I like the undergrade coins for long-term holding...
solid
Posts: 2,975
Here's an example of why:
Coin A - 1963 25c PCGS PR68DCAM - purchased by me for $75.50, delivered. The
coin is in hand, and looks great with frosty devices and very clean, nearly flawless
surfaces. PQ for the grade, in my opinion.
Coin B - Same coin in PR69DCAM in an upcoming sale. I'm guessing this one will sell
for a discount, at around $200, because of the spots, and the buyer will be pleased
that they got a bargain based based on the normal $250+ price on 69DCAM coins.
This is a minor example of pricing differences from the highest-graded to the 1-point
undergrade coins - for some coins, there are thousands of dollars difference. For
long term holding, you could purchase 2 or 3 examples of coin A, versus 1 of coin B.
Here are some of the advantages to 1-point undergrade coins:
1) With patience, you can find premium examples for a (sometimes tiny) fraction of
the highest-graded price.
2) It's almost a sure bet that the top few percent of the undergrade coins are
nicer than some of the highest-graded coins for the same issue.
3) With all the crackouts, the existing population of undergrade coins may be much
smaller than actually reported. Populations of top-pop coins should be much closer
to reality, with the exception that some of these may be reported multiple times
from tries at making a pop 1 coin.
This is not at all to say that highest-graded coins are a bad investment; the truly nice
ones should do well in the long run. On the other hand, this level is where you will
probably find the most grossly overpriced coins on an individual basis. It is certainly
a minefield.
Bottom line is, I feel there are more true bargains available in 1-point undergrade
coins, versus their highest-graded counterparts, and it's my mission to find them!
Ken
Coin A - 1963 25c PCGS PR68DCAM - purchased by me for $75.50, delivered. The
coin is in hand, and looks great with frosty devices and very clean, nearly flawless
surfaces. PQ for the grade, in my opinion.
Coin B - Same coin in PR69DCAM in an upcoming sale. I'm guessing this one will sell
for a discount, at around $200, because of the spots, and the buyer will be pleased
that they got a bargain based based on the normal $250+ price on 69DCAM coins.
This is a minor example of pricing differences from the highest-graded to the 1-point
undergrade coins - for some coins, there are thousands of dollars difference. For
long term holding, you could purchase 2 or 3 examples of coin A, versus 1 of coin B.
Here are some of the advantages to 1-point undergrade coins:
1) With patience, you can find premium examples for a (sometimes tiny) fraction of
the highest-graded price.
2) It's almost a sure bet that the top few percent of the undergrade coins are
nicer than some of the highest-graded coins for the same issue.
3) With all the crackouts, the existing population of undergrade coins may be much
smaller than actually reported. Populations of top-pop coins should be much closer
to reality, with the exception that some of these may be reported multiple times
from tries at making a pop 1 coin.
This is not at all to say that highest-graded coins are a bad investment; the truly nice
ones should do well in the long run. On the other hand, this level is where you will
probably find the most grossly overpriced coins on an individual basis. It is certainly
a minefield.
Bottom line is, I feel there are more true bargains available in 1-point undergrade
coins, versus their highest-graded counterparts, and it's my mission to find them!
Ken
0
Comments
But, of course, that PCGS-PR69DCAM quarter might simply need a professional conservation to come up blazing and nice.
Wondercoin
<< <i>
Bottom line is, I feel there are more true bargains available in 1-point undergrade
coins, versus their highest-graded counterparts, and it's my mission to find them!
Ken >>
There's also a great deal less competition for these coins. With more recent coins
this causes them to often have ridiculously low prices because of small aggregate
demand for the type or date. Many coins are quite scarce in the undergrade even
if common in low grade. This translates into some real bargains.