| Understanding Coin Price Guides | | | | Therefore, ALL Price Guides have a "silent |
| | | | assumption" built in to their guide; which |
| By Robert L Taylor, JD | | | | is that the Grade that YOU decide upon, is |
| | | | True or Accurate, and that such Grade is |
| There are many coin price guides published; | | | | based on the ANA Standards. |
| weekly, bi-weekly, monthly and annually. | | | | |
| They come in the form of magazines, | | | | The first difficulty that arises is that most |
| newsprint, "hot sheets", and books. All of | | | | people never know if the Grade that they have |
| us have referred to one of these from time to | | | | decided upon is Accurate. Of course, this |
| time to ascertain what a particular coin | | | | difficulty never comes into question, if the |
| might be worth. Yet, few of us stop to | | | | coin is Professionally Graded by an |
| think about what we are getting from any one | | | | appropriate company. There are only four (4) |
| of these Price Guides, beyond the price or | | | | reputable Professional Grading companies that |
| value of a coin. After all, don't price | | | | strictly follow the Guidelines set by the |
| guides, just give you the price? What else | | | | ANA, and they are: PCGS, NCG, ICG, and |
| is there? | | | | ANACS. |
| | | | |
| Basic to an understanding of price guides are | | | | The second difficulty arises because of this |
| two things: 1) the Grade of the Coin; and | | | | "silent assumption" or Foundation of all |
| 2) the Foundation of the price guide. | | | | price guides is whether or not the Grade has |
| Knowing the Grade of the Coin is required | | | | been decided upon using the Guidelines or |
| before one can begin. Saying so seems to be | | | | Standards established by the ANA. If you |
| obvious, but what more does it mean? | | | | don't have the skills and training of a |
| | | | professional coin grader, the decision is |
| Unless the coin is Graded by an appropriate | | | | probably questionable. |
| Professional Grading Company, which has | | | | |
| designated what Grade and Identity has been | | | | Even if you do have the skills and training |
| assigned to the coin, most of us are making | | | | of a professional coin grader, the decision |
| an assumption about the actual Grade. This | | | | is still probably questionable. Why? |
| assumption we make can be very dangerous | | | | Because even professional coin graders have |
| because of: a) the difficulty in grading a | | | | differing opinions. This is why the |
| coin; and, b) the different possible | | | | reputable professional coin grading companies |
| outcomes or results that occur. One Grade | | | | require the opinions of three (3) |
| "point" or level can make the difference in | | | | professional coin graders to arrive at the |
| hundreds or thousands of dollars in the Value | | | | "Grade" designation to be placed on every |
| of a Coin. | | | | coin. |
| | | | |
| Price Guides assume that YOU already Know the | | | | The obvious conclusion is that a Serious Coin |
| Grade of the Coin. This is why we have the | | | | Collector is going to invest in rare and |
| First Rule of Coin Collecting: Know the | | | | modern coins that are graded by one of the |
| Grade of Your Coin. | | | | Top Four reputable Grading companies. It is |
| | | | the only certain way to eliminate the |
| Secondly, ALL Price Guides are founded on the | | | | disagreements and arguments about the Grade |
| same Principle, which is that the Coin, whose | | | | of Any coin being Bought or Sold! It is the |
| price you are looking up, has been Graded | | | | only certain way one can Value their coin |
| using one Grading Standard. That Grading | | | | collection. It also eliminates "getting |
| Standard is set by the ANA - American | | | | taken" or cheated buying raw coins. |
| Numismatic Association - and is entitled the | | | | |
| Official Grading Standards For US Coins. | | | | Have fun collecting your Perfect Coins! |
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