Slabbed Bullion...why?

Discussion in 'Silver Coins' started by SilverPOD, Aug 5, 2016.

  1. SilverPOD

    SilverPOD Member Silver Stacker

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    G'Day Stackers,

    I've come across quite a few 'slabbed' bullion coins, Kooks, lunar etc. What am I missing here? why are people charging far more for these coins then the coin and I assume the cost of getting it graded is worth? Does the slabbing keep the coin in better condition or does it give it a more none fake appeal?

    I also tend to see more NGC then PCGS bullion coins do others see that trend?

    Thanks for your thoughts
     
  2. spannermonkey

    spannermonkey Well-Known Member Silver Stacker

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    :lol:
    It's an American thing ;)
     
  3. Golden

    Golden Member

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    It makes it easier to sell to Americans on ebay.

    It's also easier to put a fake in it. :)
     
  4. mmissinglink

    mmissinglink Active Member

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    There's quite a number of obvious reasons why there are (often high) premiums on (certain) slabbed bullion coins....it's the same reasons why any numismatic coins are slabbed. Some of those reasons include:

    Authenticity (elimination of fakes)

    Professional third party grading

    Protection

    Online accessible-from-anywhere census

    Online accessible-from-anywhere price guide for many of the slabbed coins




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  5. mtforpar

    mtforpar Member

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    Grading creates a stratification based on the quality of the coin. There is always a market for the nicest of things and grading coins identifies the nicest of the issue. Those nicest coins command a higher premium that the rest of the lot.

    Some who are not proponents of grading may argue that with modern coins grading is rather silly because they are all pretty much the same top notch quality and were never intended for circulation. I won't delve into that discussion here except to say there is currently quite a vibrant market in the US for graded modern coins.
     
  6. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    I am sure there are valid reasons to slab some bullion, but why would do people bother slabbing a 2016 kangaroo or ASE or other coins with multimillion mintages.
     
  7. fishtaco

    fishtaco Active Member Silver Stacker

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    Why do many people regularly wash and polish a mass produced very inexpensive car with basic duco and even buy seat covers and dash mats/floor mats to protect the cheapest moulded materials use in that cars manufacture?
     
  8. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    So true, but surely no one buys a new Hyundai and spend about the same as purchase price on accessories Hahhahhhhaha.
     
  9. spannermonkey

    spannermonkey Well-Known Member Silver Stacker

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    Want to make a bet ;)
    "Autosalon"
     
  10. mmissinglink

    mmissinglink Active Member

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    See post #4.





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  11. mmissinglink

    mmissinglink Active Member

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    This is just a few of many, many, many examples of why coins minted in the millions are slabbed:


    Morgan Dollar 1887-S
    Mintage: 20,290,000
    Value of slabbed NGC MS68 = approx. USD $30,000



    Morgan Dollar 1886-S
    Mintage: 19,963,000
    Value of slabbed NGC MS68 = approx. USD $20,000



    Morgan Dollar 1880-S
    Mintage: 8,900,000
    Value of slabbed NGC MS68 = approx. USD $45,000



    In 50 years long after most of the 2016 Kangaroo or ASE have become fodder for the melting pot or have significant surface wear due to stackers handling them as they would a used toothpick, perhaps the highest graded slabbed ASE's and Roos that are remain will buy you a brand new 2066 car!


    ;)



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  12. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    ^^ Morgan's are bit different though. MS68 Morgan was already rare when NCG opened its doors.

    What I am alluding to about eagles and Kangaroos is that all decently stored coins in tubes unopened will be MS68, MS69 and MS70.

    though a good priced 1986 slabed ASE might be a long term bet,
     
  13. Silver_Dealar

    Silver_Dealar Member

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    What about the dreaded milk spot?
     
  14. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    I think that is another lottery. Some will win some will lose. Might be a better bet to store it for few year and only select clean ones for slabbing.

    Having said above, I think there is a market for slabbing newer, exotic or low mintage coins or medal, but the OP was about generic bullion.

    Having said all this, how much would it be for an Australian person to get these coins slabed, I'd imagine postage is the killer for us.
     
  15. mmissinglink

    mmissinglink Active Member

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    Yes, it is different as you pointed out, of course (some or perhaps even most Morgans saw some amount of circulation), but it's the same motivation as to why collectors might choose to pay premiums for modern slabbed bullion coins.

    Many collectors want to own and pass down for generations a coin type that is in the best possible condition.

    Many collectors collect sets and at least for the ASE, if they happen to be lucky enough to have all previaous ASE's in graded 69 or 70 condition, then naturally a 2016 in the same condition makes complete sense.

    Tubes are not the ideal way to preserve a coin. Most coins in a tube still move around and when they do and the coins surfaces are touching, wear can become obvious even to the naked eye.



    I'm convinced beyond a shadow of a doubt that if Aussies had an NGC and PCGS and ANACS in their backyard like Yanks do, there'd be far more popularity in Australia for slabbed coins....even modern bullion.


    Do you consider the 1 oz. silver Lunar series 2 bullion coins as bullion in the same category as the Kangaroo or ASE?



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  16. danman49

    danman49 Well-Known Member Silver Stacker

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    Not all coins are created equal. Wear on dies, quality of blanks, contaminants in any part of the process including cleaning agents used on machinery, even contaminants in capsules or tubes can all lead to the million or so bullion coins having very few MS70 grade coins. Then storage, handling during shipment (vibration can be a big killer) not to mention actual handling of the coins by collectors whittles it down some more. Finally most of the million coins will not be graded so the actual number of MS70 slabbed coins will be quite small and attract a hefty premium over its counterparts in years to come. Your early issue box of 500 kangas may contain 50 or more MS70 coins if it has been handled well BUT a box near the end of a dies life may have no MS70 coins but a lot of MS69 or MS68 coins.

    I believe the PCGS grading service is the more popular one which means coins graded by them are easier to sell at a premium than coins graded by other services. Happy to stand corrected on this.
     
  17. Golden

    Golden Member

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    You can drop off your coins at trade shows, or even have them graded right there.
    http://www.pcgs.com/Shows
     
  18. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    I would consider lunars at the cusp of collector coin.

    As for tubes not being ideal storage, I concede, still with millions out in collections they will be a sizeable number grade able coin don't you think
     
  19. postafoa

    postafoa New Member

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    such an excellent question, i regret seeing this thread so late.. just want to add my 5 grams to the thread..

    imagine yourself as a wealthy investor in the year 2235, with a fetish for pre-collapse early 21st century gold and silver bullion coins

    yes, the answer to your question lies within placing yourself in the shoes of the buyer, instead of the investor.
     
  20. mmissinglink

    mmissinglink Active Member

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    I found this interesting comment in a video on YouTube:


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