Q: Should I get my gold coins graded by one of the certified grading companies before selling them on Ebay?

A: If it’s a U.S. gold coin and isn’t of modern mintage, then chances are yes, you would do better having it graded. But without knowing the specifics of your particular coin, it’s impossible to know whether it will be of interest solely for its gold content (i.e., a bullion coin) and, if that’s the case, there’s no reason to have it graded.

If you do opt for certified grading, it’s important to remember the new eBay rules that only PCGS, NGC, ANACS and ICG are acceptable grading companies when a seller is stating who graded the coin and it's grade. Any coins graded by other services are considered “raw” by eBay and you risk having your listing removed if you mention the grading service and their grade.

A rare, certified gold coin tends to sell for a higher price than an uncertified one. You know how they say in real estate it’s all about “location, location, location”? In rare coins, it’s about “condition, condition, condition” which is why certified coin grading has taken the industry by storm—people can now buy “sight unseen” online with confidence that the stated condition is accurate. This is due not only to the reputation of the grading service being at stake, but also the fact that most of the top services guarantee their grading to be accurate. So they do have a vested interest in ensuring the accuracy of their grading.

Another reason why you might want to consider having your coins certified prior to selling on eBay is a psychological one. Since a certified graded coin is considered to be worth a given amount, people tend to be more comfortable bidding higher than they would for a similar “raw” coin of questionable grading.

Remember, however, that there is a cost involved in having coins professionally graded. Not only is there a submission fee for each coin, you will have to cover the cost of shipping and insurance for your coin(s). After these costs are factored in, many “low end” rare coins and modern U.S. bullion coins will not increase in value enough to recapture these costs.

So, at the end of the day, it’s usually only worthwhile if the coins are rare. Also, in the case of non-gold coins, the coin should already be valued at least, say, $100-$200 in raw form unless you plan to hold onto it for many years or pass it down to future generations. In the case of modern issues, you might also do well to consider it if they are low-mintage, special commemorative type coins in uncirculated or proof condition. But be aware--modern minting processes allow for virtually perfect strikes on all new bullion coins such as the American Eagle and American Buffalo gold coins so these are widely considered guaranteed to be MS-69 to MS-70 even in the “raw” state as they come from the U.S. Mint. Thus, it’s not usually worthwhile having such coins certified.

If you’ve decided that certified grading is of further interest to you, visit PGCS, NGC, ANACS or ICG for details on their specific offerings.