What is the purpsoe of grading ASEs and the like?

So, why do people do this? Granted I am new to numismatics, but it just seems counterproductive on both sides of the transaction to have an ASE/Maple/Grizzly etc graded. I mean, these rounds are meant as a bullion investment into precious metals. It would seem that spending $40 for an ounce of silver, then having it graded for something like $25 just ups the amount of money you spent on your investment, which you should be trying to get as cheap as possible.

Second, why BUY a graded ASE, etc at a premium? I recently saw Kitco selling MS70 ASEs for something like $55-60. If you buy silver at over silver spot price, aren't you just making it harder for your investment to start making you money?

Perhaps I am just frugal, or I just plain and simply do not understand, but as aforementioned it just seems counterproductive either way you look at it. When I buy an ASE, I buy it for the silver, and the trust that accompanies the round. I guess what I am trying to get at, is that if everything goes to ****, and those of us with assets like precious metals, gems, oil, etc need to start using them to live off of, wouldn't you want to have MORE to use? Spending extra money to have it graded just means less bullion in your pocket.

Anyone who can shed some light on this for me, please do! I am eager to learn.

 

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If everyone thought alike, then there wouldn't be the need for different car models, different food processing companies, different clothing manufacturers, etc. etc. etc.

Chris

 

Some people like to collect ASE's for the fun of it and not an investment. I imagine the people getting them grading are hoping one comes out to MS/PF70. A 70 is generally worth a little more to the collectors. MS69 is for investing, MS70 is for collecting. That's my view in the black and white.

 

Competition and Measuring up

There is competition in just about everything. Some people want the nicest house, others the nicest car, and then some that want the most pristine and highly graded set of bullion. Many of them are competing to look cool on the TPG's website, or my set is better than yours.

I'm with you, I like to stack it for it's silver content and will pay small premiums for some of the cool stuff that is out there, but like most I want to pay the least I can.

To each their own...

:yes::yes::yes:

 

I honestly don't think you can really buy ASE's for bullion because raw or slabbed...they carry a premium over spot most of the time. That said, I don't understand why someone would submit a coin of modern commemorative quality (which I consider an ASE to be because all should grade 68+). But, a lot of people do. You can buy them in slabs for basically no premium over a raw example. If you want a slabbed example, there are plenty available...buy one slabbed. I personally plan on assembling a slabbed MS/PF69 set at some point...but I will buy them all in slabs.

 

It's not for me (I buy bullion as cheaply as possible and don't worry about how it looks).

But, any coin can be a collectible (even mass produced bullion), and getting it graded adds to that appeal.

 

Same reason some people pay or get big money for old toys in unopened boxes. I mean, what's the point of getting a toy if you're not going to get it out and play with it?

 

This is correct. If you have some patience and pay attention you can buy ms69 examples for about the same money as raw/ungraded bullion. I wouldn't expect you to find them at e-tailers or even coin shops, but they are there to be had.

 

Can anyone really tell the diff. between a MS69, & a MS70 ASE? I'm guessing the grading companies are the real winners in this--they must make big profits off of grading modern bullion coins......just my opinion.

 

Of course the TPG's make money off grading them, but they have business overhead just like every other business. There are people that can tell the difference between ms69 and ms70, and I'm sure when you check the registry sets there are some that are very proud of their rank. That's just the way it is. Nobody forces anybody to partake in it, it is by choice.

 

Some people believe that these graded coins will grow in value just like investing in a numismatic coin. Search this topic and you will find plenty of info on investing in graded bullion.

 

No modern bullion graded or not with a mint run of over a million will ever have long term value after the hype dies...To me even the mint run on the ATB coins is way to big to invest in as a collectible.

 

In many cases with modern bullion or commemoratives, it is very difficult to distinguish an MS69 and an MS70. I have seen MS69 ASEs that look perfect and even better than some MS70s. I have also seen some MS70 ASEs that are not perfect even to the naked eye. I only collect raw ASEs with nice eye appeal for this reason. I do own a 2001 Silver Buffalo PCGS MS69. I have looked at it with a 10x loupe and also under a high-powered microscope and can find no flaws. I have even showed it to several others who agree that it is likely under-graded. I would bet that if you took several 2011 ASEs and sent them repeatedly to a grading company (PCGS or MGC) you would get different results (MS69 vs. MS70) at times even if the same exact graders were used. I guess that an MS70 grade for slabbed modern bullion means that at some specific point in time several graders agreed that the coin was perfect. TC

 

If you look at the population figures, PCGS grades a lot fewer "70"s than NGC. I don't know why. So certain issues in MS70 or PR70 are worth a considerable premium, specifically low mintage moderns and 1/4 oz. PR70s. I know a fellow who was quoting around $750 for those, but only in PCGS holders.

 

Time will tell. I think high grade ASEs will continue to be highly prized. Someday the series will be discontinued or replaced by something else, and every ASE in existence will get at least a little bump up in value because the supply will be fixed but demand will continue to grow. A lot if ASEs are going to be worn or damaged or melted from their treatment as bullion, and the high grade coins that remain will carry at least some numismatic value. It remains to be seen how much.

And to comment on some other posts, I very much doubt that professional graders can distinguish between MS69 and MS70 coins with any degree of consistency. Some folks would say that there really isn't any such thing as MS70 if a coin is examined closely enough.

 

Some folks would slab a dog or a cat if they could......

 

mmmmm. slab of cat.

 

HAHA! Oh G, always with the jokes.

 

Why grade them - to get the highest graded registry set.

 

Even PCGS isn't perfect, every time, on every coin, altho they will tell you they are. Once it gets down to 1 or even 2 MS points, +or-, I say look at the coin, not just the # on the slab....occasionally the grading seems "whimsical".....