Certified Bullion Coins

There seems to be a trend towards grade or certified Bullion coins in today’s market.

There certainly are some good reasons to buy coins graded by NGC or PCGS.

• When coins are certified they are also checked for authenticity. There have been numerous reports of fly by night companies delivering counterfeit coins . Although it is very rare ,there are always concerns. How would a novice know real gold from gold plated base metal. And with gold prices in the stratosphere its more and more risky to buy from dealers that are not well established.
• The coins are protected in a hard plastic case. This will make it easy to store the coins without worrying about scratching, bending or damaging the coin. Damaged coins will be discounted when you sell them. Damaged Maple Leaf coins will bring about $30 – $50 less per coin than non damaged coins.
  
• Certified coins are much easier to handle. Since they are packaged they can be shown to friend, displayed and handled . If you drop the coin it most likely won’t get damaged or end up with a flattened rim.

Unfortunately most dealers are selling investors the story that the coins graded MS-69 or 70 are worth multiples of the price of gold. This is where you need to be careful . Remember you are buying GOLD not a collectible coin. You may need to pay $125 to $200 over spot for the graded coin.

However many dealers are charging  much more than that . They claim that because the coin is in such top quality, it commands a huge premium.

Recently I have seen dealers charge almost $5000 for a 1 oz Platinum Eagle. The true value was around $1875 ! I’ve seen the 1 oz Gold buffalo and Eagle coins being sold for as much as $4900 each. I sell those same coins for under $1600!

The fact is that with very few exceptions the Graded bullion coins are worth the same price as ungraded coins when you need to sell them. I think this is one of the biggest scams going in today’s market.  A large dealer I know was charging almost 50% over gold for MS-70 Gold Buffalo coins yet when my client asked him for a repurchase price he offered less than 3% over spot. That means gold had to go up 50% just to break even.

This all happens because dealers are not happy making 3-5% profit on gold coins . They instead want to make 50% – 300% by trying to convince you the coins are rare.

The truth is that practically ALL of the new coins are produced in MS-69m and MS-70. Sending random coins taken right out of Mint Rolls showed that approximately 30% came back graded MS-70 and the rest were MS-69. The Mint only makes 14500 coins per die. This guarantees that no coins is truly a First Strike or that you can tell the first from the last coin to be made. The grading is just fluff.

look at some of the numbers.

• PCGS alone has graded more than 81,000 MS-69 Gold Buffalos and close to 20,000 inMS-70! Conversely there are less than 100 in MS-68. Clearly that proves that most coins produced are nearly pefect and the higher graded 69 and 70 grades are really not anything special.
  
• Silver Eagle populations are even worse with over one MILLION coins graded MS-69 and 70. With 764,898 in MS-69 and 59754 in MS-70 these coins are extremely common.
  
• Gold Eagles confirm the same thing with over 130,000 in the two top grades.

Don’t believe the supposedly crazy auction prices dealer tout.  Many of these coins  are available for as little as 10% of the supposed auction price.

At American Federal we believe you should get true value for you money and we never charge you more for fluff.

Call today for prices on Certified coins. We will BEAT any competitors price!!