Introductory guide to collecting MS70 and PR70 coins
Coins certified 70 are the best coins on the market and are virtually irreplaceable, few other coins can keep pace with the price and performance of perfect MS70 and PR70 coins
“Coin grade or condition” is a term used within the coin business to indicate the condition, amount of wear or state of preservation of a coin. The grade of a coin is important because it is one of the three critical factors in determining value and future price potential. The other two factors are rarity and demand.
In the United States coins are graded based on the Sheldon numerical scale created in 1949 by Dr. William Sheldon that grades coins from 1 (barely identifiable) to 70 (absolute perfection). Only a tiny fraction of the coins produced each year have the full strike and flawless surfaces required to be considered perfect mint state 70 (MS70) or Proof 70 (PR70). It’s no surprise that coins graded in MS70 or PR70 are highly sought after among collectors. As a result, coins with the grade of 70 generally tend to appreciate in value more quickly than coins in lesser grades. For example a 1995 PCGS certified American silver eagle is valued at $40 in MS69 and $4,000 in MS70. The Proof version of the 1995 coin struck at WestPoint has a list price of $3,400 in PR69 while the perfect PR70 coin lists for $30,000. Many perfect 70 coins issued after 1982 can still be bought for under $200. Buying modern issue 1982-2010 coins in perfect MS70 or PR70 condition soon after they are released is an inexpensive way to collect perfect coins!
Over the past few decade's four independent coin-grading firms have gained prominence in providing unbiased third party evaluation of coins for a fee. They are in alphabetical order ANACS, ICG, NGC and PCGS. These organizations are staffed with well-trained and highly skilled experts in the art and science of coin grading. When you buy an independently graded coin certified by one of these organizations you can buy with confidence.
What you get with a certified coin
When you buy a certified coin you are getting a guarantee from an independent third party source, ANACS, ICG, NGC or PCGS that your coin is authentic and genuine, that it has not been altered, tampered with or cleaned. Certified coins are set in clear plastic holders called “slabs”. These slabs are sonically sealed and tamper evident and help protect and preserve the coin in its original pristine MS70 or PR70 condition. A description of the coin and its numerical grade are sealed into the holder; making it easier to place a value on the coin when you want to sell it. Most coin collections are passed down from generation to generation, often the people inheriting the collection know very little about the coins, the certified holders will allow them to safely handle the coins without damaging them, the numeric grade will help them easily identify each coin and find its true value.
Handling Coins
Certified coins are encapsulated in clear plastic and can be handled without the fear of damaging the surfaces with oils and other contaminants on one’s fingers. The acid or other naturally occurring chemicals on your fingertips can leave a residue on a coin’s surface that can’t be removed. Improper handling of coins can cause abrasions, decreasing the value of the coin by exposing fresh metal that can oxidize and corrode.
Your questions Answered
What does it cost to have a coin graded?
The current fee charged by ANACS, ICG, NGC and PCGS is $30 per coin.
Can anyone send in a coin to be graded?
Coin grading is available to anyone who pays the grading fee plus shipping and handling. The chances of submitting one coin and it coming back in perfect 70 condition are small.
How does the grading process work?
Each coin is inspected under magnification and in optimum light by two coin graders who assign a grade to the coin. If both graders assign the same grade the coin moves forward for encapsulation into a slab. If the first two graders disagree and don’t assign the same grade to the coin it is passed along to a more senior expert who will decide the final grade of the coin.
Is there an extra charge or fee for grading a coin in perfect 70?
No. You pay one fee regardless of the result. Dealers can’t pay extra to get more coins graded in perfect 70. Remember the coin grading service makes money from grading fees it has no interest in the retail value of the coin.
Aren’t all coins perfect 70 when they are released from the mint?
Coins are produced on a commercial production line in vast quantities and very few have the full strike and flawless surfaces required to be considered a perfect coin. Depending on how the coins are stacked and packed by mint employees, some perfect coins coming off the production line can already be damaged before they leave the mint. We recently submitted a mint sealed 500-coin box of 1 oz silver Canadian Maple Leafs we bought on the first day of release. None of these coins graded perfect 70 and only 129 coins graded MS69. Maple Leafs are known for their high quality and sharpness of strike but this batch had residue on the surfaces and the coins did not make the grade leaving us thousands of dollars in the hole on grading fees.
Can every coin be graded in perfect 70?
No most circulation strike mint state coins like pennies, nickels, dimes and presidential dollar coins don’t grade perfect MS70. The highest known grades for these coins are MS68 and MS69. Proof versions of these coins, which are made to a much higher quality, do grade PR70.
Are all grading services the same or is one better than the rest?
Having four major coin grading services, ANACS, ICG, NGC and PCGS serve the interests of the coin collecting community better than having only two. The industry is very competitive and each service wants to gain the most market share and best reputation. The truth is it would be hard for any company to be number one because of the spectrum of coins they grade - Ancient Greek and Roman coins, Shipwreck coins, mint error coins, Classic gold coins, foreign coins, pennies, nickels and dimes etc. people have their own preference for a particular service because they deem it the best or because most of the other coins in their collection are graded by a particular service. Westminster Mint is an authorized dealer for all four services and can fill orders in any holders you require.
Are the prices of all MS70 and PR70 coins the same?
The short answer is no. Depending on how few or how many coins have been certified perfect 70 by a grading service, known as the (certified population), there can be a big difference in price. Take the 1995 silver eagle as an example. The coin lists on the PCGS price guide for $4,000 in MS70 because only one coin has been graded perfect MS70. Compare this to the NGC price guide that lists the same coin for $660. NGC has certified 360 coins in MS70.
Who sets the price for graded coins?
The prices listed on a price guide are average dealer asking prices for graded coins. The prices are compiled from various sources including dealer ads in trade papers, dealer fixed price lists and website offerings, significant auctions, and activity at major coin shows. Price guides are just a starting point for asserting value. Some coins sell for less than the prices listed and some coins sell for more than the prices listed. Depending on supply and demand.
What is the difference between MS70 and PR70?
Coins struck for circulation are called mint state and coins struck for presentation or for collectors are called Proof coins. The term Proof refers to the method of manufacture rather than the grade or condition.
Which are the best MS70 and PR70 coins to buy?
Condition, rarity and collector demand are the three most important factors to consider when buying any coin. Look out for the coins with the lowest certified populations and coins that have a solid story behind them and have widespread collector appeal.
Are MS70 and PR70 coins better than gold and silver bullion coins?
People buy gold and silver bullion coins for different reasons than they buy collectibles. However, there is room in a collection or portfolio for gold or silver bullion and high end perfect 70 collector coins. One thing is true - most certified collector coins that now sell for $10,000 or even $50,000 could once have been bought for less than $1,000 and even for a few hundred dollars, whereas bullion coins will only ever be worth their weight in gold or silver. Take the 1999 silver eagle for example, we can offer them to bullion buyers for around $25 each. The same 1999 silver eagle certified in the highest grade MS70 by NGC lists for $6,250 because only 76 coins have attained that perfect grade.
I have heard First Strike or Early Release coins are the best is this true?
First Strike and Early Release coins are very popular with collectors. What these terms mean is that the coins have been submitted for grading within the first 30 days from their official release date. Their ultimate collectible value is still based on how few or how many were graded, the (certified population), and the level of collector interest in acquiring them. In 2008 10,232 silver eagles were certified First Strike while 4,154 coins were certified Early Releases. These coins are not rare or particularly valuable yet and both can be acquired for under $100. Measure the population of these coins against a 1999 silver eagle certified MS70 by NGC. That coin has a population of just 76 coins and lists for $6,250.
The PCGS 3000 index has returned annualized 11.3% since 1970 versus DJIA 6.5% since 1970.
Buying coins as an investment
Buying coins as an investment can be a rewarding experience. The PCGS 3000 index has returned annualized 11.3% since 1970 versus DJIA 6.5%. As with any other investment decision anyone considering investing in coins should conduct their own due diligence and get informed. The coin market is unique and has several idiosyncrasies. Coin investments take a long time to mature and common hold periods are 5 to 20 years.
The market for coins is volatile and thinly capitalized. Significant short-term price swings and volatility are always possible.
Westminster Mint, its principals and representatives do not guarantee a profit or guarantee against a loss for any coin you buy based on this information. You buy and sell coins at your own risk.