Graded coins - when will the market crash?

Since graded coins seem to be all the rage right now, any idea when this trend will come to an end, or will it? When it does come crashing down, how far will the value of the "perfect" 70 graded coins fall? Will the day come when people are extracting their coins from the slabs?

 

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I think they are only the rage w/uninformed, unexperienced collectors. It comes crashing down when the supply of disposable income ceases to exceed the demand of the accumulators. The day is already here though ~ I know of many collectors (myself included) who will extract coins from the slab because the coin doesn't match the grade - most often I do this with the third world that were actually graded right but don't earn the respect or 'price command' of the top TPGs. But again, that's because I bought them at their true grade or less ~ not at the label grade price.

 

Rages are hard to predict! At SOME point, things will at least calm down. As ConGal said, it depends on disposable income. do people have dinaros to spend on coins at the end of the month? And if things are going really well, do they have mucho dinaro to buy MS-68 examples - by the way, I would avoid MS-70 examples at all cost unless you have a financial advisor who knows what they're all about and NOT.

The market will "calm down" or go down at some point. Prices probably won't drop much, but it'll be harder to sell the coins. That's the typical problem with collectibles. Oh sure, catalog value is $100 - well, good luck finding anyone who wants one at a $100 or even someone who wants one at any price. so it's more of a supply and DEMAND thing.

Funny thing is, I'm guessing coins will be a "better" investment than they were in years past. In past years, it was still a collector's market - now that has all changed. The Internet, etc. But with each wave of "investor frenzy", a few of those people stick around and it adds to the pool of coin collectors (and investors).

So the general outlook is good (at least that's what my Ouiji board says right now). There will be some hiccups and maybe a period of nothing, but if you're not in a hurry, it'll probably be ok.

 

So the general outlook is good (at least that's what my Ouiji board says right now). There will be some hiccups and maybe a period of nothing, but if you're not in a hurry, it'll probably be ok.[/quote]


You are basing coin advise on a Ouiji board? That's just plain silly. You are leaving out tarot cards, horoscope & reading tea leaves. But the surest answer is to just ... 'flip a coin' ... and I think we all have one or two of those around.

 

lets see it crashed in the late 80's early 90's once so another great big crash isn't far off.

 

As long as people buy coins via the internet, slabbed coins will be the way to go in my opinion. Your other question, will people take out of slabs, I have freed many coins from the confines of their slabs.

 

I think coin prices in general will continue to trend up, but not in a straight line. Slabbed coins are probably here to stay because the do-it-yourself attitude is practically dead, and it is easier to buy a grade than to learn to grade. I'm guilty of this myself with unciculated coins because the price discrepancies between some MS64 and MS65 coins [for example] are enormous. I think the 70 craze will go away as soon as people realize they've been had, but slabbing in general appears to be here to stay.

 

I agree, especially the silver collectors coins such as Mercury dimes, Barber quarters and even the pre-64 Roosevelt dimes and Washington quarters. Now as for the slabbing, I think it is very nessisary sometimes because with older coins especially, it gives buyers an assurance of authenticity since the major grading services will only slab authentic coins, but the modern slabs graded MS70 aren't a very good value because the demand for those are starting to peak, especially the new state quartes graded MS70 by the grading services.

 

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I was under the impression that slabbed coins were just coming into vogue in the late 80s...?

 

No matter what the coin may be, a 70 grade of that coin will always be worth more then the 66 or 69. Most grading companies offer to pay for the coin if it is not Authentic. With so many fakes coming from China I think is wise to buy graded on any coin that cost more then 100.00 or so

 

Do slabs really offer that much protection? I would think it would be just as easy, if not easier, to fake a slab (than to fake a coin).

 

first off if you are going to invest into slab coins stick with PCGS and NGC those are the top two resepected coin grading companies and as for the slabs going away they wont. they are here to stay as long as there is a repitable company to grade them like NGC or PCGS the older generation of coin collectors dont seem to like slabed coins and as bad as this sounds they are dieing off and the newer generation is taking over and they have grown up around slabs, the MS-70s are not really a joke either NGC certifies that a coin is MS-70 if there is no nicks or scratches visable at 5X maginification and of course the coin has origional surfaces and so on. i would suggest that slabed coins would be a better alternative to raw coins, as long as you stay away for the off compnies aka SGS Hallmark and any other crack out company. also i forgot to menchen earlier ANACS and ICG are decent companies I wouldnt send my coins to either of them especally since ANACS has had problems with counterfit holders, their grading is decent but not near as good as NGC or PCGS. If you are a member on the ANA you can send your coins to them and to sent your coins to PCGS you have to be a member and that cost $200 but you get 8 free submisions with that.

hope this helps for whomever reads it. message me with questions:smile

Casey T.

 

slabbing

I think slabbing is important, especially via the internet. I sold a colonial coin that is very commonly encountered as a reproduction. Since I had the coin slabbed by NGC, the coin attracted much more attention. Though the coin didn't sell for red book value, I got more for it on Ebay than my local coin shop was willing to pay me for it.

In a nutshell, I think slabs make a good security blanket for online coin shopping, which is quickly becoming the best place to buy/sell coins. They serve that end very effectively (top grading companies).

 

I find this very intresting not to knock hulkster but what he said about how they did not bring Red Book value, No coin dealer will pay anything close to red book for coins everyone in the coin business uses the greysheet they issue a new one weekley, as where the red book is issued annualy and even then the prices are printed in the previous year. now im not trying to knock the red book i use it every day but not for prices i use it for mintages to see if one coin is better than another or for the pictures of double dies and so on it has its uses just not for an approxmate value of a coin.

 

You'll know along with the rest of us the day after it happens!

 

slab ,or not to slab

As to the market on slabs crashing; lot more volatility on speculative items. Don't forget-slabbing was totally a product of dealers trying to get more profit out of the same old coins(and also a nice little buisness for the likes of pcgs & etc.) That said,the moral of my story is you better know your coins well before you buy them, slabbed or not. Coin grading is subjective,no matter who does it! So the old rule of thumb;If it doesn't look good to you, don't buy!(no matter how high the grade.) Authenticating is good, raritizing is not,so is slabbing a neccesary procedure? My personal opinion is the have'nt done the collecting community any real service with slabbing,they have just made another market for speculators/"investors". But, hey more money to throw around the coin world,huh? And if anyone can get any good out of the slabbing more power to ya!