US coin packaging

[Naphthalene Man]

I feel like dill 'cause i can't remember the proper name for my title.. but...
I keep looking at some US coin sites and the only coins they have are all slabbed (i think that is it isn't it?)
can someone please explain to the fascination that the US has with sticking coins in those large plastic containers and having someone grade them? Why is this done as it only increases the cost and limits storage of these coins. Is it basically a trust issue?

Not trying to be deliberately negative but i just don't get it.

 

[goldpelican]

Numismatics.

Grades make the value. The difference between an MS63 and MS64 might be a population of 1000 coins with MS63 and 4 coins with MS64 - could translate into thousands or tens of thousands dollars difference in value.

 

[Goldmember]

Probly protects them as well - in the case

 

[Austacker]

It does all of the above, and it is slowly catching on here. The issue is cost for Australian coins and shipping it costs about $18 to slab and grade a coin, plus freight. For that reason you need to send a few at once,I was quoted by a local agent that each coin would cost close to $30 - $35 by the time I got it back as you need to pay postage both ways.

The biggest winner I feel is that it does standardize "that" particular coin it has been set. So in the S/H market or dealer market it has a standard attached to it. The choice then becomes if you agree and are prepared to pay that premium and a closer book value. As a real rough example -

If you had a CH/UNC (MS63+) 1956 Penny just to pick a date.

Book value - $250
Ebay Unslabbed - average is about $50
If it was slabbed it would go closer to $150 - $200
So the extra $30 is probably worth it for a better return. Again depending on the buyers and preferences. Also you would not bother with everyday circulated coins unless they were high value ie - 1925 Penny. However the under educated buyer may pay a little extra thinking the grade is a little stronger than what the seller is offering it at and vice a versa.

My goal is buy quality coins at the best price possible and then get them slabbed for protection and hopefully by the time it really catches on here 5-10yrs I will have a very worthy collection.

As for grading modern bullion and numismatics I do not see this catching on here for a while, but there is definitely a bigger premium in the resale market for these coins in the US. If you can get a PF70 grading on a modern coin they call it a first strike issue, while not technically correct in Australia as we do not grade our bullion coins as Proofs but the quality is so high they get these grades. Here is an example of a modern numismatic being slabbed and he relative price - 280650735010

I like them but like everything they have their good and bad points. I would also only stick with the name graders and keep away from the rest. Just because it is slabbed by just anyone does not carry a lot of weight.

 

[mmm....shiney!]

I like them but like everything they have their good and bad points. I would also only stick with the name graders and keep away from the rest. Just because it is slabbed by just anyone does not carry a lot of weight.

I believe in many cases that it is an attempt to justify charging higher prices. A serious collector would have the background knowledge and confidence when purchasing numismatic collectibles to, as Austacker said, (agree or disagree with the slabbed product), "The choice then becomes if you agree and are prepared to pay that premium and a closer book value." They would also have the experience to make an informed decision about un-slabbed coins. A collector new to the market doesn't have this experience and then requires others to guide decision making.

The problem is, even the most reputable grading firms can differ in their opinions which can amount to a difference of $1000's. Slabbing every coin in my opinion is a waste of money and the consumer has to pick up the price, imagine if round 66's were all slabbed!

"The principal problem with numerical grading, of course, is that it gives the impression of exactitude and precision and it is, in the final analysis, little more than a subjective view of the cataloger."
Source:
http://numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=18830