Author Topic: As G1/2 increase in value, what is a lower grade example worth?  (Read 3031 times)

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Offline Birdman

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For a while, the only grades people paid a premium above spot price for was MS69/MS70.  Then MS67/MS68 started receiving nice premiums as a result of master sets demand.  As the prices on some G1/2 rise to very high levels, the question occurs to me, what is a lower grade example worth?  For example, I see a UNC details "Removed from Jewelry" 1997 G1/2 for sale.  A few years ago, no one would have paid much more above spot for that.  But, now, with the coin so scarce, what premium is justified for someone who wants and example in their collection?  Similarly I see some MS65 or similar grade, and I wonder what they are worth?

Personally, I have still been focusing on MS69/MS70 exclusively, but I'm just curious if the landscape of the market for the lower end grade is starting to change?

Offline Mirkkanen

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #1 on: April 22, 2016, 01:12:46 AM »
I would pick it up for $1,000, but not for the price it is listed at. I, too, was eyeing this coin but I decided to pass.

Sometimes I see 1998 1/10th and 20th that are damaged sell in the $250-$500 range.

Offline Birdman

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #2 on: April 22, 2016, 07:28:53 AM »
I would pick it up for $1,000, but not for the price it is listed at. I, too, was eyeing this coin but I decided to pass.

Sometimes I see 1998 1/10th and 20th that are damaged sell in the $250-$500 range.

Yes, I definitely wouldn't pay the asking price of $1500.  And, now that I've slept on it, I can't see myself paying more than about 15% over spot price (about $800 or so) for such an ex jewelry piece, albeit rare.  I only have so much storage space and so much money.  I would rather buy a high grade and hard to find piece in a sector that is currently undervalued and underappreciated. 

I do, however, like to continually test my assumptions.  After all, I sold a 1995LD G1/2 NGC MS68 three years ago for $2325 on the logic that the lower grade MS68 didn't have as much upside potential and I should better invest elsewhere.  Not my best decision!  I can always continue to learn about the market and its trends.

Offline jc888888888

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #3 on: April 22, 2016, 10:44:40 AM »
  Amen Birdman!! I had a 67 and 68   1995 1/2 oz gold i sold 4 years ago for less than 2300 each , it is like a recurring nightmare:)LOL     you just brought it back again:)  LOL

Offline mook

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #4 on: April 22, 2016, 11:49:25 AM »
After all, I sold a 1995LD G1/2 NGC MS68 three years ago for $2325 on the logic that the lower grade MS68 didn't have as much upside potential and I should better invest elsewhere.  Not my best decision!

Hi Birdman
I will not say like you, in a few years the market will make the difference, this market is still very young, even different versions are not yet taken into account, according to the age that you have, it's can not be that you enjoy the best of your purchasing decisions.

Offline Pandora

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #5 on: April 22, 2016, 12:32:20 PM »
In the context of Master Sets, and in case of population/grade rarity, I think MS67s have lot of value. In my collection, I have some 67s which very rarely grade a 69.

Regarding lower grades, I ran into something similar. I had 2x 1996 G1/2s, which graded as "UNC Details". I sold them at little over melt (that time about $1500). Sometimes I regret selling them...  :biggrin:

Offline KeepOnTrying!

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #6 on: April 22, 2016, 02:43:08 PM »
Another factor to take into consideration is the longevity guarantee/expectation of the MS/PF70 coin; how many years do we expect these coins to keep their grade in view of expected environment induced deterioration? 10, 20, 30 or 50+ years? What happens when an MS/PF70 gold coin, for example, develops red spots? Will anyone treat it as a 70 grade coin when they buy it from you? Will NGC guarantee a 70 grade after conservation and removal of the brown spots? What happens then to the (huge) premium you paid when you bought that coin, if the grade is not maintained or improved post-conservation?

I find myself asking these questions more frequently now as I buy new release MS/PF70s coins and medals, and chase previous/earlier releases. I am beginning to think that if one is aiming to keep a coin or medal for a very long time a 69 grade or even 68 could be a more stable grade compared to a 70. Heck I even have some lower grades in my collection that I am very happy to keep for as long as possible! Even if they require conservation and regrading in future I am sure NGC will be under less pressure to maintain those sub-70 grades compared to their situation with the MS/PF70 coins.

Anyway, these are just thoughts as we evolve on how we value these coins!
KeepOnTrying and Never Give Up!
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Offline Mirkkanen

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #7 on: April 22, 2016, 03:09:31 PM »

Offline moosician

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #8 on: April 22, 2016, 07:22:01 PM »
Another factor to take into consideration is the longevity guarantee/expectation of the MS/PF70 coin; how many years do we expect these coins to keep their grade in view of expected environment induced deterioration? 10, 20, 30 or 50+ years? What happens when an MS/PF70 gold coin, for example, develops red spots? Will anyone treat it as a 70 grade coin when they buy it from you? Will NGC guarantee a 70 grade after conservation and removal of the brown spots? What happens then to the (huge) premium you paid when you bought that coin, if the grade is not maintained or improved post-conservation?

I find myself asking these questions more frequently now as I buy new release MS/PF70s coins and medals, and chase previous/earlier releases. I am beginning to think that if one is aiming to keep a coin or medal for a very long time a 69 grade or even 68 could be a more stable grade compared to a 70. Heck I even have some lower grades in my collection that I am very happy to keep for as long as possible! Even if they require conservation and regrading in future I am sure NGC will be under less pressure to maintain those sub-70 grades compared to their situation with the MS/PF70 coins.

Anyway, these are just thoughts as we evolve on how we value these coins!

Im thinking the same as you after learning that there is no option to NCS the coin only and maintain the grade, dont really understand why but i hope maybe this rule could change.

With that said, yes, gold pandas 67 and above is good for making BU sets in China.

Offline mazinger7000

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Re: As G1/2 increase in value, what is a lower grade example worth?
« Reply #9 on: April 22, 2016, 08:23:33 PM »
what is a 1995 1/2 in ms66 or UNC details worth now? just curious, i don't have one...