Graded coins - when will the market crash?

That's just plain bull!

If you are relying on the listed grades to buy non-top tier slabbed coins, then of course shame on you.

But, why should I be ashamed that I recently purchased an XF coin, for an XF price, in a PCI AU58 slab? Incidentally the pieces of the slab were at the curb on my next trash collection day!

You are obviously unaware of the principle "Buy the coin, not the slab", or you wouldn't keep criticizing those of us who do exactly that when we find a coin appropriately priced for its actual grade in a third tier company's slab. Please stop attacking those of us who are experienced and confident enough to ignore the labels when buying coins.

 

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You know Griv,

I hate the SGS, GEC and all of the other slabbers as much as anyone but I have to agree with hontonai on this one.

First, I don't think these companies will disappear overnight as much as I'd like them to.

Second, not everyone that will buy one of their coins is an idiot. I haven't honestly done so yet as I buy the vast majority of my coins raw. However, IF I saw a coin overgraded by 20 points but the price was for a coin 30 points under that grade I would buy it and toss the meaningless slab.

It's kind of like cherrypicking.

 

sayings exist for a reason, like the one that goes "buy the highest quality coin you can afford." the value of such a coin will never diminish, regardless of price.

value and price are not the same. a slabbed coin has more value compared to an unslabbed coin of the same grade. it has been assigned a value that is higher because an authority has declared it's grade. the consumer has more faith in the grade and thus the coin is worth more. the price of the grade might change, but a slabbed coin from a top teir slabber will always demand a high price in the market.

if you buy coins from the lesser grading companies - PCI, ICG, et al, than the value will be less since those slabbers are not seen as leaders or experts in the industry by the consumers. the top teir slabbed coins will always command a premium because they are assigned more value.

there will be no crash - a slight price correction will occur once the US economy picks up and the dollar rebounds. i'm far more worried about the value of the dollar in the world economy than the price of my coin in my collection.

-steve

 

I don't think that a slabbed coin has more value than a raw coin. When I look at price sheets, I don't see a column for MS-68 raw and MS-68 NGC. The value of the coin is set by its grade. ("buy the coin, not the holder") but right now people are willing to pay a premium for coins in slabs, esp those from top tier companies. That premium does not really add any extra value to the coin itself. If there is a slab market correction, or confidence in the slab market drops then people will not be willing to spend as much of a premium on those slabbed coins, but they will still pay a certian value based on the coin inside. Basically no matter what slab the coin is in, the value comes from the grade of the coin, not the slab.

To be honest I do not buy too many slabbed coins. I just bought a NGC PF-68 Bicentennial Quarter for $14. That's a little above list, I think. I was more comfortable spending the extra money because is was in a slab. I'll admit it, but I know that the true value of the coin is closer to $9-10.

Of course, I'm not really worried about a crash, or market correction. I buy coins to enjoy, not as invesments.

David

 

are you going to pick the PCGS or the SGS slab if they are graded correctly and are identical (flaws and all)?

-Steve

 

Sorry about this but that really struck me as funny.

I think most would go for the PCGS hands down but we don't have to worry about it.

SGS HAS NEVER GRADED ANYTHING CORRECTLY!

Once again my aplogies.

 

and thus i rest my case on the value of top teir slabbers - there is perceived value in the PCGS slab that is not attributed to the SGS slab. the same could be applied to an coin in a lesser regarded slab. PCGS is more trusted than the guy selling the raw coin for most and thus there is value in the graded coin.

it's all about perception.

-steve

 

Well I would certainly agree it's easy to counterfeit a slab if the buyer doesn't even look at the slab !

 

Interesting point. Check out CDN. It says right at the top "wholesale prices for accurately graded coins - certified or raw".

They do have different prices for different certifications in the Certified Coin Dealer newsletter (ANACS vs. ICG).

 

Okay, obviously my post was a little misinterpreted. My fault. I had hoped that I made it clear that knowledgeable collectors like hontonai can buy whatever, whenever as they have the experience to find a diamond in the rough. I meant that if you are an inexperienced collector then you better stick with PCGS or NGC otherwise you will probably get burned. I certainly never meant this as an insult so my apologies to hontonai.

I also want to distinguish the traditional coin industry from the modern coin industry. Clearly the Mint has generated so many new coins in the last 20 years to segment the marketplace. My expertise is only with the modern coinage and any remarks I ever post have NOTHING to do with the non-modern coinage. Frankly, almost all of my experience and grading is in the MS/PR66-70 so forgive me if I sometimes generalize.

 

and which has more value in a resell - the slabbed or the raw coin - lowest common denominator rule applies.

-steve

 

just so you know there is such thing called the blue sheet its for NGC and PCGS slabs and its a price line for them the grey sheet dosnt show slabbed coins

 

umm mine dosnt i just looked (but i have an online subscription so maby thats it) or you could have some different sheet? i dono Im not calling you a lier i just dont have them in mine i have to use the blue sheet

 

I trust current eBay prices for modern slabs over grey sheets or grading company suggested retail pricing. The coin will sell for what the market will bear. Of course it never hurts to have a guide of some sort.

 

Check out CDN. It says right at the top "wholesale prices for accurately graded coins - certified or raw".

Coin prices are the same for sight-seen trades with knowledgeable buyers and accurately graded coins.

It seems to me that the big advantage with slabs is sight-unseen internet trading. (though I never buy without excellent photos).

Slabs will go away the day the internet goes away... never.