Graded Bullion - Is It Worth More?

So gang, what do you think. Will you pay more for graded bullion coins (ASE, AGE, etc)?

 

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I would. I have. All of you "bullion is bullion" purists can call me stupid, I don't care. I'll collect what I like and how I like it.

 

I think they do. For those of you who want to say "bullion is bullion" you won't understand this, but ASE and AGSs ect have a numismatic premium and are highly collected. Even thought they were originally intended as bullion coins, they really aren't "traded" that way...and they are sold for way more than their spot value by the mint. They are more of a collectible coin than a bullion coin. Every other collectible coin carries a premium when graded...so why shouldn't these.

 

I don't have a lot of graded bullion, but, as rick said, if there is something I like and want (and can afford), I will pay more for it. I typically purchase 69-grade though because I don't purchase coins for re-sale, I have them for enjoyment. As long as the 69 coin is pleasing to me, a 70 is not at all necessary.

It's kind of like beer; every once in a while, it's nice to splurge a little and buy some Young's Double Chocolate Stout to enjoy rather than the ubiquitous Budweiser.

 

I think a rating scale for beer would be much more subjective than for coins.

There is no way I would ever rate Budweiser anywhere close to a 69.

 

As for the original topic, I would not pay more for a graded bullion coin.

I would pay more for a proof version of a bullion coin that is in good shape over one that is in poor shape, but it being in a slab is irrelevant. When I got it home, I'd probably break it out and put it in an air-tite.

 

Look at those TV coin shows. They spend a LOT of airtime pushing slabbed ASEs, they would seem to be popular.

Having said that, I will add that all my bullion coins are raw.

And largely dependent on how may beers have been "graded"

 

I think we have two different discussions going here. People who see bullion coins as strictly bullion and those who collect them. I think if you are a ASE or AGE collector, you don't see them as just bullion coins, or you wouldn't obviouslly be prone to shell out more for graded examples. Technically Morgans are bullion coins as the government required the mint to purchase and coin silver based on a percentage of the materials mined. Thats not currency law, but closer to bullion law. But, how many collectors look at a Morgan or a trade dollar as just bullion when trying to piece together an MS set? It would be foolish to do so.
Guy

 

Sorry, I misspoke. What I meant to say when I said "traded" is how they are originally sold. They are sold at a price well above spot value. Sure, many these days are being sold for melt...that is true of any silver coin silver being as high as it is. But, they are not being sold my the mint as bullion...at least not at a reasonable price.

 

I think a few bucks over spot is a reasonable price when you consider the cost of minting them and that the coin dealer needs to earn a small profit too. Add in a little bit of risk for the dealer that prices could go down before he can sell the last lot he bought from the Mint, and those few bucks are starting to seem a little small.

Or are you referring to the proof coins from the Mint that are sold for a premium? IMO - Those aren't necessarily "bullion" coins.

 

I understand what you guys are saying...but the current silver price is $26.84. However, on the mint website you can pick up a 2011 UNC ASE for $45.95. I know silver has been fluctuating a lot in recent months...but that is a little more than 10% over spot.

I could see $30, but $46 seems a little too much to truly consider these coins "bullion."

http://catalog.usmint.gov/webapp/wc...1&parent_category_rn=10191&top_category=10191

 

For value of 1/10 oz AGE or more, I think slabbed is worth for the ease of resale...and "genuine" or MS-69 is just fine for that. I don't think slabbed common ASEs are worth any more...except to a collector, and then only in MS-70.

 

Yes, but that is for an uncirculated ASE in a collectors' case. That isn't how the bullion ASEs are sold. Why a person would buy one of those, just to tear it out of the OGP to send it off to be graded and slabbed is beyond me.

Bullion ASEs sold to dealers through their bullion coin program can be had for about 10% over spot. Why a person would have those graded and slabbed is also beyond me, but to each their own...

 

Graded bullion is worth more because it is authenticated by a TPG. The grade itself doesn't matter. A mint state bullion coin has the exact same bullion value as circulated bullion coin, provided it is not so heavily worn as to reduce the weight. But with all the counterfeits going around these days, it is incredibly valuable to know that that Maple leaf has been examined and authenticated by an expert, encapsulated and stamped with that little hologram.

I suppose it also represents value to bullion coin collectors, but that's a whole different story.

 

The mint does sell a collectable versions of bullion coins and probably could see them being graded but the bullion coins are bullion coins. How does grading work? You buy a monster box and some are better than others even though they all cost the same price?

 

I forgot the mint is making those "bullion" UNC issues along with the normal "collector" UNC issues now. So, that's my bad. The only example I have of the "bullion" coin is in my 25th anniversary set...so they slipped my mind.

 

I see graded bullion in the same light as "collector sets" of Presidential dollars. Its value has already been established - it's just wrapped in a pretty box.