Grading of Low Value Coins Question

So, I'm still kinda new to collecting (I collect world coins), and I have a grading question.

As I'm perusing eBay, I keep seeing very common, low value coins for sale in graded slabs.  I'm not talking coins worth a few dollars even; I'm talking coins worth less than a dollar.  Many of them on eBay are clearly trying to recoup their outlay for grading as I saw one coin worth 50 cents in UNC condition for sale for $25, but still… Why would you submit that coin in the first place?  Thanks for any insight… Just trying to figure this hobby out and not get ripped off!

In the end It's simply marketing for maximum return. Implying you are purchasing something very special or unique and attempt to convince you that it is worth the premium they want you to pay. First Strike, First Release, Error, Limited Edition, Rare  Mint State, etc. Always buy the coin, not the slab. Especially for modern low value coins. If you start progressing into truly valuable coins, that is when a slabbed and graded coin sometimes is worth the premium paid for scrutiny and authenticity by professionals.

Some people have more money than brains. Slabbing services will eagerly slab any coin, as long as the fee (Usually $20 or more) is paid.

The other explanation is Chinese knock offs and fakes that appear pre slabbed and often come out of Chinese online suppliers like Temu, Ali and Wish. These coins masquerade as rare world coins (American silver dollars, Chinese republican era dollars, French commerce Piastres and British Trade Dollars are very common). They can be bought for as little as 4 cents each on some sites.

So are these coins actually PGCS and NPC etc or just ones like this

Chinese fake coin in a slab.

I'm talking about this sort of thing… And it's not the only one, just the first that came up… It's being sold for $53 + shipping.  The estimate here on Numista for this coin is 49 cents. I guess my original question would be better phrased as, why would someone pay PCGS grading prices for a 49 cent coin? 

Don't confuse Numista's UNC values for higher grade MS68 coins. Here's NGC valuation of this coin in MS68 grade:

The goal is to get an MS69 or hopefully an MS70 grade. Not saying that this accounts for everything you're seeing on ebay but for this example it's not a "49 cent coin."

Revised:  This coin actually sold for US $10.51 in March 2024.

Ok… That makes sense.  I'm still not paying $53 for a $10 coin!   LOL! 🤣

And you shouldn't.  It would be a record.  See my revised post above. 

Your edit gives me new questions…  Is that an auction record on that website only? Or does that website know what things have sold for across all possible auctions (eBay, in person, etc.)?  Thanks for the info!

As the auction details in the picture I posted says, it was sold on Ebay. I'd almost guarantee that the same person who bought it off of ebay then is now selling it on ebay for 5 times what they paid for it 

Herein lies the reason I will not have my coins sent to an independent grading service, all they want is to make a fast buck out of naive collector, learn to grade your coins yourself. I bought a book in the 1970’s called grading British coins and learned how to recognise and grade my own coins, in reality any competent collector can do it themselves rather than line a third parties pockets to have your coin entombed in a plastic coffin ⚰️ coin collecting is a tactile hobby and even as I do handling coins with cotton gloves doesn’t detract from it.