Advice to New Stackers...To Grade or Not to Grade, That is the Question.
When I was a beginning stacker, I was advised to buy graded coins. I consider it one of my greatest mistakes in stacking. There were times where what I paid for a graded coin, I could have had two ungraded coins...but you live and you learn.
There are some positives to graded coins:
- They are more likely (albeit, not guaranteed) to be genuine silver.
- NGC cases are great, better than the standard airtites. I do not own anything other than NGC.
- Coins graded NGC 70 come at a hefty premium, but they can fetch a lot in the open market if there are only a few coins graded at NGC 70. I only have NGC 69 or lower.
Negatives:
- The premium.
- A limited market of buyers when you resell.
- You sometimes pay for the label (I'll explain in a minute).
- They do not prevent milk spots.
Ok, so what do I mean when I say you "pay for the label"? Here's my example:
I paid about $40 for this coin in 2014. There is one for $31.95 (shipping included, and it is graded higher) on Fee Bay right now. I have lost about 25% in value. Currently ungraded versions are selling for the low $20s. If I would have bought only ungraded versions, I would be about even (the small rise in premium would help negate silvers decline over the last few years). I am probably down on every single graded coin I bought.
Paying for the label refers to that special little label that says "One of the first 2500 struck". That is why I bought it, for that little label. I thought that it would be more rare and sought after. Boy was I wrong! They come in all sorts of designs and some are completely irrelevant. Don't believe me? Look at this gem (photo taken from NGC's website, because there is not going to be one of these in my personal collection)
That is Rick Harrison from the TV show Pawn Stars. He signed this coin label...why did he sign this coin label?!? I'll wait while you ponder the answer...
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Ok, now my brain hurts, so I am moving on. Canadian Maple Leafs are notorious for milk spotting. I thought that buying one slabbed would be able to prevent the spots. Nope! Here's one of my 2008 Maple Leafs complete with a little "snow" in honor of the winter Olympics.
So what are your thoughts on this subject? Do you agree or disagree? Are there pros and cons I should have added?
If you enjoyed my post, check out my last post...complete with pictures of birds: https://steemit.com/steemsilvergold/@mikeshuh/the-unintended-side-effects-of-silver-stacking-a-kookaburra-story
Unreleated to my post (and kudos if you read this far)... I see logos at the end of many peoples posts. Are there templates for the #steemsilvergold or for #thealliance communities to use? I was just accepted into the Alliance and this is my first post written as a member of this awesome community (though I did retroactively add an Alliance tag to my last post)! : )
I really enjoyed reading your article. Looking back it's easy to see in heinsight what we should have done but sharing the knowledge you have learnt now to help others is great. When I first started collecting I was drawn to the designs on collections of coins also and just as you were started buying graded thinking in the log run it would help the resale value. I moved a few years ago direct into bullion and to keep my coin collection going joined some subscriptions at my mint here in Australia. Mixing it up between physical and digital is great as you get the best of both worlds. Thanks for including the photos of your individual coins I'm following you now for future updates :)
They say hindsight is 20/20. Oh, well. Eventually I think silver will go up and eventually I'll be up, even on those slabbed coins. Besides, it is great to diversify what you buy, so my early mistake doesn't both me too much. I am following you know as well.
Thanks the market will go up and when it does we can sit back and enjoy the ride. Collecting is fun no matter what the value of the item to be honest that's what makes a good hobby. Just in our case it goes up in value a fair bit more than collecting shirt buttons :)
Great post. Early on I was advised to by graded gold coins as well, usually in the MS-61 range. The seller later went on to say that graded coins were a waste of money and it was a better investment to just purchase regular circulated.
Boy, did I feel betrayed!
Live and Learn and Live to stack another day!
That must have been even worse hearing it from the person who sold you the coins. At least the ones I did buy are nicely preserved. : )
Great post...
Your dead on about the Pro's and Con's
I'm a Collector at heart and need my Slabbed Fix from time to time!lol
I learned that if I am going to get a slabbed coin...pay the premium and buy a MS70 (with a low population).
I usually only slab gold, platinum and numismatic silver
If you buy a modern coin you would expect it to be of a good grade in any case without NGC and the like verifying it. I dont buy graded coins but i do have a couple and see the appeal especially with small gold coins and collecables that normally come in bulky boxes, its easier to admire your collection. Suppose i would see graded coins as a premium payed for my own enjoyment more than as an investment item.
Sometimes it is worth it to pay more for your own enjoyment. I cannot afford to buy a lot, but when I do buy, I usually buy something that I don't already have. No stacking of Eagles, Leafs, Philharmonics, etc. I want to see different designs...even though I know this is going to burn me when I try to resell.
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Great post. I am still wondering why he signed that coin?
Me too...me too!
That's each to its own to decide. But a mass produces Bullion coin like a maple or silver eagle is not worth it in my eyes lol. A panda might have potential same with the Queens beasts though it's very hard to get a 70 on the beasts in Bullion grade.
I cannot get into the Queens beast coins. It may sound silly, but I really dislike that they are a different size as every other coin, and therefore need their own cases. Sadly I did buy couple of graded mass produced coins. I have a couple of Eagles and sadly one Fiji Taku. Ugggh, thinking about that purchase makes me sad.
@mikeshuh got you a $1.6 @minnowbooster upgoat, nice! (Image: pixabay.com)
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Go Ahead, knowledge and information .... I upvote your post but i don't have voting power in the moment..