Are Certified Coins Worth The Expense? An Evaluation By Type of CoinAt the time of original publication, the article described the following:

People often want valuable possessions certified, particularly diamonds, autographs, and memorabilia. Documentation of provenance, chain of custody, grade, authenticity, and an item’s history can meaningfully increase its value. Conversely, missing or inadequate documentation can sharply reduce an item’s value and may make it nearly worthless. This article explains how coin certification can, depending on the circumstances, be either a worthwhile investment or an unnecessary expense.

Against that backdrop, Atlanta Gold & Coin received several requests each day from callers and customers who wanted items certified. For coins, certification generally meant professional grading through a third-party grading service (TPGS). Although many TPGS companies existed, the four most widely recognized and accepted were PCGS, NGC, ANACS, and ICG. Among those four, PCGS and NGC were generally viewed as standing apart from the others.

In most situations, coins were certified in order to increase their value. Certification commonly made a coin more valuable, but the grading expense and other considerations needed to be weighed before coins were submitted or professionally graded. This article reviews, by coin category, when certification could be considered, when it generally should not be, and when the cost could make practical sense.

Bullion Coins

Bullion coins are modern coins issued by governments primarily for investment. In the United States, the two most popular examples were American gold eagles and American silver eagles. The US Mint produced hundreds of thousands of gold eagles and tens of millions of silver eagles each year. These pieces generally traded near the value of their underlying precious metals and were not rare.

For the general public, the added value from certifying these coins usually did not justify the cost. Coins graded Mint State (MS) 69, meaning they were high-end uncirculated examples but not perfect, brought modestly higher prices than raw coins. Higher prices were generally realized by coins receiving the perfect MS70 grade.

By coin and production year, many modern eagle coins received a 70 grade. For example, since 2010, more than 50% of silver eagles submitted to PCGS received a 70 grade.

The substantial quantity of recently produced silver eagles that received a 70 grade did not make them rare in any sense. At the time of publication, Atlanta Gold & Coin’s recommendation was that holders avoid paying to submit common-date, modern-issued silver eagles from the preceding decade for certification.

Proof Coins

Proof coins present an interesting distinction. Older type proofs or specimen proof coins issued before 1933 could benefit considerably from certification, especially when a coin was a “tweener”, meaning it fell between two grades. The same was generally not true for modern proofs unless they were rare, limited-edition, or commemorative coins.

Because American eagles were discussed earlier, they also provide a useful example for proof coins. Many collectors and investors favored proof gold American eagles and proof silver American eagles when they remained in their original government packaging.

There were two primary reasons for that preference. First, the coins came in an appealing display case, accompanied by a certificate of authenticity and box, creating an attractive presentation. Second, proof gold and silver eagles had to retain their original packaging to be IRA-eligible.

In light of those factors, most proof gold and silver eagles graded 69, a rating one level below perfect, sold for less than proof coins in original government packaging (OGP). A 70 grade could raise a coin’s value above the OGP price, though the market was again narrower because of the IRA-eligibility consideration.

There were exceptions, including the 1995-W proof silver eagle. It was available only within a 1995 5-coin 10th-anniversary proof eagle set and had a limited production of 30,000 coins. The coin was very common at a 69 grade, while comparatively few examples reached a 70 grade. Consequently, such coins sold for more than $10,000.

The article’s conclusion was that submitting proof coins for certification did not make sense in most cases. At the time of publication, it noted that buyers could consider acquiring proof coins already certified through a coin dealer, particularly if they preferred certified pieces to raw coins.

Type Coins

Type coins can be defined in several ways because many coin types exist. For this discussion, the term was limited to coins produced before 1916. That group included Barber, Seated Liberty, Capped Bust, Draped Bust, and Flowing Hair coins, along with Morgan and Peace silver dollars and several additional series.

Type coins also included obsolete issues: coins no longer produced or used in regular circulation. Examples included Large Cents, Two Cent pieces, Three Cent Pieces, Half Dimes, and Twenty Cent Pieces. These obsolete coins were often made in larger quantities, although particular mints produced lower numbers in certain individual years.

Most type coins encountered had moderate or substantial wear, which could significantly influence their value. Although most sold at a premium over underlying metal value, paying for certification was usually not worthwhile. As with the other coin categories discussed, exceptions existed. They commonly involved lower-production coins, coins from the Carson City Mint, and pieces in high-end condition, generally Almost Circulated or better.

An additional exception applied to certain popular, collectible Morgan and Peace silver dollars. Atlanta Gold & Coin had published a Rare Coin Guide that identified some more valuable Morgan and Peace dollars, among other coins. Those were lower-production pieces that could be candidates for submission.

In summary, the article advised against certifying common-date type coins in average condition, while recognizing that exceptions remained. In particular, lower-mintage coins and coins in higher-end condition could warrant consideration.

Rare Coins

Rare coins were coins made in lower quantities than comparable issues and sought by both investors and collectors. Some had low mintages overall, typically five figures or fewer, while others were rare when compared with the number produced for the same denomination and coin type.

For instance, four of the most popular collector coins in the industry included the 1909-s vdb Lincoln penny, the 1916-d Mercury dime, the 1932-d Washington quarter, and the 1921 Walking Liberty half dollar. Each was made in quantities of 100,000 or more, yet those mintages were dwarfed by counterparts produced in millions, tens of millions, or still greater numbers.

Professional grading could help the value of some of these coins, but usually only when their grade or condition was sufficiently high. Of the four examples above, the 1916-d was the one most likely to benefit from professional grading. Most examples graded About Good, a lower condition grade. Values generally began rising substantially at Very Good or above.

On their own, genuinely rare coins were the category most likely to benefit from certification or professional grading. This included most U.S. coins made before 1800, particularly higher-end examples, plus three of the lowest-mintage Morgan silver dollars: the 1889-cc, 1893-s, and 1895-p Morgan dollars. One reason was that many of these coins were melted or were counterfeited, so a certified example could help reassure a buyer.

The article concluded that, compared with the other categories covered, more rare coins were suitable candidates for certification. At the time of publication, Atlanta Gold & Coin reported submitting more rare coins for certification than coins from any other category.

Conclusion

Although coin certification can sound appealing initially, its cost needed careful consideration. Shipping and insurance costs in both directions, along with turnaround time, were also factors to weigh.

Most bullion coins were not worth certifying. Exceptions could apply to certain earlier-issued American silver eagles or coins with sentimental value, but in most cases the added benefit did not justify the cost.

Many collectors and investors favored proof coins in original government packaging instead of certified holders. Exceptions included coins graded 70 or exceptionally limited-edition proof coins that achieved a high grade.

Type coins generally were not suitable for submission unless they had lower mintages or were in higher-end condition. The original article referenced Atlanta Gold & Coin’s Rare Coin Guide to help readers determine when grading might be worthwhile.

Finally, rare coins were the strongest candidates for submission. These were coins made in lower quantities or at mints with limited operating lives or production runs. At the time of publication, Atlanta Gold & Coin reported submitting more of these coins for certification each year than all other categories combined.

When this article was originally published, Atlanta Gold & Coin Buyers was described as having the knowledge and expertise needed to determine which coins merited certification submission. The business reported that, each year, it sent only a fraction of one percent of the coins it purchased for professional grading. Coins appropriate for submission were therefore uncommon, though they were submitted when warranted. At the time of publication, readers were invited to contact the business to buy or sell certified coins to a coin dealer described as among the industry’s most knowledgeable.