Is Professional Coin Grading Through NGC & PCGS Worth the Cost?
Whether to submit coins for grading is often the central question. When this article was originally published, Atlanta Gold & Coin received a call from a man who had inherited a large, varied coin collection from his grandfather. He explained that he planned to send the entire group to NGC or PCGS for certification and grading. He had devoted considerable time to researching the coins and had noticed substantial differences in prices between certified pieces and raw, ungraded examples.
That price difference can occur in certain situations, but the added value from professional grading or certification often does not cover the time and cost involved.
At the time of publication, Atlanta Gold & Coin purchased hundreds of thousands of coins annually and submitted fewer than 1% of them for certification. That experience informed its view of when a coin has enough added value to justify certification.
The original article invited readers to learn about coin types frequently found in collections and which pieces might warrant submission to NGC or PCGS for certification.
Common-Date Coins
Most coins evaluated as part of an estate coin collection are usually common-date coins. In practical terms, a substantial number were minted in that year, making them less scarce and generally more affordable.
No fixed production figure defines every common-date coin, but coins minted in quantities above 1 million commonly trade as standard, widely available issues.
Although the term common date can suggest limited value, this isn’t always the case. Some common-date coins can still be quite valuable, particularly when they have become obsolete and no longer circulate generally, or when they are older silver dollars, meaning those minted before 1873.
For common-date coins in average condition, the expense of PCGS or NGC grading and certification is usually not justified. Common-date pieces in exceptional condition, however, may call for a different analysis.
Uncirculated Common-Date Coins
Common-date coins in uncirculated condition should be examined when certification is being considered. When the article was published, most uncirculated coins encountered were more recently issued pieces, including Lincoln Memorial cents, Jefferson nickels, Roosevelt dimes, Washington quarters, Kennedy half dollars, and modern-issue silver dollars.
When this article was originally published, these were coins still used in ordinary circulation.
In many instances, the possible benefit of certifying these coins does not exceed the expense. Uncirculated coins that predate the pieces circulating when this article was published, however, may justify certification. Examples include Indian Head pennies, Buffalo nickels, Mercury dimes, Standing Liberty quarters, Franklin half dollars, and Walking Liberty halves, which may gain enough value to make certification worthwhile.
A similar principle applies to “type coins.” Type coins have several definitions, but the original article focused on coins minted in 1916 and earlier.
Type Coins
As noted earlier, type coins are older U.S. coins not often found in circulation, including issues produced before 1916. Most type coins found in estate collections are common-date examples in average condition. Coin collecting grew popular in the early 20th century, when collectors commonly removed coins from circulation, placed them in albums, and tried to build complete sets.
For instance, Indian Head penny albums were a frequent feature of many estate coin collections evaluated when this article was published.
Because most type coins are common-date issues, they generally lack major value and, in many cases, do not merit the cost of certification.
Higher-end condition changes that general conclusion. Type coins graded AU, or Almost Uncirculated, and above are more likely to be certification candidates, though this is not universally true.
Other potential NGC or PCGS certification candidates include older coins from the mid-1800’s or earlier, obsolete coinage, and silver dollars minted before 1873. Their year and condition may make professional grading beneficial. Although original mintage totals do not always classify these coins as rare, many were melted in 1918 after passage of the Pittman Act and can be somewhat scarce. In addition, extensive circulation left many without the sharp details associated with quality examples.
Rare or Key-Date Coins
Rare, low-mintage, and key-date coins—typically issues with mintages below one million—should be reviewed individually to see whether submission to a third-party grading service, or TPGS, such as NGC or PCGS is appropriate. Even very low-mintage key-date coins with production below 100,000 can benefit from certification while circulated.
Coins that are frequently counterfeited may also become more marketable once certified. Examples include 1856 Flying Eagle cents, 1943 copper pennies, 1877 Indian Head pennies, and three-legged Buffalo nickels, among others. These coins can be difficult to locate in any condition and remain sought by collectors assembling complete sets.
In almost every case, key date coins in uncirculated condition warrant professional grading. At the time of publication, submitting several coins together could lower the overall cost per coin after shipping and insurance were considered. Graded key-date coins also reduce subjectivity about grade and confirm authenticity. In some instances, a difference of one or two grades can produce a substantial change in value. The original article linked to this article, which illustrated coins worth significantly more with a one- or two-grade difference.
Altered Coins
For readers who, after reviewing these guidelines, believed they had coins to submit to NGC or PCGS, the original article recommended inspecting them first for alteration or damage, including spots, toning, and excessive wear. Atlanta Gold & Coin had also written an article a few years earlier about factors affecting silver-dollar value, principles that can apply to nearly any coin.
Other concerns not specifically covered in the earlier articles included environmental damage resulting from improperly
stored coins, PVC damage caused by chemical breakdown in a plastic coin holder, and damage from using coins as jewelry, including edge scratches and dents from prongs. The original article recommended closely examining both sides with a triplet loupe for these issues and for concerns covered in the previously mentioned article. Atlanta Gold & Coin’s preferred loupe at publication was a Belomo triplet 10x magnifier, although similar options existed in the marketplace.
Damaged or altered coins may be unsuitable for grading. A grading fee may still be paid, yet NGC or PCGS may not encapsulate the coin. Other coins may be encapsulated without receiving a straight grade. Rather than a letter-and-number grade, they can receive a details grade or qualifier. For example, an issue-free almost uncirculated, or AU, coin might receive a grade such as “AU55” whereas a cleaned coin that otherwise is in AU condition may receive an “AU Details” grade. A details grade can lower a coin’s value by several letter grades, or even more.
Bottom Line
Ultimately, the question is whether submission could produce a positive return on investment, or ROI. The original article advised considering grading, shipping, insurance, turnaround time, and the possibility that a coin might not grade as expected before deciding.
At the time of publication, anyone who was not an NGC or PCGS member needed either a paid membership or an authorized coin dealer to submit coins on their behalf. The original article noted that many coin dealers had moved away from customer submissions because of liability concerns, which could make locating a dealer that offered this service difficult.
Given the various fees and expenses, the article stated that a professionally graded coin generally needed to rise in value by $50 or more simply to break even. That was why Atlanta Gold & Coin submitted only a small share of purchased coins for third-party grading.
In Summary
This information was shared not to discourage certification, but to outline the factors that should be weighed before coins were submitted for third-party certification.
As a reminder, the original article suggested questions for evaluating a collection. Are the coins common-date examples in average condition? If so, they generally were not worth submitting.
At the time of original publication, the article described the following: What about coins that are uncirculated examples of denominations still encountered in circulation? In most cases, those pieces would generally not justify submission. On the other hand, uncirculated examples of coins that are not commonly encountered in circulation may instead be reasonable candidates for grading consideration.
How do type coins fit into the decision? Type coins generally refer to coins made in 1916 and earlier, which are seldom, if ever, found in circulation. An uncirculated example, or one meeting the criteria discussed above, could merit submission. Rare or key date coins should consistently be reviewed for possible submission, especially when the coin remains in uncirculated condition.
Also, examine each coin carefully for signs of damage or alteration. Depending on how extensive that damage is, third-party grading services may decline to certify the coin. If they do certify it despite those issues, the coin will generally receive a details grade together with an appropriate qualifier.
Lastly, compare the cost with the likely benefit before deciding whether certification makes sense for a coin. The usual breakeven point is $50 or more, so all of these costs should be considered carefully before a final decision is made.
At the time of publication, the coin specialists at Atlanta Gold & Coin Buyers were described as qualified to assess whether coins might suit third-party certification and as available to address questions about buying or selling certified coins.
When this article was originally published, readers were invited to call 404-236-9744 for expert guidance and customer service. The original invitation said Atlanta Gold & Coin Buyers looked forward to hearing from readers and earning their business.
Happy treasure hunting!
