury dime, are prime candidates for certification due to their low mintage and high collector demand. Certification ensures authenticity and can significantly increase their market value.
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