Analysts Predict Lower Demand for Modern-Day PCGS, NGC-Certified Coins Posted by Brian Ford on September 04, 2013
A recent report by the official Certified Gold Exchange shows that some gold market analysts are predicting a decline in demand for certain gold and silver coins. Companies such as the Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS) have existed for decades and allow coin owners an avenue to prove that their coins are not only genuine, but in mint state condition.
Many investors will only buy gold coins minted prior to 1933 – and silver coins minted prior to 1935 – if they have been certified by one of these two grading and authentication companies. In recent years some marketers have taken it upon themselves to have brand new coins, like American Eagles and Buffaloes, graded, and some investors have become confused as to the true value of such coins.
“If an investor sees a one once coin with an “MS63” grade and another one ounce gold coin with an “MS70” grade then the natural assumption is that the latter is a better coin,” says Walter Haggerty, gold coin researcher at the Certified Gold Exchange. “Novice investors have no idea what the difference is between pre-1933 and post-1986 coins and they do not know which coin has an edge over the other, or why. Because of this savvy marketers have been able to convince gold buyers to purchase certified coins dated 1986 or later, and unfortunately such coins just aren’t worth what people are paying.”
Haggerty says that brand new coins almost always receive a grade of Mint State 69 or 70, but the value implied by those grades is not real because the coins are brand new. Coins minted prior to 1933 survived hoarding, the Great Depression and even a massive melt-down of gold coinage, so the coins that are left are of high value to investors and collectors alike. With information mediums such as Google, Wikipedia and Twitter becoming more popular than ever, Haggerty says, the likelihood of people coming to their senses about the supposed value of modern-day certified coinage grows larger every day.