Thoughts on graded NON numismatic fractional gold coins

[jerry278]

Hey all,

I was just wondering everyones thoughts on graded 'non numismatic' gold fractional coins. Like coins that do not have a low mintage by any means. One coin that comes to mind right now is the '2011 1/10th gold eagle'. It can be bought graded MS70 for a little over $50 more than what you would pay for a 'raw' one. What are peoples thoughts on that? I defintely can see the reasoning behind getting a graded *numismatic coin, but for a coin that is not just common, but minted in adbundance, is this a good idea?
Dont get me wrong, its nice to known that you have a MS70, and the encapsuled case is nice and protective as well.
In this scenario $50 more than a raw isnt too bad and might actually be worth it, but generally speaking, what are peoples thoughts on 'graded' 'non numismatic' 'non-rare' coins?

Thanks!

[inflationhawk]

Third party grading is accepted by the marketplace for now, but there are people, including me, that consider them a scam. I can see a place for having older coins validated and graded, but having anything graded from the last 50 years or so is utterly ridiculous and seems like a waste of money to me.

[jerry278]

Third party grading is accepted by the marketplace for now, but there are people, including me, that consider them a scam. I can see a place for having older coins validated and graded, but having anything graded from the last 50 years or so is utterly ridiculous and seems like a waste of money to me.

Interesting, thats what I am leaning towards as well. One thing I thought of is that, If there is ever a doubt, in the authentcity of a coin, if its graded you know its real. However I guess these days, you can counterfeit 'graded coins' as well

[jerry278]

What about this. If you were to buy a coin over 50 years old, how neccessary do you guys think it would be to have it graded. For down the road and re-sale, all things considered.

[oober]

Always pay for the coin, not the slab. I don't mind picking up some slabs if they are cheap enough, Morgans, semi key dates, or for other heavily counterfitted coins, but don't buy them as a practice, it's a losing proposition. Especially bullion.

[inflationhawk]

What about this. If you were to buy a coin over 50 years old, how neccessary do you guys think it would be to have it graded. For down the road and re-sale, all things considered.

If the coin is in about uncirculated condition or better, you could consider it. There is a cost involved and you have to go through a coin dealer to get it done unless you buy an annual membership to one of the grading outfits like PCGS or NGC which also costs. So you have to factor in the cost of grading in relation to the value of the coin.

[barrytrot]

If you are trying to collect them then buy it. If you want to make a profit though, that will prove IMPOSSIBLE for years to come as the "premium" for the "70" doesn't go up with the spot price and the "buy/sell spread" is quite large on "70" coins.

I have a lot of "70" coins, some I've had for almost 10 years, but I don't think I could sell one of them for more than I paid for it.

I'm happy to have most of them though as I'm a collector. But I definitely didn't do it for a profit

[Heartkill]

To me, the modern coins like Eagles are bullion and I see no need to spend the extra cash on slabbed versions. The premium is already high enough on the small fractionals.

[Market Harmony]

The modern stuff is all supposed to be MS70 or 69... back in the day, the coins came off the press and then into the banks. Very few collectors actually existed and saved prime examples. The scale of such that we see today in regards to the collecting of coin (even the gold and silver eagles) will make it so that the total population of available coins in high grade will skyrocket in comparison to the rarity of high grade old coin.

This skewing of the population towards perfect coins will kill the premiums we currently see for 69's and lower... like pretty much everything else, it comes down to supply and demand...

In regards to getting older coins professionally graded... only do it if it will help to improve the resale negotiations, or if you want to fully protect the coin from further wear or damage. Typically, if the coin isn't worth $300 or more, then you might want to think over your decision a little more so that you do not end up with a coin where all the value is in the plastic...

[Mossy]

To me, the modern coins like Eagles are bullion and I see no need to spend the extra cash on slabbed versions. The premium is already high enough on the small fractionals.

My position, precisely. If a coin is graded or the condition is mentioned, I'm inclined to look elsewhere.

[jerry278]

Hey all thanks for the input! Much appreciated!

Specifically I was wondering on peoples thoughts for a coin like this
http://www.apmex.com/Product/1124/5_Lib ... etter.aspx

A graded 'MS 62' can be had for about $75 more.
I dont have the money anyways so its a moot point haha, but was just curious none the less.

Thanks again guys.