When examining the "problems" associated with a coin it is important to first understand that there are a number of factors that will determine whether or not a "problem" actually exists. First of course is whether the problem in question represents pre, at or post strike damage, or actual damage of any kind. Secondly, there is the motivations of the buyer of the coin. Now, I know there are those who will say that the motive of the buyer or collector should not affect grade, but the fact is all coins are, at some point bought and sold and the motives of the buyer and seller must factor into the "value" that will be attached to the coin. There are three basic types of coin buyers:

1. Investors - these are the ones who are buying the coin for purposes of realizing an appreciated gain on their purchase, the greater the sooner the better. Generally, they will have an appreciation for the numismatics of a coin only as it relates to the "investment value' of the coin. In short what is the numismatic premium attached to the coin, over and above the intrinisic value of the metal involved in the coin. The small erthis ratio is the better as far as the investor is concerned. Here is an example: Silver in todays spot market is hovering around $10.00 an ounce. That means, give or take a buck or so, the average investor can acquire an ounce of silver for about $10.00. Now, a very high quality 1921 Morgan $ of say grade MS-65 can be had for about $35.00 to $40.00 and it contains about 0.90 ounces of silver. So, there is a numismatic premium of approximately $24.00 - $34.00 per ounce or a ratio of approximately 2.4:1 or 3.4:1. That is a fairly consistent ratio of intrinsic to numismatic value and is pretty low. This means that as silver prices increase, the percentage of increase in the value of the common date Morgan dollars, even the ones of extraordinary conditions, will tend to increase in proportion, and with the ratio of intrinsic to numismatic value low, this means it will be easier to find a market for the articles at the numismatic price, since it is so close to the intrinsic metal price.

2. Collectors - these are the buyers whose attraction to the coins is the historic, numismatic and artistic value they vest in the coins themselves. their purschases will be based in collection technique, needs involved in filling their collection strategies, and their desire to collect and possess historical rarities. Price will be a consideration related to their collecting strategy and their resources, not to their sense of the investment value, although that may also be a consideration.

3. Dealers and Brokers - Although not exactly the same kind of buyer there are basic similarities between dealers and brokers. A dealer or a broker will purchase coins in oder to resell them for a profit. The difference is that brokers generally mediate a sale between two others, a seller and a buyer, and a dealer actually purchases and then resells a coin. Either way, considerations of overhead and value affect the price at which either can either acquire, or sell a coin.

So how does all of this affect how a coin is viewed as either a "problem" coin or a "problem free" coin. Of course it is difficult to accurately generalize to any large class, but certain conclusions can be inferred from the basic motivations of each of these classes of buyers. Investors overall are not so much concerned with the actual problems of a coin so much as they are with the perception of problems with a coin. The higher the intrinsic to numismatic value ratio there is to a coin, the more they will be concerned with the perception of problems with a coin. In business, perception is reality. If someone sees a problem on the surface of the coin, it matters little to an investor if that "problem" is pre, at or post strike in origin. That is an argument they cannot afford since for them time is money and the importance of their investment is that it is liquid at a profit whenever they want to sell it. Anything that will slow or impede that process is a "problem" as far as they are concerned and they don't need some egghead collector telling them it is not really a problem, as there will certainly be some other egghead collector telling them that there is.

Collectors on the other hand want to know about a coin. They want to know it's history, how many were struck, were there any wholesale removals from circulation, were there any undiscovered hoards that have recently come to light, were there die problems of one kind or another that lead to a number of pre-strike or at strike varieties that might add to the rarity and numismatic value of the coins in question? For some, problems, such as errors, are a collecting strategy in themselves. For others collecting high grade and rarity are the only strategies. For others there are type, year, date, mint and denominational collecting stategies. These will all look at "problems" on the surface of a coin in one or more perceptual pardigms that will affect their willingness to buy or sell a coin at a given value.

Finally, all the dealers and brokers really care about is the movement of a given coin from one seller to a single buyer and back with a profit in the deal for the manager who fills the buying and selling requirements of it. For them, problems on the surface of the coin are simple roadblocks to the movement of a coin from a seller to a buyer. In order to overcome these roadblocks it is important that the dealer or broker either entirely avoid "problem" coins, something that is extraordinarily difficult to do since all coins contain some element of damage either pre, at or post strike, or they can understand the nature of the problems, so that they can adequately demonstrate the value or loss of value the problems actually mean to the purchase or sale of the coins in question.

Now, since everyone who ever comes in contact with numismatic coins is, at one time or another, all of the above, an investor, a collector, a dealer and a broker, then for them to profitably engage in any, it is important that they understand the nature and causes of the "problems" that occur on the surfaces of coins.