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<p>[QUOTE="d_lairson, post: 267443, member: 8441"]I don't think that this is entirely correct. The point of a slab is to retain grade, not value. All a slab says is that a coin is a certain grade. Grades of coins determine value. As you said the value of a coin is always in flux. If the price of coins drops, the price of slabbed coins will drop. The slabbed coin might have a higher value than the raw coin, right now, but the value will still fall. The value of a slabbed coin is higher right now because consumers and investors have confidence in slabbed coins. This could easily change. With the number of self-slabbers growing introducing questionable grades into the market confidence could easily errode. When this happens the premium that people pay for coins in slabs will drop. If this happens in conjunction with a drop in the overall coin market there will be a crash. </p><p><br /></p><p>As you say being able to cash out at a known value helps the market. But remember those values change, if those values drop, suddenly, there will be a crash. You still will be able to cash out at a known value, the grades on the slabs will remain the same, it's just that you will not be able to get the origional value for the coin.[/QUOTE]</p><p><br /></p>
[QUOTE="d_lairson, post: 267443, member: 8441"]I don't think that this is entirely correct. The point of a slab is to retain grade, not value. All a slab says is that a coin is a certain grade. Grades of coins determine value. As you said the value of a coin is always in flux. If the price of coins drops, the price of slabbed coins will drop. The slabbed coin might have a higher value than the raw coin, right now, but the value will still fall. The value of a slabbed coin is higher right now because consumers and investors have confidence in slabbed coins. This could easily change. With the number of self-slabbers growing introducing questionable grades into the market confidence could easily errode. When this happens the premium that people pay for coins in slabs will drop. If this happens in conjunction with a drop in the overall coin market there will be a crash. As you say being able to cash out at a known value helps the market. But remember those values change, if those values drop, suddenly, there will be a crash. You still will be able to cash out at a known value, the grades on the slabs will remain the same, it's just that you will not be able to get the origional value for the coin.[/QUOTE]
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