Mar 07 2008
I Am A Cracker And Play The Crack-out Game
It really is a game that many coin collectors and coin dealers play. It is a high- stakes gamble, very much like playing poker, where you ante in a small sum of money and hopefully win a sizable pot. Just how do you play this coin game and win lots of money?
The crack-out game is a recent coin collecting phenomenon. In the late 1980’s many independent third-party coin grading services came into being. The high demand for pristine, unblemished certified coins paralleled a gap between the real market value of mint state coins in the higher grades. A coin in MS-65 might bring five times more money than an MS-64. Wise traders began buying premium-quality (PQ) coins that were at the upper-end of their mint state level and “cracking” them out of their hard plastic holders so they could resubmit them to a different grading service in hopes of receiving a higher grade and make a big profit. This is a game to be played by experts when we are talking about rare and very rare PQ coins. The risks are big at this level and the game needs to be approached scientifically, calculating all the odds and playing your hand when the odds are in your favor. Sometimes the coin can be downgraded by a service as a result of a single hairline that a previous grader missed. The decline in grade could cause a hugh loss in the market value of that coin. Nearly a quarter of all certified coins have become a part of the crack-out game. The game should be played with less valued high quality coins when you first start so that you gain the experience without losing your shirt financially. To be a player consider these risks:
1. Coin graders have weaknesses and grading services have different standards.
2. Certain types of coins like the quarter eagle Indians and Standing Liberty Quarters are not easy to grade making them a higher risks.
3. “Cracking” a coin can damage it as plastic pieces adhere to the coin surface requiring a careful air brushing before resubmittal.
4. The volume of coins being resubmitted is hugh increasing the risks factors.
5. You have to play the percentages and develop and apply sharp grading skills or lose bigtime.
6. It takes pratice, practice, practice! The more experience you get the better you become at playing the game. You will probably lose before you can win.
I have chosen to play the game with a few (PQ) silver coins found with my metal detectors. My risk is lowered because I did not pay a premium price for the coin and my investment is in the cost of the initial submission and the resubmission of them. As a novice at the game, I am having fun and making a little money. I know that I am not ready yet to resubmit some of my MS 65-68 coins, but like a small time poker player, I am chomping at the bit to go to Monte Carlo. Here’s to “diggin It”!
Larry
Tags: coin collecting, coin grading services, crack-out coins, metal detecting, PQ coins, coins
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