Why Grade Bullion coins & 1st Strike???

AME sold so far.

http://www.coinnews.net/2011/02/02/silver-eagle-hits-6-42m-monthly-sales-record-in-january-2011/

 

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I just don't get the appeal of silver eagles. They have been the same since 1986. If you've seen 1, you've basically seen them all. How dull! Only the numbers at the bottom change. There are many more creative and attractive coins out there. I am not speaking as an investor; I understand the appeal in that regard. I am speaking, rather, as a collector. Why would a person want to "collect" a group of things that look so much alike? zzzzzzzzzzzzzzzzzzzzzz

 

You present a puzzling statement to say the least... regardless of the clueless collectors utilizing the Bullion Investing forum to discuss why their hobby applies numismatic considerations on bullion coins.

Ask yourself, do not most coins collected by coin collectors look alike? Morgans, Ikes, quarters, nickels, dimes, Francs, Pounds, Euros... A lot of collectors and a lot of similarity. What precisely then do you collect? Is everything a pattern in your collection? A original piece of medallic art? Do you seek mintages of one to suit your aesthetic preferences?

 

There are many collectors who feel the same way and put together type sets instead of date/mintmark sets. Perhaps you would enjoy putting together a set of one ounce silver coins from around the world. There is something for every taste.

 

I thought that slabbed ASE/AGE are the only bullion that could be held in certain types of investment accounts was the reason for the slabbing.

 

wow! That is something that I had never heard before but it makes many things that I've scratched my head over make a lot more sense to me!

 

Without actually checking, I'm going to hazard a guess that this isn't true.

 

This is the only place that I have ever read and have a reference for that specifically mentions how graded coins are considered in this regard:

First State Depository Company, LLC

Gold IRA’s & 401K’s

 

Prior to a 1997 change in the law, ASE's and AGE's were the only form of bullion approved for IRA"s, and AFAIK AGE are still the only form of gold bullion that's approved that's not at least .995 fine. But slabbing has never been part of the regulations. Slabbing provides a "third-party" opinion that the bullion is genuine and provides some protection, but is mainly of interest for the collectors rather than bullion investors.

 

Curious, what change occurred in the 1997 law? Do they now allow silver bars and ingots that have a purity of .999?

 

Section 304 of the so-called "Taxpayer Relief Act of 1997" happened:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=105_cong_public_laws&docid=f:publ34.105

Yes, .999 silver is now permitted in IRA's, as is platinum and palladium bullion.

 

I would have to take offense to that, as someone trying to build a set of graded ASE's. Please tell me what the difference is between a graded silver eagle and a graded washington quarter or kennedy half or ike dollar or wheat penny? An ASE is a coin just like the others, with a face value of $1. Why would anybody want a high grade wheat penny? It has 3 cents worth of copper value. Or why would anybody pay $200 for a 1937 Washington quarter? It has $5 worth of silver. Seems like a stupid investment to me. Except it's not. Because there are only so many high grade coins of any type in the world, and serious collectors want the best specimens they can afford. I would love to have a graded set of Peace dollars or Ike dollars or Walking Liberty halfs. The whole reason most people collect coins is because they think the coins they collect look good. And a lot of people want the best example they can find of a certain coin, because they look better.

Someone else commented about how they are all the same except for the date.. Are Washington quarters or Kennedy halves or Wheat pennies any different? No. I would never buy a graded set of Lincoln pennies, but that doesn't mean I'm going to call someone stupid if they do.

 

Washington Quarters, Kennedy Halves, etc. are coins that are struck for circulation. (Well, that is no longer true for the Kennedy Halves.) ASEs are bullion pieces that were monetized so they could get through customs for export to other countries.

That is true. The number of high-grade 1937 Washington Quarters is very tiny compared to the millions and millions of high-grade (MS-69 and 70) ASEs that are available.

 

I see no real value in graded coins today. Authentication is important for older,or foreign coins.

 

How there are how many MS-70 ASE's????
From PCGS as of last population report:
1986 - 3
1987 - 0
1988 - 1
1989-1994 - 0
The list goes on and on.

Proofs
1995 W - 2
1994 P - 59
1993 - 70

Know the facts before making a statement like that.

 

What may be true today will not always be so further into the future. If authentication is important for older coins, then consider also that at some point modern coins we discuss now will also be considered as 'older'. Unprotected, coins over time will acquire various kinds of damage or be lost to the melting pot. The thought to treat them with protection now for future preservation is mindful rather than being regretful later.

 

The television coin auctions do that stuff for their unknowing customers as a sales gimmick, and it works!! Just like P.T. Barnum said years ago, "there's a sucker born every minute"!! good thread!

 

http://www.historybuff.com/library/refbarnum.html

 

Good point. Neither circulating coins or ASEs were struck for collecting purposes in mind. But, it doesn't make it wrong or stupid to do so. They do make proof versions of these which ARE intended for collectors. I view ASEs as bullion, many do as collectors. Many view Kennedy halves as circulating coinage only, I happen to collect them. Watch Hoarders on TV sometime. People collect the stuff I won't even give away. I say, collect whatever makes you happy.

 

Yup!!!