The Art of Strategic Upgrading
Twenty years ago, I had a Morgan Dollar collection in VF-EF grades. Today, every coin sits in MS65 or better. I didn’t win the lottery—I followed a systematic upgrade strategy that transformed a $15,000 collection into one worth over $200,000. Here’s the roadmap that works.
Why Upgrade?
The mathematics of coin collecting favor higher grades:
- Value concentration: One MS65 coin often equals 10-20 VF coins in value
- Storage efficiency: 50 MS65 coins fit where 500 VF coins once sat
- Market liquidity: Higher-grade coins sell faster and more predictably
- Long-term appreciation: Quality coins historically outperform lower grades
The Upgrade Hierarchy
Smart upgrading follows a logical progression:
Phase 1: Circulated to Choice AU
Move VG-F coins to EF-AU. This often costs 2-4x your current coin’s value but represents the biggest aesthetic jump. A VF Morgan Dollar shows significant wear; an AU58 appears nearly mint.
Phase 2: AU to Mint State
The AU58 to MS63 jump is psychologically significant but sometimes surprisingly affordable. MS62-63 coins aren’t dramatically more expensive than AU58 for common dates.
Phase 3: Low MS to Gem
Moving from MS63 to MS65 requires patience and capital. Expect to pay 2-5x your MS63’s value for MS65. This is where the “gem” designation begins.
Phase 4: Gem to Superb Gem
MS65 to MS66-67 becomes exponentially expensive. Many collectors stop at MS65 for most coins, pursuing MS66+ only for key pieces.
The Self-Funding Upgrade
The secret to affordable upgrading: sell what you replace. When upgrading from VF to MS65:
- List your VF coin for sale
- Apply proceeds toward the MS65 purchase
- Add the difference from your budget
Example upgrade path for an 1881-S Morgan Dollar:
- VF-30: $35
- Upgrade to MS63: $65 (pay $30 difference)
- Upgrade to MS65: $200 (sell MS63 for $60, pay $140)
- Upgrade to MS66: $450 (sell MS65 for $180, pay $270)
Total out-of-pocket: $475. Final coin value: $450+. But you also enjoyed owning three coins over the journey.
Prioritizing Your Upgrades
Not all coins deserve equal upgrade priority:
Upgrade first:
- Key dates where grade dramatically affects value
- Personal favorites you examine frequently
- Coins where better grades are available and affordable
- Series you’re actively completing
Upgrade last:
- Common dates that are readily available
- Coins where higher grades are prohibitively rare
- Placeholder coins you’ll eventually replace anyway
The Patience Dividend
Upgrading rewards patience. I’ve waited three years for the right MS65 1893-CC Morgan to appear—but when it did, at $5,500, I was ready. Rushing into overpriced upgrades eliminates the financial benefit.
Set price targets for each upgrade and wait. Use eBay completed listings, Heritage auction archives, and dealer price lists to establish fair market values. When coins appear below your target, act decisively.
Avoiding Upgrade Traps
The grade-inflation trap: A coin in an old MS65 holder may be worth more than a new MS66. Don’t assume new always beats old.
The eye-appeal trap: A stunning MS64 often beats a technical MS65 with poor eye appeal. Upgrade to better coins, not just higher numbers.
The completion trap: Don’t upgrade at any price just to “finish” your set. Bad purchases at the end ruin otherwise well-curated collections.
The opportunity cost trap: Money spent upgrading common dates could purchase key dates you lack.
Documentation and Tracking
Maintain records of:
- Purchase price and date for every coin
- Sale price and date when upgrading
- Target grades and prices for planned upgrades
- Total investment versus current value
This data reveals which upgrades provided best returns and guides future decisions.
When to Stop
Know your endpoint. For most collectors:
- MS65 represents “gem” quality at reasonable cost
- MS66 provides top-quality without trophy-coin pricing
- MS67+ is for registry competitors and specialists
An MS65 collection tells the story of careful curation. An MS67 collection tells the story of deep pockets. Both are valid—know which story you’re writing.
