High Silver Prices & TPG Business
coastaljerseyguy
Posts: 2,047 ✭✭✭✭✭
Apologize if this has been discussed prior. But with the recent jump in silver prices, does it curtail TPG grading fees because of the loss of numismatic premiums. Doesn't appear to be economical to slab a common date coin that is not gem quality. Why would someone slab an 81-S Morgan that is a MS 64 and under grade when the bullion market is close to the recent price guides. MS64 Morgans were around $75 (Greysheet) in the fall and with costs involved to slab, the net appears to be slightly higher then bullion. Understand nicely toned & unique coins will command a premium, but the generic stuff seems like a financial loser to slab, never mind the time involved, risk and possible lower grade received.
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Probably will. U-Tube is full of video of graded holders being cracked out en-mass, using hammers and rollers, destroying any collector grade the coin might have had. But the 81-s has a ways to go, bullion buyers not paying much over $50 for common Morgan’s. As long as a higher grade numismatic value exceeds that, it should be safe (for now at least).
I do not know how much the TV hucksters pay for encapsulation, since they get bulk discounts. But the number of encapsulated coins continues to escalate due to their shipping thousands of current releases, then dumping all but the 70s. So the TPG’s do more encapsulations for less monetary return. Is there enough business with the hucksters to keep TPG’s as profitable as the investors believe they should be?
Depends on who is submitting. A bulk submitter paying $10 or less or coin might make it work. Most dealers or collectors would be throwing money away.
This was, by the way, true for years even when there was a numismatic premium. If you were paying $25 or more per coin, there was never an advantage to slabbing things like 63 Morgans and ASEs because they sold raw at prices with $25 of slabs.
That said, a lot of collector submissions are not done because it is economically advantageous.
All comments reflect the opinion of the author, even when irrefutably accurate.
Why would anyone spend money slabbing an ultra-common coin like an 1881-S Morgan Dollar unless it was a razor sharp, near perfect coin with silver prices as high as they are now? Look at the pop reports for such a coin. High grade examples are a dime-a-dozen and the date comes extremely well struck with great luster!
Bullion value has made TPG grading of ultra-common silver coins a probable waste of money.
Investors demand slabbed Morgan’s. PCGS and CACG pieces in high demand. An 1881-S MS65 CACG Morgan has CPG MV of $550.
WTF are you smoking? Out of all of your absurd and scummy statements over the years, this is one of them.
chopmarkedtradedollars.com
That’s a big no ghost rider.