On the surface there is nothing wrong with having one’s contemporary bullion coins graded and housed permanently in hard plastic containers. It is when these items are then promoted as exceptionally rare and desirable and priced at very high, and often unsustainable, premiums over their gold content that it becomes a problem. In reality, as you will read below, the graded item, in most cases, is not substantially different (except for the container) from the typical bullion coin purchased daily by thousands of investors around the world.
Our feeling was that after Buffalo hype wore off, this promotion, like many others that came before it, would fade away with waning interest. Yet here we stand seven years later, rather than fading away, it has expanded and proliferated to include American Gold Eagles, American Silver Eagles and US Mint Commemoratives. One need only search MS70 or PF70 “Perfect” American Eagles to see just how many companies offer these fictional “numismatics.” (MS is an abbreviation for mint state, and PF for proof)
Please see: What you can do if you paid very high premium prices for independently graded proof silver American Eagles within your IRA
At USAGOLD, we could not be more emphatic in our warning against paying significant premiums above the metal content for these products. This includes common contemporary items sold as “first-strike”, “early issue”, “first release”, Mint State 69, Mint State 70, Proof 69 and Proof 70, as graded by the independent grading services including the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC). Below we have published the mint’s official statement regarding “First Strike”/”First Release” designations and production quality controls. Please note the bold portion of the statement.
With the mint continually producing new coins at the same high quality that they always have, year after year, there is literally an ENDLESS supply of product. To be clear, you do not have to avoid buying these coins altogether. You just have to avoid paying an egregious dealer premium to do so. In fact, if you were so inclined as to desire ownership of graded bullion coins for future numismatic potential, we’d recommend simply purchasing bullion coins from us at our competitive premiums, and submit them to be graded (certified) on your own.
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