Hi all: I have a question regarding the condition of bullion coins. I've had Numismatics and have had them graded by PCGS and know how all that goes - as we all do. But isn't condition an issue even with bullion coins? For example, say you want to buy a Krugerrand. When you do that, you're basically buying an ounce of Gold - I get that. BUT, say the coin is beat up with nicks & scratches. Doesn't that make it worth somewhat less than the same type coin that's in excellent condition? Again, isn't condition ever a "bone of contention"? Thanks for any responses
Hi, yes it certainly is, I would also add older coins and bullion are also favoured for there scarcity so it might have nicks but it might also be 35 years old ..demand supply new coins are the easiest to source Regards 1for1
If I were ever to bone contention, I'd say it all depends on perceived condition. What one person may find acceptable another may not. While it's 'gold is gold is gold' you'd usually pay a little less for non-perfect coins as most people prefer not to have imperfect coins in their stack. It would only be a few dollars difference in most cases.
That's the trouble thinking "gold is gold" - you treat your stack badly, drop things, let kids toss stuff across the room and then you have trouble finding someone who wants to buy your beat up bullion because there's loads of other stuff out there that is in near perfect condition. What you think is largely irrelevant. What the person you're going to sell it to in the future thinks is more important as a far as condition goes.
That is certainly true for collectable coins that you are trying to sell to a fellow numismatist. However, run-of-the-mill gold coins purchased solely for bullion purposes (i.e. stacking) would be treated exactly the same way by a bullion dealer, regardless of scratches. So it would depend on what type of gold coin it actually is.
Bullion dealers are likely even more careful about the condition of the products they trade because they (ideally) turn their stock over as quickly as possible. If they keep offering customers scuffed up, damaged bullion at the same price as brand new products, the customers will likely go elsewhere, so the dealer will have to sell the damaged stuff at a discount. That discount doesn't come from the goodness of the dealer's heart, it comes from the lower price they pay for damaged goods. If they can't re-sell a damaged product, they'll either refuse to buy it or send it off to be melted down. You'll still either have trouble selling it or you'll have to accept a lower price that takes into account the cost of melting and re-manufacturing. Best just to keep your stack in good nick.
Not usually an issue with bullion coins but it does higlight the way buyers perceive value.... This can also be seen with some of the ridiculous packaging and Certificates of Autheniticity that coins are saddled with, the coin might well be in mint condition inside a capsule but if the packaging is missing or damaged then it needs to get discounted or the buyer will just find one with all the bits. Of course one damaged high premium gold coin should be exchangeable for another damaged low premium gold coin as once they are damaged the premium goes out the window, .
A bullion coin is just that, bullion. It's still worth the same price. When we buy them most we flick most into the melt pot, the better ones we try to resale to get a extra 1% or 2% or so for a week or two then melt. But all the same price for the buying price.
