PCGS policy on coin spots

rooksmith

https://www.pcgs.com/silver-coins-spot-policy

Some time earlier this year, the US mint decided to switch planchet alloy formulae to .999 silver. While that looks like a win for collectors, there is a downside: Milk spots on coins fresh out of the Mint. The question I have is this: "If the coins coming out of the Mint are already infected, what guarantee is there that they dont get chicken pox after they are in slabs?" ??

Also: What causes those while spots anyway? some sort of rinse at the mint???

rooksmith

Relevant links:

https://coinweek.com/education/coin-grading/ngc/coin-analyst-collectors-crying-milk-spotted-american-silver-eagles/

https://www.pcgs.com/silver-coins-spot-policy

rooksmith

_Perhaps 50 or 100 years from now, American Silver Eagles from the 1980s and ‘90s that somehow remained flawlessly untouched by milk spots may be as scarce and desirable as Full Head Standing Liberty quarters or Full Bell Line Franklin halves.

Imagine that!_

MetroD

@rooksmith said:
[...] The question I have is this: "If the coins coming out of the Mint are already infected, what guarantee is there that they dont get chicken pox after they are in slabs?"
[...]

There is no guarantee. This is why the 'PCGS Spot Policy' in your link states: "If coins spot after they are graded by PCGS, they are not covered by the terms of the PCGS grading guarantee."

FWIW - the RCM introduced MINTSHIELD in 2018 to combat the problem.

rooksmith

Will PCGS grade the post encapsulated coins as the same or will they get downgrades later?

MetroD

@rooksmith said:
Will PCGS grade the post encapsulated coins as the same or will they get downgrades later?

"When initially grading modern silver issues, PCGS will deduct for spots that are already evident. If coins spot after they are graded by PCGS, they are not covered by the terms of the PCGS grading guarantee. We anticipate that a two-tier market (spot-free and spotted) will develop, much as it has in the past 10 years or so in the U.S. generic gold market."
Link

gumby1234

@MetroD The RCM also covers their butt by stating that its the “first and only proven solution for reducing milk spots on silver bullion coins.”

airplanenut

@rooksmith said:
_Perhaps 50 or 100 years from now, American Silver Eagles from the 1980s and ‘90s that somehow remained flawlessly untouched by milk spots may be as scarce and desirable as Full Head Standing Liberty quarters or Full Bell Line Franklin halves.

Imagine that!_

The difference being whether you have one is much more likely to be dumb luck. FH and FBL will change on a coin only if the definition changes.

jmlanzaf

There are dozens of threads on milk spots. If you do a search of this site or the internet, you will find a lot of information.

ricko

I will repeat here, some advice I received from Russ many years ago. "Dip your silver coins from the mint in acetone as soon as you receive them." He told me it would prevent the milk spots. I have done that. No milk spots. Cheers, RickO

Cougar1978

Everybody knows spotted coins don’t sell as well (or perhaps not at all) vs non spotted coins. Years ago when setting up at a show I might get say 10 slabbed $20 Saints on invoice from major area dealer knew well (around CDN bid plus $10 - $20 each) buy a couple for my own retail inventory (cherry-pick, put away in bank bag) price others at say 5-10 pct over my invoice cost. I could not even sell any spotted ones at $5 over invoice and they would go back to the dealer w cash I paid for others. I think those eventually ended up at Teletrade (or sight unseen trading, blue sheet) if they did not sell for him over a period of time.

Over time coins will react with the atmosphere, heat, biological attack, salt air, and humidity. Move them quickly if you can.