Question regarding 'high quality' of bullion coins

[mmissinglink]

So, I've been stacking for about 22 months. I've learned a lot but there's a lot more to learn.

I think the question I have that follows is more for long time stackers than it it is for new stackers but all may be interested in the answers anyway.

When I first started my very modest (okay, small) stacking endeavor in the Fall of 2012, I read about the advantages of stacking junk silver and modern raw silver bullion coins like the ASE. I bought some of each and never actually bothered to look at the quality of those products. Shortly after this time I started becoming aware of semi-numi (collector) coins and even graded coins. So I bought some modern semi-numis and some modern graded coins. I've always personally distinguished junk and raw (meaning to me, not graded) bullion coins from semi-numis (even separating them in my SDB) because the way I see it, the primary reason why I would buy junk and raw, ungraded bullion is different from why I'd buy collector (semi-numi) coins. Clearly, mints which produce both types of coins use a different manufacturing standard for bullion vs collector coins, almost always from what I understand. That's why the premiums on collector coins can and often are higher than on bullion coins....it costs the mint more to quality control produce collector coins over bullion.

So, when over these past 15-20 or so months in reading discussions on forums like this where I noticed that some stackers appear to be very concerned about the quality of the bullion coins they are buying, it makes me wonder why there is so much fuss over a piece of bullion which is ostensibly made not for collectors, but for investors / stackers. I can understand a big fuss made about collector coins, but raw bullion....really? What am I missing?

For the long-timers:

Has it always been like this?

Is this a recent trend in the stacker community?

Has this been brought on by the popularity of TGP graded coins?

What is your take on making a fuss about bullion coins?






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[yrh0413]

depends on what coins you are referring to. I have seen new collectors being anal on the condition of their silver maples and even made a big fuss at local bullion stores when they milked. It is part of the learning process.

those who complained mostly are referring to semi-numismatics like the lunars, kooks, pandas. Think of it this way... we paid higher premiums for these and we expect them to appreciate in years to come. Obviously we care about the condition of our coins as it affects the resale value and profitability of these coins.

I have personally seen a customer screaming to the salesperson at a bullion store when the salesperson handles a bunch of silver eagles with his bare hands. "How could you touch them with your bare hands? Don't you know you should use gloves?" Ah what the heck...

 

[dccpa]

If you are buying ASEs or coins where the design doesn't change, I doubt the quality matters much. But those coins are going to closely track silver prices. I sold over 99% of my ASEs last year as I thought silver would go lower.

What I didn't sell was my kooks, lunars, etc. I originally bought them as I hoped they would gain a numismatic premium and they have.

My question is, if you don't expect premium gains on bullion coins, why would you bulk buy anything other than the cheapest ones?

 

[sammysilver]

I think the answer is in the mindset of the stacker. I collect quantity. That is my measuring stick. Others collect quality in numis. Others take the middle ground. We are all probably anal over our model.

I've only knocked back one coin because of a hole drilled in it. Others complain of milk spots and scratched capsules, others toning. For some it is a day to day activity, buying and selling, refining the stack, getting pleasure from the stack. If it is your entertainment then you become introspective and individualise each coin, that is when you start complaining about quality.

So it comes down to why you stack. My coins are in a safe deposit box. All the same, in tubes, taped six together, and economically stacked to minimise storage costs. I sometimes mentally fondle the number of these coins in my head, but don't really give a stuff about the coins themselves. They are all orphans.

 

[JB3]

That exactly mirrors my views. I quite like the look of them, but I don't actually go and look at them: I have better things to do in my spare time.

For me, I buy bullion for its bullion value. I often pay a bit more for a coin vs a round and, if I was selling, I might sell my CMLs and ASEs before my Andorran Eagles, my Brits, or my Elephants, but I still stack them all for bullion value, not appearance.