| by James Halperin
The grade is the single most important factor we use to
determine coin values. But to the experienced numismatist, a
coin’s grade offers but a starting point from which further
evaluation begins. Furthermore, three coins of the same type and
date might display identical surfaces, color, eye-appeal, and
strike, and properly deserve the same technical grade - yet be
quite different.
Coin A may have just made the grade.
Coin B might be a typical example for the grade.
Coin C may have just missed deserving a higher grade.
To some this may seem like hair splitting, but is it? Would you
rather have a collection of coins that just made the grade or that
lay some claim to a higher grade? Grading standards have always
changed over time, and, even after the introduction of grading
services, will continue to evolve. Some of your high-end 64s may
become 65s the next time the series heats up!
While every collector must determine what he or she willing to
pay for premium quality, I would offer these suggestions.
1. When the supply of coins in the next highest grade is
plentiful, premium quality matters less.
2. Paying extra to obtain premium quality is especially wise
when moving up to the next grade would cost significantly more.
Determining coin values is a lot like playing horseshoes.
Coming close counts!
Premium quality is a term dealers use to identify these near
misses.
When judging premium quality, most experienced numismatists
employ the same basic
checklist. Such judgments are subjective, but also logical and
predictable. The coin in question must be clearly exceptional for
the grade, a difference best noticed in side-by-side comparisons
with other coins of the same type and same grade. The difference
may be slight but it’s noticeable. You don’t have to use your
imagination to see it!
Premium quality is often defined by a combination of factors.
The coin may have minimal bag-marks for the grade along with
better than average luster and a nice strike. A premium quality
coin should, at first glance, appear deserving of a higher grade.
It’s important not to confuse premium quality with
undergrading. Unless the coin is an undervalued rarity, a “lock
upgrade,” or has exceptional qualities beyond grade (such as
rainbow toning, mirror surfaces, or an incredible strike), the
premium paid should be a reasonable percentage over the going rate
for average quality, rather than slightly below the price of the
next highest grade. (Only a top-notch professional dealer, or a
specialist ina particular series, is likely to be able to pick out
lock upgrades.)
Anyone asking a premium quality price should be able to clearly
explain why the coin is above average for the grade. As an
example, 1893-CC Morgan Dollars in uncirculated condition are
often found heavily bag-marked and weakly struck. An MS-63 example
with no heavy marks on the cheek area and full hair detail over
the ear might well deserve the premium quality designation. Ask
yourself: Is what I’m paying extra for something obvious that I
appreciate? If the answer isn’t yes, keep shopping!
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