Do slabs make bullion coins more valuable?

Hello folks - I've been buying the US $5 commemorative coins for a while now, always at the lowest price I can find, and usually they just come in a slip cover, or maybe in the box with a COA sometimes, but I just got one from SD that came slabbed by PCGS and graded MS70. Does that help the value above bullion value? thanks in advance!

 

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Hi Tracy and welcome to the forum.... That had been a hot button issue of late. I think some collectors out there may put a premium on a slab. Then you have guys like me that regard bullion as just that. I won’t pay extra for fancy packaging myself. But if you know the grading scale, MS70 is perfect, so it doesn’t get any better than that..... But I’ll bet you will get answers both ways.

 

Yes, normally it will add mores dollars. That said, there are people like me who don't care much about slabbed coins at all especially bullion, so it could go either way depending what it is and who's buying.

 

To some buyers the slab gives them more piece of mind its real. Also, since its a commemorative the fact its 70 might increase value. A commem is not the same as an AGE or similar. It also have collectors buying them.

 

I was just think about this earlier . " Buy the coin Not the Slab " isn't that what we are taught ? That's why I don't mind buying "raw". I don't know why people go all out looking for graded coins unless it's a very counterfeited coin .

 

A slab from a trusted TPG reduces risk to some degree. Personally, I like slabs for the protection they provide. If I have the choice between a raw coin or one slabbed by PCGS/NGC/ANACS (at the same grade/price), I always choose the slabbed coin.

 

If you become accomplished enough at grading you can do your own slabbing. It will not add any value to the coin but it will provide protection.

 

Can you consistently tell the difference between ms69 & ms70?

 

I can not. especially on bullion ASE. I got the book "Making The Grade" but have to reference it quite a bit. That one mod told me a few years back he can look at a coin and grade it in less than minute... consistently, get it spot on.. I may mess up his initials I think GDJMP. When I first applied for member ship here I got several reprimands from the Mods but quickly learned the seriousness in this forum about this hobby... lucky I didnt get the boot, My mouth got me fired three times but then again my mouth got me back all three times too.

 

69/70 is a new, weird deal. I think most people who state collectors should learn to grade they are referring to all other grading, not ultra high modern coin grades.

Thing about grades is you need to know GOOD graders will disagree with each other. There is no universal "right" grade. Its not quantifiable. The TPGs learned this when they tried to program a computer to grade Morgan dollars and it utterly failed.

 

I failed to mention I can't tell the difference between ms69 and ms70 and I don't know the Voodoo incarnations that are sometimes needed to tell the difference.
OTOH, I know collectors who only buy graded ms70 coins. When I started buying gold coins I only bought them directly from the Mint or graded coins.

 

I wanted to be one if the few people with a "perfect" First Spouse collection. That can't be done that with MS69 coins.

 

I wouldn't pay extra for an MS-70 since I also can't tell the difference between 69 and 70.

 

Absolutely not. I was more or less inferring up to those grades. I'm sure even the TPG's get it wrong quite often.

 

did you get them all unc and proof?

 

Yep! I had a thread running for a few years on CT as I received my coins from the Mint. Originally, I was trying to finish two sets, but rising gold prices forced me to cannibalize one set to finish the other.

 

i collected most of the unc because they are low mintage

 

I was conflicted. I liked the UNCs for their mintages and the Proofs for their appearance...so I pulled my belt tight and did both.

I took a lotta criticism for paying a 25% premium for "bullion". They used the American Arts series as an example of bullion that don't trade at a premium. Who knows...they may be right, but it was something I wanted to do and now my family has a "Strange Inheritance".

I posted pictures on CT as they arrived, but can't seem to find them. Here's one I posted in 2011. @jaceravone gave me his 2007 four (4) coin display box. This was a special display box that was discontinued after the first year (2007).

I used the box Joe gave me for a Liberty proof series display. The 2007 capsules are smaller than the other years so I had to get 2007 capsules for the Liberty coins...so they would fit in the box.

 

As far as I’m concerned a slab adds value solely to do being in a slab and protected.

As for MS70 coins I think they are overrated.

I don’t think 95% of coins collectors could consistently identify a raw MS70 vs a 69 if they were both cracked out of slabs.

Usually I will pay about $20 more for a slabbed coin just because I like slabs for protection.

 

It usually does -- but that doesn't mean you want to buy mass-produced coins at the MS70 level as you pay a huge premium over the bullion value.

Check the prices of MS69 coins -- just a notch below, but the price drop can be substantial.

And of course, if you are buying DOZENS or more of a particular type, no need to have most of them slabbed and graded, like a silver or gold bullion collection. Because if you are buying something for pure bullion reasons, then you have a premium to overcome in the future if you decide to sell and realize a profit.

I buy silver commemorative coins but they are probably only 5% of my total silver investment. I buy them because I want a few in slabs and I want a few graded 70 or 69.

But not all silver !