Are Bullion Coins Worth Grading?

jfloomis3

My question:

Are bullion coins worth grading?

I ask this because my mother does not know whether she should get her bullion coins slabbed, and I am unsure as well.

My mother had a lot of gold melted down when my grandfather passed in 2007 (he bought scrap gold during the 1980's when everyone was selling), and now she has about 50 (fifty) 2007 $50 Gold Eagle (Regular Strike) 1 oz. gold coins, all raw.

I suggested to her that having them certified and graded would bring a premium to the coins that would appreciate over time so that when she decides to sell them, they will command a higher price than if they were raw. She is unsure about spending the money to have them graded, and I cannot give her an honest opinion on whether it would be a good investment to have her coins slabbed.

So- Would slabbing the coins be a good investment that would pay for itself, or a waste of money?

Thank you,

Jimmy

epcjimi1

I'd find an expert and have that person cherry pick the inventory for grading. Pay 'em a fee based on results.

Bochiman

You will get answers on both side of the equation here, so let me post from the middle....

Are the bullion pieces damaged/mishandled at all? If so, don't worry about slabbing.
Now, go to different websites (ebay/Teletrade/etc) and see what a slabbed one, in "normal" grading (likely a MS69), goes for compared to the bullion price. If it is almost the same, then don't do it. Too much $$$ will then be wrapped up in plastic where it won't be recovered when you need/want to sell.
Take a look at the pop reports...are there very few MS70? A lot? What are the prices paid for those? That may influence the decision.


That all said, if it were me, I would just look at what a MS69 slabbed vs raw would bring and use that for my decision (and, for me, it better be >$100 per piece to make me even contemplate doing it...unless I was trying for a MS70)

jmski52

My recommendation would be something along these lines:

Are the bullion pieces damaged/mishandled at all? If so, don't worry about slabbing.
Now, go to different websites (ebay/Teletrade/etc) and see what a slabbed one, in "normal" grading (likely a MS69), goes for compared to the bullion price. If it is almost the same, then don't do it. Too much $$$ will then be wrapped up in plastic where it won't be recovered when you need/want to sell.
Take a look at the pop reports...are there very few MS70? A lot? What are the prices paid for those? That may influence the decision.

jfloomis3

<< <i>You will get answers on both side of the equation here, so let me post from the middle....

Are the bullion pieces damaged/mishandled at all? If so, don't worry about slabbing.
Now, go to different websites (ebay/Teletrade/etc) and see what a slabbed one, in "normal" grading (likely a MS69), goes for compared to the bullion price. If it is almost the same, then don't do it. Too much $$$ will then be wrapped up in plastic where it won't be recovered when you need/want to sell.
Take a look at the pop reports...are there very few MS70? A lot? What are the prices paid for those? That may influence the decision.


That all said, if it were me, I would just look at what a MS69 slabbed vs raw would bring and use that for my decision (and, for me, it better be >$100 per piece to make me even contemplate doing it...unless I was trying for a MS70) >>



The coins are in the same shape as the day they were struck. No damage what so ever. She gave me one coin, and I submitted it about a year ago, and it got an MS-69 Secure Plus.

I tried comparing a MS-69 with a raw coin, but could not find any raw coins. It seems that all are graded, so I have nothing to compare to.

Pokermandude

Did the coins come directly from the mint, in multiple layers of packaging and never touched by human hands? Do any look *absolutely* perfect? If the answer is yes, then there's a shot at getting a mythical MS70 grade. Even then, I doubt it's worth the hassle because on gold MS70's just don't bring that big of a premium. Chances are you'll just end up adding costs to your already owned gold.

mingot

You already have one in MS69?

Throw it, and one of the raw coins, on ebay. Might help you get a fell on whether it is worth it to slab the remainder.

Timbuk3

I would leave them alone and
not get them graded. Buyers
would rather have them in their
original box with COA.

LotsoLuck

Beats me but how did you get a LordM Seal of Approval

derryb

They would have to be completely flawless (MS70) to bring a return greater than the cost to grade them (joining PCGS, postage, grading fees, etc.). Anything less than perfect would not cover the cost.

jmski52

These didn't come in an original box. They are bullion coins. Based on what I see in the Population Report, the 2007 1 ozers will never be key issues in MS-70, but they are also not "common". They are not scarce enough to grade them all, so I would get a good loupe, some white cotton gloves, a grading guide description for MS-69 vs. MS-70 on this coin design, and I would settle in for an afternoon of un-hurried coin evaluation.

As you look them over, your eye will improve and with 50 coins, you will have a good basis for comparison. I would then rate them in order of quality and then I would submit the 3 or 4 best ones for grading. That will give you enough information to determine whether or not to proceed with more submissions. If you score 2 out of 4 on the first 4 submission, you might consider submitting a few more.

The price differential between MS-69 and MS-70 on this date is only a couple hundred bucks. Other people undoubtedly own some of these coins raw, and if there is ever a wide gap between the MS-69 vs. MS-70 grades, I would bet that the population of MS-70 specimens will grow, thereby diminishing future premium potential.

If you have time enough to take it slow, you will gain some valuable experience, along with enhancing the value a bit. Not alot, but some. Good luck.

DCW

Quite frankly, Ive never understood the idea of taking a mint product that was never intended for circulation and getting an expert's opinion of factory grade. Yes, there are nuances to the trained eye, Im sure. But is it worth $50 in grading fees and postage??? For some, Yes. And for the majority of gold buyers, who are in it for the precious metal content which is stamped onto the coin, the answer is no.
Not wishing to offend the modern slabbers and gentlemen, but really why do this??

derryb

<< <i>Quite frankly, Ive never understood the idea of taking a mint product that was never intended for circulation and getting an expert's opinion of factory grade. Yes, there are nuances to the trained eye, Im sure. But is it worth $50 in grading fees and postage??? For some, Yes. And for the majority of gold buyers, who are in it for the precious metal content which is stamped onto the coin, the answer is no.
Not wishing to offend the modern slabbers and gentlemen, but really why do this?? >>


Because there are a lot of collectors willing to pay much more for a graded 70.

golfer72

<< <i>

<< <i>Quite frankly, Ive never understood the idea of taking a mint product that was never intended for circulation and getting an expert's opinion of factory grade. Yes, there are nuances to the trained eye, Im sure. But is it worth $50 in grading fees and postage??? For some, Yes. And for the majority of gold buyers, who are in it for the precious metal content which is stamped onto the coin, the answer is no.
Not wishing to offend the modern slabbers and gentlemen, but really why do this?? >>


Because there are a lot of collectors willing to pay much more for a graded 70. >>

Yeah but you are still relying on there being a greater fool than you when you go to sell.

RedneckHB

No

wondercoin

I would happily sell "common date" $50 gold eagles in PCGS-MS70 (dates my choice) for $125 above the price of a raw $50 gold eagle coin (which is about $70 over spot). It costs at least $30 or more including shipping to grade the MS70 coins. So, for the coins that grade out MS70, there might be $75-$85/coin profit to be made in slabbing the coins. Now, for every MS69 that grades out, figure that is a total loss of the grading fees (say hypothetically $15-$20/coin including shipping to grade those). So, you make perhaps $75 for each MS70 and lose $15 for each MS69. Therefore, if 2 out of 5 coins grade MS70, you might make $105 clear. Times (10), for (50) total coins would be a possible return of about $1,000 with a 40% MS70 grade through rate on the coins. If only 1 out of 5 grade MS70 (20%), the profit might be $15 per (5) coins or $150 for all (50). This does not take into account that one could probably sell tubes of gold eagles in 5 minutes while it might take upwards of a hour or more to sell each MS70 coin.

And, this also assumes one can net $125 NET premium for the MS70's ... a price I would happily sell coins for today as stated and was an assumption of the figures here. If there was only $75-$100 net premium for the MS70 coins in the end, the possible profit drops even more. Also, different results entirely for less than 20% grade through rate and above 40%.

Hope this helps.

Wondercoin

GritsMan

I'd also say no, but...does she have any 1991 half-ouncers around?

IrishMikey

No. 50 one ounce gold eagles will easily fit into a few plastic tubes, while 50 slabbed pieces will take up
much more space.