Expert: PAPAJACK - 9/18/2007

Question
Hello Papajack,

My family has recently had a collection of Morgan silver dollars with a date range of 1878 through 1921, "graded" & appraised with the intent of eventually liquidating this particular collection.  The collection has been in the family since the early 1960's, and consists of about 50 coins.  

Many of the coins have been assigned  AU & MS gradings, One coin in particular an 1891 CC grade of MS 65.  

My first question is at what level would you consider having a coin certified? One collector recommended certifying anything with a value in excess of $500.00.  I am curious if this sounds like an accurate statement?
Also do you favor one grading service over another?

The second question: Do you have suggestions for finding potential buyer's?  We have considered Ebay for selling some of the coins, but haven't made a definite decision.   

Thanks in advance for your advice.

Respectfully,

Susan

Answer
Hello Susan,                                      

Part 1)
Certification by a Third Party Company is wise when you have a rare coin and of course the certification price is warranted by it’s the coins value.
It is just an opinion, I probably would not send a coin to be authenticated, graded and encapsulated unless its value is around $200. And then only if I was selling it sight un-seen at auction or on-line.
Most common date Morgan dollars do not sell for over $100 in grade 62/63. For example a Mint State grade 64 1882 with the P, O or S mint mark sell from $50 to $70 each and the grading may cost $20 each. You may have to wait a long time for the coin to be valued over $90 unless you already have a buyer for that price.
Whereas an 1882-CC minted dollar in grade 64 is harder to find (in grade 64 and higher) would easily sell for $240 and more.

So it is an accurate statement "certifying anything with a value in excess of $500.00."  
The biggest reason for truly rare coins being graded is the authentication and encapsulation of the coin. Making sure it is real and not altered, that is was never cleaned and of course graded for posterity and put in an inert holder so it will stay that way.

You can try using Professional Coin Grading Service (PCGS since they bring the highest selling price) "with your 1891 CC grade of MS 65" it will show you the steps of what happens since it is worth at least $300 in grade mint state-60. If it does get a grade of 65 you will get over $4000 and it would be worth getting it graded.

When it comes back with it grade (providing it was never cleaned) compare it with your other coins for wear. Maybe you will want to have others professionally graded.

Part 2)
I do favor the big three Graders available. In order of resale prices of highest to lowest you have PCGS, NGC, ANACS and ICG.
There are some others that do not guarantee the grade or the authenticity of the coin.
A drawback is most of these companies will not grade or encapsulate a coin if there is any problem; they charge you and sent it back with a note.  
I do know ANACS will always process your coins and if there is a problem they note it on the label and give it a NET-Grade.

Part 3)
As for selling the coins if this is your decision, you need to figure out what price you will want for each or the whole lot.
On Line Auctions do get high prices many times more than the coin sells for from a dealer.
Ebay is fine and often gives satisfactory prices. You must set the starting bid and accurately describe the coin and its grade and always include a photo of both sides for best results. You will pay a posting fee and if it sells a final value fee. You can ask the buyer to pay a shipping and insurance fee.
There are a few on line auction houses for just coins that do the work for you and get many collectors and dealers bidding against each other that can make up for their higher than normal sellers fees. They deal mainly in coins that are professionally graded and will help you get yours graded as well.  

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If you have any other questions feel free to ask.
Thank You and Good Luck

PapaJack

http://www.icgcoin.com/
http://www.anacs.com/
http://www.ngccoin.com/
http://www.pcgs.com/