I just bought a bunch of graded (all ms70) bullion including 200$ for 1 oz 2012 lunar. What is everyone's opinion on graded bullion? I plan on purchasing rolls near spot in the future but I felt (hoping, really) that the premiums on ms70's will eventually rise on the AS and AGE's. All opinions welcomed! Oh and Sorry if i'm beating a dead horse with this topic but your answers will help me a lot in the direction my collection will take. Please no "whatever you like" posts! I'm asking what you all like! :thumb: -Drew
I steer clear of graded coins, proofs, rare coins, etc. unless I can get them for close to spot. It's not that I think they're a bad buy in the short to medium term, as the premiums could go either way. I do think they are a bad buy for the long term however, as on a long enough timeline I think everything will eventually go for melt as the metals become rare and are needed for consumption. If you aren't a youngster that may not even be worth considering, but you never know. Aside from all that, I just prefer to have more metal. I would only go for graded coins to flip them in the near future, not to hold indefinitely as an investment. Since I'm doing the accumulation method, and don't plan on selling much if any at all, graded coins don't fit my agenda, but I have a good friend who does graded pandas and dragons all day long and turns a quick profit now and again.
I am quite young but I wasn't planning on holding any graded bullion for more than 5 years, that is unless I fall in love with a certain coin. It's just so easy to sell on online nowadays. I think I'll keep buying graded gold and older coins but I'll probably stop buying slabbed silver rounds. I bought five 06 ms70 ase's for 50 a piece so I didn't do too bad though. Look what there charging for this Lunar though, http://www.apmex.com/Product/62492/...r_Year_of_the_Dragon_Series_1_MS_70_PCGS.aspx
I think grading of modern high volume bullion coins is a waste of money. At best, you can shop around and pick up the MS69s for less than ungraded coins, sometimes even right at spot. In that case, good for bullion holding.
My personal view is that the premium for MS70 coins isn't worth it. I never bought one and I never will. But I can't help having this nagging feeling in the back of my mind that since this is a widespread belief, it will turn out to be wrong at some point in the future and that bullion coins carrying the 70 grade will be highly prized. After all, it is typically the item that is unappreciated when issued that frequently becomes the sought after collectible a couple of decades later.
I don't think the 70's will stand the test of time for rarity, and will eventually fall in value seeing that so many 70's are being produced and graded as such. Bullion coins will always be closely associated with the precious metals markets, and therefore, rise and fall accordingly unlike many "true" coin rarities. It's one thing if you can find raw bullion coins to submit for 70's, but if you can't tell the difference between a 69 and a 70, then you would be better off buying 69's already graded. With the money you'd save, you could buy many, many more. Chris
buying graded bullion is also generally a loser. I still don't understand what is worth a premium on them... even in a 70
I don't get anything graded unless it is near spot. My B&M shop had a graded 2012 kookaburra slabbed by ANACS MS70. Sold to me for spot + &2.00. If I find something like that a grab it, but mostly just get ungraded.
I mostly bought graded bullion that was minted 2007 and older, before they started seriously pumping them out from the mint. They made 34,000 1/10 AGE's in 07, then jumped to 70,000 in 08. Maybe that will mean something in the future. I also saw that people were actually bidding high on top graded bullion on ebay. You guys did convince me to buy a roll of ASE's at spot though.
