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