Grading is a science that requires years of practice because each issue has its own quirky devices complicated by dozens of flaws that decrease value and render the coin as non-gradeworthy or particularly valuable.
I have been collecting for 58 years. When purchasing raw coins online, I buy from eBay than from online and estate auctions, primarily because I can return the item if I discover a flaw that was not apparent with the posted photo.
Buying from eBay comes with its own distinct risks. An example:
I saw what I thought was a pristine quarter being offered for $38 or best offer on eBay, a 1951-S coin worth $160 in MS67 and $1000 in MS67+. Even though I knew that $38 seemed like a great deal, I won the coin with an offer of $34. (Always offer lower than asked.)
Here is the coin as listed on eBay (with an added photo of reverse):
I knew and trusted the seller, having bought from him in the past. He even included a video of this coin in the original listing. The video also did not reveal the flaw.
Let’s take another close-up view of the coin:
Can you spot the flaw? I couldn’t because the photo unintentionally obscures it.
When I got the coin, I realized it had the so-called “Ring of Death” in the right field. Here’s my photo showing the flaw, which I had to include in my return to qualify for the reimbursement:
I had a choice to keep the coin and consign it, knowing I would get my money back and more from a buyer without a high-level of grading experience. The machine damage here is faint but there, and graders at PCGS or NGC would see it immediately. So instead of consigning it I returned the item.
I share this anecdote to illustrate the hidden dangers of buying coins from the Internet. Unscrupulous sellers PhotoShop their coins. Here’s an example:
Looking at this eBay seller’s inventory, any knowledgeable hobbyist would realize that these virtually flawless Morgan dollars (including others inventory) are too good to be true. In the coin-buying business, the general rule is, “If it looks too good to be true, it probably has been PhotoShopped.”
These examples illustrate why grading knowledge is essential before you invest heavily in buying coins. If you have such skill, or not, be sure to patronize sellers who accept returns. Typically you cannot return any coins if won on HiBid, LiveAuctioneers, Proxibid, etc. In addition, you’ll be paying mailing, buying and handling fees.
If you don’t yet know how to grade with precision, please invest in holdered coins from PCGS, NGC, ANACS and CAC.
I hope that this post encourages viewers to spend their time learning how to grade rather than looking for rare errors like the 1992/1992-D Close AM, the 1943 copper cent, the 1982-D Small Date transitional error, the 1983/1983-D transitional error and other click-bait strike-it-rich posts on TikTok, Google, Etsy and social media.
That is a waste of hobbyist time.
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You can find more information about types, varieties, errors, grading, bidding and buying in Coin News Updated: The Essential Guide to Online Bidding. Please consider buying or gifting the work for a friend, as it underwrites this hobbyist blog. Thank you.
