The 5 ounce bullion "America the Beautiful" coins are changing bullion's impact in the collectors market. Since a new attitude is evolving, will the perception that bullion is just bullion, change into high grade bullion becoming a collectible besides? In 2010, I'm sure there are fewer MS70 bullion coins in the market than the 5 ounce coin mintage being released. Perhaps we will see a collectors demand permanently spill over to these coins as well. Any thoughts?
Graded Bullion is possibly a fad started by the greedy HSN shopping channel to make profit off of other people's greed. Thus massive sales of gold and platinum plated state quarters and other crud like that.
People will collect anything if they are convinced that someone else might pay a premium down the road.
This is only my opinion and most others will disagree, but I think that as time goes on, graded bullion coins will command more of a premium than they do now. Frequently, the collectible that is most overlooked or despised when issued becomes the most highly sought by the next generation.
And yet, there are many who are gladly paying higher prices for graded bullion. I think value is determined by what people will pay.
Well put, Copper Head. There is a segment of the market that truely loves designs such as the ASE so much, that a perfect specimen may be worth 10x what a typical example used strictly for bullion purposes may go for. I personally am not, nor will I ever get into collecting slabbed bullion coins. But, to each his own. I also collect some wierd stuff that other may think is pointless.
Salty, you must be new to the party but graded bullion has effected the collector market long before the 5 ounce park coins were even conceived. Graded bullion has been popular in the hobby ever since they started slabbing Silver Eagles. Collector demand has already spilled over. You may be late to the party but you are on pace with your comments.
andrew289, I have never gone into collecting bullion. The silver and gold coins I own are primarily numismatic items. It seems to me that the 5 ounce silver coins are attracting much more collector interest. With current 5 ounce prices at what they are, the silver value seems to be less involved than the numismatic value. I have picked up one or two MS70 ASE's and PM had a lot more to do with it's selling price. I would say a 2 to 1 ratio in my case. The 5 ounce coins have more of a 4 to 1 ratio, and that's currently. It could even go higher. My thoughts were: Would this trend be permanent and eventually drag the other graded bullion ratios up to this level? Perhaps it would be wise to consider buying these older graded pieces while their pricing would be less.
I think the current hype over the 5 punce coins comes mostly from speculators and flippers (price gaugers). They see a feeding frenzy and are just milking it and every dolloar they can out of the collector population. The mint didnt do the colectors any favors buy cutting the mintage and creating a modern rarity. Now there is blood in the water and the swindlers are making their money on the latest fad. I see this 5 ounce thing running its course but in my opinion, I dont see it effecting slabbed ASE and AGE coin prices. I think spot price is driving that train.
I believe that the reason that the 2010 5oz ATB silver bullion coins have long term value is because the law authorizing these ATB coins was recently changed and 2010 coins will be the only coins of the ATB bullion coins series that will have the current physical dimensions. The remainder of the ATB Bullion series will be physically different. Therefore, 2010 ATB coins have not only a low mintage but they are the only coins in a large series to be minted to these dimensions. This is the things that makes coins collectible and valuable.
It appears that the saying "bullion is just bullion" applies only if the government doesn't do something to it (By accident or design). I think this will cause the MS69/70 pieces to maintain their collector value, until something changes the entire concept of collecting any item, world wide. Scarcity is the driving force regardless of the item. It is the reason why rocks shaped like the Madonna sell on eBay for thousands of dollars.
It may not seem like it has extra value, but if you sell it for more it does. If I were going to give you a Silver Am. Eagle for free would you take a raw one or a PCGS MS70? I'm not saying it is smart or wise, but you can definately sell it for more. Lack
The only good thing about slabbed bullion is that after the hysteria over the coins dies off, it's a good way to shop for PMs at spot prices with almost no dealer markup.
