Why do people slab bullion? In my opinion a ounce of gold which is slabbed should just be sold as a ounce of gold. Not with a premium for the slab. Am I thinking correctly?
This is a topic that has been argued heavy over the past few years on this forum and on many other forums like it !! There really is no great answer to this question though!! Gold, Silver and Platinum coins that are slabbed common already carry a premium!! For example the SIlver Eagle spot for an ounce of silver is in the 19.25 range but even unslabbed eagles commonly sell for 25-35 and proofs sell for even more then that. All i am saying is that ounce of gold or silver already holds a large premium before being slabbed is factored in!!
So basically they are not slabbing a random piece of gold or silver they are slabbing a COIN that already has a premium !!
Aside from the liquidity gained from a greater confidence in authenticity, I do not see much upside in slabbing what would otherwise be pure bullion.
The upside I see is that you keep the bullion from being smacked around. Wont necessarily change the value, but if you are anal and like your collection tidy and pristine, its a good way to go. Plus, the cert# is beneficial for tracking purchase date, cost, sold date, etc.
Proofs almost by definition are not bullion. Sure, some can drop to bullion prices at times, but they are a higher grade of manufacture than bullion. Most slabbed bullion I see are "rejects". They are only slabbed because someone sent a huge lot into the TPG headhunting for 70's, and the 69's and below are sold off as slabbed bullion, making a huge stinking deal about the slab, to tr to recoup costs. NEVER, EVER extra for slabbed bullion if the grade on that slab is not important to you. Do you fall for the snake oil salesman pitch that "slabbing adds $30 value to these". Its a lie, these are MS70 rejects not worth more than any other bullion piece.
I have two slabbed bullion coins, my one and only ASE proof and my one and only ASE reverse proof. I would love to get an AGE quarter-ounce proof, If I do, I would probably get it slabbed. It just makes these coins seem extra special.
I only have one silver proof ASE in a slab. It was offered at a VERY fair price and I thought it was pretty. It came with a cute wooden box and is suposedly a PF70: A well known member at CT (Doug Smith) recently mentioned that some ancient silver is surprisingly pure like the modern refined silver bullion coins. Because of the purity, they are much softer than USA 90% or sterling coins that we are familiar with handling. (Of course, this can hold true for both alloyed silver and alloyed gold). The slab provides protection of the soft metal. The slab may provide some additional assurance that the piece is genuine. The slab may provide more liquidity. IMO, the slab may provide some added value based upon these added benefits (or are these benefits free or countered by some negative slab issues?).
