70 grade 2017 Gold American Eagles Question

Discussion in 'Bullion Investing' started by Tommy83, Jan 19, 2017.

  1. Tommy83

    Tommy83 New Member

    I bought some new 2017 gold American Eagles. They arrived the other day and I am pleased.

    Today, I bought a 2017 PCGS MS 70 gold American Eagle for an attractive price over spot. I’ve never bought graded coins for numismatic purposes, but I found myself buying one today (good price). I’m new to buying graded coins so excuse me if my question sounds elementary, but…

    The new ’17 eagles that arrived early this week have very minor imperfections and probably would not grade at 70 (though I am no expert). That is fine. Maybe just a small sample size on the ones I received. I’m curious if these ‘17s are reviewed before shipped to customers that ordered them pre-sale. It just seems odd to me that there are already 70 graded gold eagles out there for sale. Does the mint and/or any of the brokers look at these coins before shipping them – coins with very minor imperfections sent to pre-sale buyers without grading and the best looking coins are graded by PGGS so that they can sell them for more should they grade at 70?

    I’m just curious as I’m a little surprised to see 70 grade coins available for sale only a couple days after the gold eagles were shipped out.
     
    GoldFinger1969 likes this.
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  3. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    It's my guess that many of the big dealers, including the TV shows, will advertise 70's for sale weeks in advance of even getting them from the grading services. They are hedging their bets that the law of averages will produce a certain number of 70's in every large submission.

    Chris
     
  4. Garlicus

    Garlicus Debt is dumb, cash is king.

    When buying graded Silver and Gold Eagles, be aware that for the most part, they are just bullion and the added cost of purchasing a graded coin may not be worth it.

    For the person that you may someday sell your coin(s) to, the "assurance" that the coin is genuine could be a reason to buy a slabbed coin. That being said, I would only recommend a coin graded 70, and that the premium not be much over the cost of an ungraded coin. The price difference between a 69 and a 60 on bullion coins is slim, thus the reason to buy a 70, where there is a larger jump in price, if buying slabbed. And forget about First Strike or Early Release designations. I, and many others, simply view that as a money grab by the grading companies.

    When buying silver, try to buy in bulk to reduce the overall premium.
     
    Santinidollar likes this.
  5. baseball21

    baseball21 Well-Known Member

    The big boys send in monster boxes or pallets basically and assign a minimum grade. Anything that doesn't meet that comes back raw. With the quantities they deal with barring a surprise year or product they can guesstimate about what the 70 percent will be around.
     
  6. Wayne Hardin

    Wayne Hardin New Member

    What about all the "Special" low population coins? I'm new to buying silver, and have just bought a 2016-W Burnished MS70 and PF70 John Mercanti 1/1000 PCGS for $250
    What about "Signed by Engraver" type coins? I'm new to buying silver. Went in feet first with purchase of a set for $220. PF70 and MS70 2016-W John Mercanti, 1/1000 pop. I'm also considering a Moy MS70 FDI 2016-W 1/300 pop for $190. Am I totally gullable? Or are these graded (PCGS) coins a good buy?
     
  7. myownprivy

    myownprivy Well-Known Member

    Graded coins are silly
     
  8. mynamespat

    mynamespat Well-Known Member

    I'm not saying if these are good or bad purchases- only time will tell. However, if you look at the sports memorabilia collectable market of the 70s-90s, there is a strong resemblance from there and those coins you mentioned. Now-a-days, signatures of famous stars from this period can be purchased for pennies on the dollar compared to their peak. Top value pristine rookie cards are worth a buck or two. I believe the term for these items are manufactured collectables which, historically, rarely maintain the premium from original purchase much less increase in value.
     
    Garlicus likes this.
  9. Tommy83

    Tommy83 New Member

    ^ That is not a good parallel. There is a tremendous amount of fake autographs and sports memorabilia out there. Baseball cards went commercial and a lot more were produced.

    Gold cannot be faked (well) like a Joe Namath autograph. It's totally different.

    It is all about supply and demand. If we go into a currency crisis, the premiums on the graded coins will drop substantially, but otherwise people will pay more for items in shorter-supply (70 grade coins, proofs, etc).
     
  10. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

    "Signed by Engraver" adds nothing to the value. When you go to sell, you'll be treated like you're selling bullion. The only person that may find value with what you have is a fellow collector of such pieces and slabs.
     
    Blissskr and mikenoodle like this.
  11. mikenoodle

    mikenoodle The Village Idiot Supporter

    are you collecting coins or slabs? That's what I always ask when considering buying a slabbed coin.

    Concentrate on the portion that you want to collect more. If the coin is what you want, then buy a great coin regardless of the slab.
     
    Last edited: Jan 31, 2017
  12. GoldBug999

    GoldBug999 Well-Known Member

    I agree - the beauty and value is in the eye of the beholder.
     
  13. Insider

    Insider Talent on loan from...

    Please explain why you think that is the case? I see you are a new member. WELCOME to CT. :happy:

    For example: IMO, some posts are silly. That's because in most cases the poster is uninformed and is not qualified to add anything of substance except a personal opinion without anything to back it up.

    IMO, so far your post is one of the silly posts. I believe you are much better and more informed than that. That's why I welcome the reasons for your beliefs so that you might change my open mind and desire to learn.
     
  14. baseball21

    baseball21 Well-Known Member

    You don't have to choose between one or the other, wanting a certain slab doesn't make someone any less of a coin collector if that is how they choose to do it. Some people do it for the presentation value, it's no different than picking a display case or album
     
    Insider likes this.
  15. Blissskr

    Blissskr Well-Known Member

    You'll likely never recoup the added premium you are paying for the supposed 'value' of those signatures when selling. Unless of course gold & silver rise enough that is or you can find someone who is going to pay a high premium for those signatures (not likely). Modern graded bullion with these signatures is essentially a marketing scam and money maker for the big bullion dealers. Most dealers are going to value that bullion at it's bullion value and ignore the assigned grade and 'valuable signature'. Modern bullion even in the highest grades isn't exactly limited in any way the big bullion dealers just market it as being so.
     
    Dynoking, cpm9ball and mynamespat like this.
  16. mikenoodle

    mikenoodle The Village Idiot Supporter

    no disagreement, but when you want a specific coin in a specific grade in a specific slab, you're much more likely to overpay if the slab doesn't command a premium on its own.
     
  17. baseball21

    baseball21 Well-Known Member

    That's certainly possible and it is definitely true that a good number of those slabs don't have major premiums if any. That if you're getting slabbed modern AGEs or ASEs you're likely building a set not stacking and if that set makes someone happy that has a value of its own. Really with most of them now anyway you are likely to over pay either way for a certain grade unless you wait for the initial hype to die down after they first come out.
     
  18. mynamespat

    mynamespat Well-Known Member

    The precious metal is another story tied directly to their value. I am comparing the baseball collectible market to the "first strike" or "signature" slabs that the poster I quoted was asking about.

    Besides, modern MS/PF-70 ASEs are not in short supply- they are rather common now-a-days.
     
  19. Camreno

    Camreno Active Member

    Poor OP.. you guys went into a whole debate that has nothing to do with his question.
     
  20. doug444

    doug444 STAMPS and POSTCARDS too!

    I think the second post (Chris) provides the most likely answer, that early acquirers "assume" some will be MS70s and "bet" accordingly. Unlikely anyone would admit to anything else.

    If true, it's a bet TPGs encourage. Follow the money.

    The way I feel today, based on my experience, opinions, and personal expectations, five years from now, I'd rather have 25 ungraded eagles than 22 graded eagles, etc., gold or silver.
     
    mikenoodle likes this.
  21. Tommy83

    Tommy83 New Member

    ^ I agree on having more ungraded eagles than the graded ones. I only bought the 70 graded eagles b/c they were $75 over spot. One of the brokers had a really good deal on eBay for a pre-sale for a day or two. I don't like the graded coins but the value was compelling b/c of the sale.

    I agree with you that the second poster was most likely correct.
     
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