What is a graded coin?
Third-party grading services authenticate a coin, assign it a condition grade from 1 to 70, and seal it in a labeled plastic holder, a 'slab.' For genuinely rare coins, grading is how the collector market establishes trust and value.
The two dominant services, PCGS and NGC, have graded millions of coins, and their holders trade sight-unseen in the collector market.
Why do dealers push graded modern coins?
Because grade creates margin. A modern bullion coin graded 'perfect' 70 can be pitched at several times its metal value on the implication that the grade makes it rare. But thousands of identical 70-grade examples often exist, and the resale market for them is thin.
Telephone sales operations favor graded products precisely because the grade makes price comparison hard, you can't easily check what a 'MS-70 exclusive label' coin sells for elsewhere. That opacity is the point.
How do graded coins show up in practice?
If you're offered a graded coin, ask two questions in writing: what does an identical coin in the same grade sell for on the open market, and what will the dealer pay to buy it back today? The gap between the two answers is the real cost of the grade.
For retirement accounts, note that the IRS restricts most collectibles; only specific bullion coins qualify, whatever their grade.