What should be expected for the condition of bullion coins

I have one other question regarding bullion coins.
I'm new to this and intend on buying some Gold & Silver bullion coins.
My question is: what should be expected as to the kind of condition of any such coins?
Bullion coins ( Eagles & Maples ) are usually listed as BU, but as we all know, there can be substantial damage with that rating.

Years ago I bought a bunch of Morgans in brilliant BU condition. And they were exactly that, BUT, some where very badly “bagged scarred”.
Is this pretty much the same situation with the new bullion coins?

Thanks for any replies

 

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Agreed. I would expect coinage that is in a condition that has no numismatic value...only bullion.

 

I agree with Peter. If the coin you are buying is effectively valued at melt value, there should be no expectations of premium condition, only authenticity. Having said that, most come in high grades. If condition is an issue for you, simply mention you want pristine examples when you order, or go to a show to purchase and pick them out in person.

Personally I like the "double play" of metal and coin, preferring to buy things like Mexican 50 pesos, AU pre-34 US gold, etc. Heck, I even bought some ancient hunnic coins near melt once.

 

I believe you should get the quality of coin that is advertised, and you should understand the terminology. BU does not mean pristine and perfect, it means that it's brilliant and uncirculated.

 

There are too many sources out there offering nice BU bullion coins. The coins that are damaged, cleaned, unattractive, milk spots, etc. often sell for below melt. Expect to get what is advertised. Ask before buying/bidding. Offer 10% below melt for unattractive junk.

 

I have a hard time accepting this. Most bullion that I see sells for a slight premium above melt simply because you get the physical metal in hand.

 

Show me bullion coins below melt, and I'll take them.

 

Best way would be to get to know your dealer and ask for damaged or imperfect rounds. Trust me, those people buying only a few, always avoid the spots or imperfections. What am I, the only one that heard of getting unattractive bullion for less than melt? You guys should get out more often.

I don't know, first couple of auctions with milk spots show this kind of potential...

 

I looked those listings up... $5 shipping fee. Not quite under spot ;-)

 

That's the key.

 

A great topic! Best I can find is MCM on eBay at about $3 over spot with free shipping. For silver that's almost 14%, not a "small" premium.

Where can I do better?

 

It seems most of us are still waiting to see where we can buy coins for 10% under melt, after shipping costs are included. Can you find any for us?

 

Like I said...

I showed you auctions that end below spot. Not everyone is used to dirt cheap shipping, especially cross-border. There are some kind of ebay fees, paypal fees and postage fees to consider, aren't there? You feel that the above auctions are inaccurate, first find some damaged or spotted rounds at a local dealer or seller. Then offer a dollar or two below spot. It's easy in Canada, we have lots of unattractive bullion produced by the RCM. Nice to know we can still unload ugly on the US consumer. From your reactions, it appears they'll buy defective at full pop. Congrats on that. I know what I want to pay and what to offer, when the product is defective. Ugly coins are tougher to unload. Collectors are picky. There is a large bullion collector market.

 

The auctions you showed us sold for ABOVE spot. I am not talking about how much the seller ends up with after all fees. I am talking about how much total the buyer has to pay, including shipping, fees, etc. You have yet to show one place you can buy coins under spot.

 

Try communicating with sellers and dealers that have problem, spotted or damaged coins. In person is always best, you avoid shipping and fees. Well, unless where you are, they all sell out of those coins at full pop. Try a different area code, where the conspiracy theories, doom and gloom and physical metal propaganda isn't as prominent.

 

Makes sense, doesn't it? Those same dealers, the ones that buy silver at 50% below spot from the public, can probably afford to drop a dollar or two below spot on damaged goods. If Americans want those goods at full pop, expect to have your market saturated with spotted Maple Leafs.

Some guys are obviously living in a different world. I'm in the one where silver and gold prices have tanked and will continue downwards. Unloading commodities at a dollar or two below spot is not even a shock to most.

Might be a big deal if you're surrounded by doom and gloom or only search for deals on-line. I've had offers, but, I don't buy defective coins and I do not hoard unattractive crap that would discourage a future sale, especially with prices teasing us lower and lower.

 

That would be no!

 

...and pay rent, payroll, taxes, utilities, etc. Oh, I guess they just wanted to buy under spot but not have to pay all of these expenses though, huh?