Hi there, I'm new to CT and precious metals in general, so I wanted to get a couple of pointers from the experts. First of all, I'm rather certain I want to invest now, even though a little late, due to inflation (perhaps even hyperinflation :rolling risks in the coming years, but please object and tell me if you feel that I am wrong (I figured if Central Banks themselves were now net buyers, that was a good indicator too). Anyway, I would like two buy a couple ounces in bullion form, and even though I've seen it said on this forum to stay away from slabbed coins at first, those were the ones I was most interested in. Since I don't want to pay an annual subscription fee to PCGS, I was wondering what would be so bad about buying slabbed coins (I also like the beauty and collecting aspect of this form of gold). To be specific, I was looking at an MS-68 (PCGS) Panda and PF-70 (NGC) Buffalo from APMEX. I know NGC isn't preferable, but PF-70s seem rare out there, especially from PCGS. Any tips, especially on years/grades most likely to appreciate in the future? Thanks
First off, WELCOME TO THE FORUMS!! My opinion is to stay away from the MS/PF 70 craze and the premiums. Bullion should be purchased close to melt, and a 30% or premium because the coin graded 70 and not 69 is just silly. It is virtually impossible to tell the difference between a 69 and 70 in real life. Other than that, purchasing a slabbed 69 or 68 usually won't charge much of a premium above raw, so going that direction is just fine with bullion and you will always be able to resell it easily when slabbed. Enjoy!
Welcome to CoinTalk! I always tell people that the best silver to buy are American Silver Eagles. They sell for a modest price above bullion value and you really can't go wrong buying them. They are also the easiest silver to sell, which is equally important for investing. Regarding hyperinflation, I think the folks who talk about it are "hyperinflating" the risk. I think there is probably a 50/50 chance that there will be deflation or hyperinflation. But either way, silver has so many growing uses and is so difficult to mine in quantity that it will probably turn out okay anyway. Besides, someday the Mint will discontinue the American Silver Eagles and the coins might start to accrue some real numismatic value as well because people will still buy them but the supply will be fixed. Other people here have different approaches. Read them all and choose what you are most comfortable with.
Johnny- Ah, alright, perfect. My whole reasoning for buying slabbed was to resell easily (well apart from preserving the coins well). Also, I was wondering how easy it is to sell gold when the time comes. Is selling back to APMEX a better idea than a bullion dealer? Don't those 70-grade coins sell better than a 69 later on, too? Cloudsweeper- I was more interested in gold than silver, since I know little about the latter. Is the potential for production shortage large enough to warrant some silver purchases, just to diversify? Does silver appreciate in value in similar patterns as gold (inflation, extreme situations like depressions)? Thanks a bunch for the quick answers guys, great community you have here.
Welcome to the forum. You should buy the slabbed bullion coin that you like. PCGS is IMO the best but NGC is a close second in my opinion. You were asking the question of.............What is so bad about buying a slabbed bullion coin? The general answer is that generally speaking, buying a slabbed bullion coin means that you will pay a much higher premium over spot as opposed to buying a raw bullion coin. If you are thinking about a Panda, then buying a PCGS or NGC certified slabbed Panda is IMO a much better choice because of the bad reputation of Pandas getting faked. Buying a slabbed Panda from a reputable dealer such as APMEX (or your local dealer) will protect you since it is certified by PCGS or NGC. I currently I do not have any slabbed bullion coins (yet) and I do not see anything wrong with buying a PCGS or NGC graded slabbed coin if you buy it because you truly like it. You should buy the slabbed bullion coin that you like but you have to keep in mind that you will pay a much higher premium for it. Buying an MS-70 slabbed coin just means that you are paying a "perfect" premium for a bullion coin. You also have to keep in mind that there is that possibility that MS-70 graded coins may not see the future appreciation that people might expect if NGC and PCGS keeping increasing the number of MS-70 graded coins on the market.
The problem is that currently the market places a large premium on 70s(or at least PCGS 70s). Paying the premium is a big risk imo, since it is quite likely that someday people will realize that there is virtually no difference between a 69 and a 70 and that premium will vanish when you try to sell.
Like was mentioned, you're wasting money buying MS70 bullion, especially if it's for investment reasons. I would recommend numismatic gold, or non-bullion. The reason I say this is two fold....first you can buy slabbed one once gold coins for close to spot for a wide range of dates and designs, and second you have a piece of history instead of a piece of 30 million, so even if the market takes a dive it still retains a premium over modern bullion for the fact that it has history. There aren't any great deals on gold right now, which is the only downside. Good luck! Guy~
Thanks for the answers, guys. One last question, what is the best way to prevent or at the very least slow down the tarnishing process for silver eagles? I plan on keeping them in their original (hopefully unopened) tubes, inside a larger, airtight container so that I can place something like silica gel packs to absorb the moisture/sulfur in the enclosed volume. Originally, this larger container was going to be a Ziploc, but I fear those too release sulfur. And yes, I know tarnish doesn't deteriorate bullion's value, but I just like coins clean.
Products from Intercept Shield are designed to absorb sulfur before it can react with your coins. Haven't heard of sulfur in Ziplocs, but there is a great deal I don't know.
Ziplock bags do not contain sulfur or any corrosive product for coin metals. However, they tend to allow gas in and out as much as air-tites or slabs. Toning can occur.
