After over 45 years in the rare coin business I have experienced all of the fads, trends, booms and busts since 1958. Based on what I have learned in more than four decades I believe in having high quality, earlier rare coins slabbed by either PCGS or NGC, the grading service of choice for the ANA...the American Numismatic Association. Notice the word "earlier" written above. Since that is somewhat subjective, I will define that as coins minted before 1965, because in 1964 we ceased the minting of 90% silver circulating coinage. It also encompasses the popular Franklin halves, circa 1948-1963. Further, the coins certified should have true collector value as compared to coins whose value is dependent on mass marketing. Coins whose value is built on mass marketing always fall in value when the promotions end, so why buy them at all, or at least wait until all the hype ends and prices fall.

The advantages of buying coins certified by NGC and PCGS include the ability to sell many of them in the sight-unseen market while also allowing them to be sold in the sight-seen market where I buy and sell. No "pig in a polk" buying for me. My customers expect me to look at the coins I sell them and I do. If they are fairly rare I always use a 10X magnifying glass which, of course, increases the seeing ability of my eyes ten-fold. And you would be surprised at how many coins I reject that are graded by my favorite two grading services. Amazing what someone with more than 40 years of experience can see, especially when he is independent and not on some coin grading quota system.

An additional advantage of buying slabbed coins is that these two services guarantee the grade and authenticity of their work, as well as the fact that the coins have not been altered, say by the use of chemicals or putty. Then they are sealed in those nifty 50 cent cases that can make the coin worth far more or far less than otherwise. However, those cases are not airtight so problems can appear months or even years down the road.

One reason why I favor the NGC and PCGS grading services is that they produce a population (Pop) report which lists the total mintages of each coin, the total numbered graded by each service, and how many in each grade. All in all, a very important book and full of valuable information. If a grading service doesn't produce a Pop report, one may ask why not? After all, we are not talking about state secrets here, so why the secrecy?

Still, when all is said and done, they do more or less standardize grading...or do they? Well, it all depends on who is involved in the process from dealer to submission and then back again. Then from dealer to dealer and dealer to customer. The critical thing to remember is that the most important part of the entire process is the last expert who examines the coin before you buy it. Why? He is the final quality control person who decides if all went according to plan during the entire process. How important is he? Evidence from the famous GIA (Gemaological Institute of America) lab indicates that as many as 60% of their graded diamonds are assigned a different grade when cracked out of their containers and re-submitted. Hardly reassuring, but at least out in the open. Question? Who is your quality control person when you buy coins? I have seen coins off by as much as two grades. Sure, they trade at a large discount between dealers, but are you bidding on such coins or being offered them by a less than scrupulous dealer? If so, you are in for a rude awakening someday.

Sad Example: Dealer buys a non-certified rare gold coin with copper spots at an auction. Has it conserved...fancy word for having the spots removed. Then he gets it slabbed by a top service. Seems he did it right, but he still lost $50,000 on the coin. What went wrong? Dealer over-confidence? Lack of experience? Should have had his own quality control person examine the coin before paying more than $200,000 for this turkey? One of the above? All of the above? Imagine having him select your coins or bidding on his eBay auctions. Gulp! It happens and quite frequently. Even I have my own quality control person for expensive rarities. Call it a second opinion.

The top grading services do offer you some valuable protection and guarantees, but I wouldn't bet the farm on just their opinions. Consider them to be a foundation upon which a valuable collection can be buillt, but they are not the building inspectors sent out by towns and cities to see that the whole job was done according to code. For that you need an expert totally independent of all grading services to protect your best interests. So check out those credentials, references and recommendations before buying, not after the horses have left the barn. In the case of buying valuable coins, an ounce of prevention can save you big money.

A Billionaire's Opinion

In 1999, an extremely wealthy collector of silver dollars bought the Child's specimen of the world-famous 1804 silver dollar at public auction for $4.19 million, which included the buyers fee. It was graded as Proof 68 by PCGS making it the finest known of the 15 specimens that still exist. Since he bought the coin, not the plastic, he removed the hard plastic PCGS case. I assume that he kept the grading certificate from inside the case so it could be put back in some day, but perhaps not. I'm afraid that he is not in my circle of friends so I haven't been able to ask him. In any case, he was European in outlook as they often do this. They want to be able to handle their coins and not be forced to view them through a hard plastic case which typically happens here. You might say this is the difference between actually touching the person you most love or touching their coat or sweater. There is a very real difference.

However, the only coin in the world on the same level as the above coin is the Eliasberg specimen of the world-famous 1913 Liberty Nickel, perhaps the most famous coin in the world, especially with the national publicity blitz it got in May of this year. {A dealer offered $1 million for the one missing specimen if it could be found. Only five of these were struck and none are listed on the US Mint's books as having been made.} Like the finest known 1804 silver dollar, this is the finest known 1913 Liberty nickel. Specifically, it was graded as Proof 66, also by PCGS. In contrast to the owner of the 1804 dollar, the owner of this 1913 Liberty nickel preferred to keep it in its PCGS holder and even had a large special case made to place the smaller PCGS holder in for display purposes. [This world-class coin will be exhibited at this year's ANA coin convention, the largest in the world. It will be held in Baltimore from July 30 to August 3. Visit it and then drive a few miles down the road to see the coin collection of the American People at the Smithsonian. You won't regret this trip.]

So, there you have it... two very well known numismatic buyers who both prefer the top coins in the world, yet have a very different feeling about the value of the plastic slab. What would I do if I owned either coin? I'd leave it in its PCGS holder as I woudn't want to take the chance that a future grader would breath on the coin, (upon re-submission.) talk while holding it, or accidently touch the surface, as our hands contain both acid and oil which can permanently stain a coin. In fact, I'd immediately place this world-class PCGS graded coin in an Intercept-Shield container which provides the safest environment for a truly rare high quality coin. Then I'd place the coin inside an Intercept-Shield box for even more protection. As you can see, I'm the nervous type who has seen Murphy's Law at work and won't take any unnecessary risks.

An idea? If I bought the Eliasberg specimen of the 1913 Liberty nickel, maybe the owner of the top 1804 silver dollar would consider me to be a fellow traveler on the road of life? Let's see, the coin would probably cost $4 million wholesale { maybe $5 million after all the national PR?} if available, and there would still be no guarantee that he would invite me to play golf with him. Of course, I don't play golf, so I don't know. Let me think about it for awhile and if I decide to go after it I will let you know in a future article. One never knows as the coin business is full of surprises.

What About Ancient Coins, European and US Collector Coins?

The fact is that much of the world doesn't want their coins in plastic slabs because it ruins the experience for them. Just think of looking at coins in a glass display case at a museum. Hardly an intimate experience, right? Almost no collector wants their ancient coins in a slab and vitually no European collector wants their Thalers (Silver dollar sized coins.) and rare gold encased in hard plastic, although they might buy them certified and then crack them out like the billionaire mentioned above. In simple terms, they want to be able to handle the coins themselves, not the case.

Handling the coins themselves, after all, represents 2,000+ years of coin collecting tradition. If I remember correctly, the first important collectors were Roman emperors who collected the beautiful high relief coinage of Classical Greece.

Collectors of Indian and Lincoln cents and most other very popular US coins often don't insist on certified coins, unless they are high quality coins that need some protection and represent significant value. As for modern US coins such as very high grade US gold, silver and platinum eagles, forget slabs as the coins always come in very high grade. Stay with the beautiful cases the US Mint places their proof Eagle coinage in. It is heard to beat these plush royal blue and black presentation cases...yes, 150 years ago these types of cases would have been used for coins presented to visiting kings and dignitaries. The famous King of Siam set comes to mind immediately, but there were others.

The final decision regarding slabs is, of course, yours to make. Become informed as many people simply want to separate you from as many of your hard earned dollars as possible with little regard for your well- being. The first line of defense against these sorts is becoming an informed consumer, then finding your own quality control expert. And remember, I still prefer PCGS and NGC coins even if the system isn't perfect. It's at least a good start.

Questions? Send them over to info@certifiedcoins.com