Looking thru auctions on eBay something came to mind and I started to wonder... I see large numbers of, for example, 2012 $1 Sacagawea coins slabbed by either NGC or PCGS and graded PF/PR 69. These are all SF mint coins. I know there is a cost to get them slabbed. I do not believe you can buy single S Mint proof coins - can you even buy only a Sacagawea (even in bulk)? Or do you have to buy some sort of set and then break it apart? So I'm wondering....how much does it cost to put together each of these slabbed Sacagaweas? The auctions mostly start at $0.99 (not unusual for eBay), and many offer free shipping. I'm wondering how slim are the margins on such a sale??? Hope this question is appropriate here.... Thanks!
For the general person, a coin like that at PCGS or NGC would cost about $14-15 to grade and slab. I'm sure there's discounts on multiples, especially if you're a high volume dealer, but since I'm not, I can't answer exactly. I've asked questions about slabbing things like ASE's, and in those cases am now convinced the best option is that if I want any slabbed coins like that, just try to find -69 graded from dealers or off eBay, as it'll cost you more in time and money to slab your own.
Yes, they're breaking apart sets. They're not paying as much as you or I per coin to get them slabbed. And while there may be a slim margin on the PR-68s and PR-69s that they get back, the PR-70s are where they make their money.
OK say I'm an authorized TPG submission dealer. I buy 1000 2012 proof sets. Look them over and pull say 300 that I think have a good chance of getting PF-70. I send them in as a bulk submission and as long as say 70 of them actually get 70 I can get the whole batch slabbed for $8 a coin or $2400 total. If I get my 70 70's I sell them off at $50 each and I make $3500. I have $1100 profit and 230 slabbed PF 68 and 69 coins that I blow out for $5 each. Even after selling all of them at $3 apiece LESS than my slabbing cost I still come out of the deal with a Gross profit of $2250. And I still have 700 2012 proof sets and 300 sets wher I can sell of the singles. And in fact I can do the same thing with the other denominations sending in bulk submissions of pieces I think have a good chance of making 70. Do it with each denomination and then take the leftovers I don't send in and assemble as many complete sets as possibly and blow those out as well.
Are they also able to get discounts on the original proof sets as well, or are they paying the same as average Joe?
... and 69 or 70 is often at the whim of the tpg rather than a strictly enforced technical delta between them. Better ensure your relationship with the sales and marketing group is firmed up before ponying up hundreds of coins only get see 1 or 2 come back as 70's.
Thank you - these replies have been very informative. With modern releases, is NGC or PCGS considered the more "leniant" TPG service, yielding more 70s?
What some dealers are doing is buying proof sets in bulk. Removing the coins and submitting them to the TPGs, gambling that the majority will get the perfect 70 grade on the label. The 69 grades are actually their rejects that they're selling to make what they can on them. Not sure that either is more/less lenient with the 70 grade. However, grading coins a 70 is really marketing fluff for dealers to ask higher prices. A 69 looks just as good as a 70, and there are few people who could actually tell the difference between a 69 and 70 graded coin. I know that I couldn't tell the difference.
I know of at least one big volume dealer who gets them slabbed for just $4 per coin on the bulk moderns. He normally sends in at least 500 at a time though.
From what I hear, you missed one step. You tell them not to slab anything below 69. So long as 40% (not sure about this number, but I am in the teritory) get slabbed, you still get your bulk rate, but you only pay for what got slabbed. I won't pretend to know the resulting numbers, but you save at least $3 for each 68 that does not get slabbed and probably get $6 for the 69's.
I suggest that you quit making unfounded claims, especially when it involves someone trying to learn. Chris
