Common Coins and Professional Grading

Sometimes dealers get special deals with the grading companies because they send coins in large quantities to get graded. It might be smart in these cases to get modern, high mintage coins that are very common graded because 1) it's cheaper than if a collector sent it in, and 2) such dealers are hoping to get high grades for their coins--which is when they are hoping to cash in from a coin achieving a high, more rare condition (aka condition rarity).

Collectors, at least in the United States, are definitely very concerned with the condition or grade of a coin. But I think there's a point where this concern is overblown. There are many cases where very common coins, like Silver American Eagles or recent circulating coins get perfect grades from a company and are sold at auction for hundreds if not thousands of dollars. I don't think condition or grade rarity is as appealing, in the short or long term, as coins that were made in smaller numbers (aka mintage rarities).

It is definitely better to have a hundred year old coin in the highest condition you can afford, but paying a tremendous amount for more recent coins in top-notch condition might be unwise. First, keep in mind that coins minted more recently are more likely to have a higher quality and number of coins in top grades. For example, just look at the quality of modern proof sets or American Silver Eagles. All of these coins seem to be at a minimum MS65 or PF65 right out of the factory. This wasn't always the case with our coins several decades ago. Lastly, most collectors don't bother sending in common coins for grading, so maybe sometime in the future when they do feel more compelled to send them in, a greater number of specific coins will have perfect or high grades--and then the prices of these once condition rarities will come falling down.

One last thing to consider is the grading of world coins. On ebay you will often see modern, common world coins professionally graded and selling for high prices. The seller will explain that these are scarce or rare coins because so few are graded at a perfect or near perfect grade. However, this fact doesn't make them rare and desirable. The top grading companies are located in the United States and collectors in most other countries, if not all of them, are probably indifferent or opposed to encapsulating and grading their coins. So in essence, collectors around the world have tons of these high grade coins as well, which makes these ebay coins and their high prices a scam. Don't fall for it.

Keep in mind that if a coin is common but professionally graded and selling at a bargain price, it might be desirable for you to purchase it. Coin collecting is not just about investment, but it's also about the hunt and collecting what makes you happy. I have a lot of coins I don't plan to sell or make a profit from but are just fascinating to me.