Looking at different auction sites, it seems like most all modern gold pieces are graded MS 70 or PR 70. So that got me to thinking, hmmm, most modern gold must be 70 instead of a 69 for some reason. However, after a quick look at PCGS population report, I realized just how few 70’s were around and how many 69’s were put out.
Ten years ago just about all you could find on the market was the 69's. That's because there were so few of the 70's. And the reason there were so few of the 70's was because there so few people who actually cared what the pieces graded at all. To them a 70 is no different than a 65 - bullion was bullion. But today, there are more people out there who do not share that philosophy. And so more and more of the modern silver and gold coins are submitted for grading. And that is largely because of the outrageous prices that the 70's would bring on the market. People will look at what a 69 brings, a small percentage over spot, and what a 70 brings, multiples of the spot, and thet get all excited and see dollar signs in their eyes. But they fail to look beyond that. They fail to look back in time and see what those 70's used to bring just a few short years ago. A 70 coin 10 years ago would sell for 5 or 6 thousand dollars. 5 years ago that number had dropped 2 or 3 thousand. Today the very same coin may only bring $1000 or $1500. Do you see the pattern here ? The point is that the 70's are not any more rare today than they were 10 years ago, there are just more people noticing them and submitting them. Everybody wants to cash in. But they are failing to see what they are actually doing. They are bringing truth to the forefront. They are showing that a large number of 70's are actually produced when it comes to these coins and that there is no scarcity of them. Thus the prices for them have been dropping for 10 years now and they will continue to drop. That is until those few people who seem to think that a coin with a 70 grade actually matters come to realize that it doesn't. Then prices will stabalize at some small percentage above spot the all the ruckus will fade away. Those who spent large sums on the 70s will realize how much money they lost and will go cry in their beer. Those who didn't will shake their heads in wonder at how people could be fooled by such a thing. And life will go on until the next thing comes along that fools people into thinking they have the new get rich quick scheme. And it will start all over again, just like it always has.
I think the big winners were the grading companies. They got paid no matter what. like GD said, they are all bullion coins anyway. Since they are not minted for circulation they are all going to grade high anyway for the most part so collectors can buy high grade examples. Also since the 69's are not much over melt that is why you see all the 70's for sale and not he 69's which is what you noticed.
Let's go one step beyond what Doug has said. Since the 70's bring so much more money, everyone goes over the modern stuff and ships anything they think might have a chance of getting a 70 to the services. Now the number of 70's is still relatively low, but the number of 69's is SKYHIGH. So much so that the 69's values have dropped to just a small amount over the average bullion piece. Now it costs money to sell a coin at auction and since the 69's don't sell for much over bullion they are not worthwhile for the auction houses to list. So the only things you find are the 70's.
Furthermore, many people prefer the complete Original Government Packaging to the slab. Often, it's harder to sell a 69 than OGP. Plus, The Dreamers can buy the OGP hoping they can pull a 70... for those who treat the TPGs like a lottery.
