AU... it's a love-hate relationship.

coinpictures

When we make an AU at NGC or PCGS expletives abound, because we thought fore sure it was MS. "Is that grader blind???? There's no wear on that piece! What are they thinking????"

Conversely, when we see that MS61 in an AU58 holder because the grader didn't get any the night before, we chortle over the bargain.

When buying coins that are already slabbed, in my mind AU53-58 is a range that is ripe for the picking, and deals abound... for several reasons:

1. Almost the appearance of an MS piece for usually considerably less in cost... in some cases a small fraction of what MS pieces cost. AU pieces usually have a considerable amount of lustre remaining, so they have a bit of "flash" to them.
   
   
2. A lot of people are scared away by AU pieces because they don't know how to value them, so competition (using Ebay as an example) often is diminished, meaning that AU53-58 pieces will often finish at barely above XF money.
   
   
3. For areas where there are huge jumps between XF and MS60 in the catalog (Canada, Scandinavian countries, etc.), AU pieces are a good way to fill that hole in a series without going broke. For example, if a coin lists for $15 in VF, $30 in XF, and leaps to $250 in MS60 (not uncommon), picking up an AU55 for $50-100 becomes a very attractive option for filling that spot with a nice looking piece.
   
   
4. Buying a slabbed AU53-58 coin means someone else most likely has taken the hit. If a coin is in a 53-58 holder, odds are that *someone* thought it was nice enough to possibly make MS60 (or else they wouldn't have sent in the coin to begin with). That person may be disappointed enough to just want to get rid of the damned thing and move on... that's when you pounce. Although I've also seen cases when the seller simply refuses to acknowledge the AU grade on the holder and still wants MS money for it... those you ignore. Eventually after they've sat on the coin for 6+ months and paid relisting fees enough times, they'll come to their senses.
   
   
5. Many AU53-58 pieces *are* in fact MS60-62 pieces that didn't holder that way because of (1) the grader, (2) when it was graded, or (3) it was net graded down a point or two for some aesthetic reason (which may or may not be shared by other people who view the coin). I would far prefer to pay XF/AU money for a potential MS60-62 coin than pay MS money for a possibly overgraded AU58... for every undergraded AU there's an overgraded MS. That is not to say that every coin in an AU holder is an undergraded MS; far from it, but the potential is there.
   
   
6. You can frequently find nicely toned and/or lustrous coins in AU holders that are aesthetically far more attractive than coins in MS60-62 holders. For some reason many coins I see in MS60-62 holders are outright dogs. Not sure why that is. They may technically be MS, but are so beat up that I wouldn't want to touch 'em. And sellers invariably want full MS money because the holder says it is, disregarding subpar aesthetic appeal. That nicely toned AU58 is a much better bargain... the rub on the obverse knocked 60% off the price (or more).
   

AUs... we hate 'em when we make 'em, but we love 'em when we find 'em...

theboz11

Sliders can make you a lot of money, especially US Gold.

AuldFartte

I think AU-58's are the best coins to buy when you can get 'em because they are almost always coins that, without the tiny bit of rub on the high points, would have "made" 64 or better. The 58's when properly graded have nearly pristine fields and surfaces and almost always look SO much better than 60-63's.

Very nice analysis, Coinpictures

bosox

I hate 'em. See how much I hate 'em.

AuldFartte

<< <i>I hate 'em. See how much I hate 'em. >>



Damn, Bosox, that's one helluva set !!!

laurentyvan

I hate 'em. See how much I hate 'em.

On the one hand, awesome coins.

On the other, if you were wishing for MS grades then... I can understand why you hate 'em.

secondrepublic

Coinpictures, you make some great points. A lot of AU 55s and 58s are a lot nicer than MS60 to 62s. People think that higher grade always means a nicer coin -- but it really doesn't. NGC in particular will grade a hairlined MS coin (so long as it's not too bad) in low MS condition, but you can get a nicer coin in AU 55 or 58 without those problems. Give me a tiny bit of wear on the high points any day, instead of a coin that's been wiped or is covered in bagmarks.

7Jaguars

Interesting points, and well put. I think that I actually like some gold better in AU if it is just right (and even some EF pieces too) and NOT that way because of hairlines. Sometimes the luster breaks can come off attractively and nice not to have the digs in devices or field.

lordmarcovan

<< <i>AUs... we hate 'em when we make 'em, but we love 'em when we find 'em... >>

That pretty succinctly sums it up.

I don't play the submissions game too often, so when I need slabbed coins I usually buy them already in plastic. Everything you've said about AU coins is true, but in my case it's more love than hate. I have often wondered why Krause doesn't give AU valuations except in some rare instances like perhaps US and Canadian coins. Then again, it's probably just as well. XF is pretty clearcut, as is MS (though MS numerical grades are anything but).

Silvereagle82

Great post !!! Your right on with your points.

I have no problems adding nice AU coins to my collection !!

worldcoinguy

Good post! It is more love than hate for me. I think a little rub on them is a good reminder of the coin's history.

Good point on #4 - I had not thought of it in that way before, but I think you are right.

Cladiator

AU is my prefered grade in my core collection, which you can see in the sigline link to my website. AU gives you the best of both worlds IMO.

worldcoinguy

You moved me to want to share a couple of my favorite AU coins (sorry if I have shared these in the past). The first is an AU-53 Saxony taler from 1630 and the 2nd is an AU-50 Salzburg 1/2 taler.....each with their own bit of history.