Cheaper slabs in a cold coin market?

[RobertB]

What do you think? Will grading companies lower their prices if the coin market slumps? Is there any historical evidence to support this? I haven't been in the game long enough to know.

[DaveG]

I'm no expert, but I'd say that their prices won't drop, but their turnaround times will!

[TomB]

I believe DaveG hit the nail on the head.

[RobertB]

You know some how that option escaped me. I think that is what would happen.

[gmarguli]

Yes, there is evidence to support this. The Economy Tier never used to exist. It popped up during a cold period in the market.

 

Will the services lower their prices during a cold market? Probably not, but they might start a new tier. How about "bulk super economy" where you must submit 50 coins (mixed) valued under $100, but get them graded for $8 each?

 

How about specials to encourage world coin submissions?

[BillJones]

The slab companies will not lower what they charge for their services, but historically they have tightened their grading standards during down market periods. It seems that that might be their way to keep prices from falling quite as quickly.

 

This goes for PCGS especially. NGC keeps a bit more of an even keel.

[Oldtrader3]

I am not convinced that a colder market means too-much less revenue for TPGS. They just grade more crackouts and never-been graded coins from collectors trying to create value in a stagnate market. Also, there are more bargains, allowing more descretionanry funds for regrading.

[proofs03-migration]

I believe the coin grading companies that want to stay through the dry times will lower prices. Money is made in volume. The slab boom is coming to a halt. The average person cannot afford to send in entire sets at even $11 a coin. The value in the set will then be out the window, and a collector cannot get out the cost, much less the value.

 

If someone owns a high grade $20 gold piece, yes. If they have UNC or proof Morgans CC, then yes as far as the value being there, but will average buyers be able to buy this high value coin in a slow econemy.

 

I am betting on Mint original packaged sets to become worth more. So many are being cut up that the sets will go up in value because the supply will be dry. I have yet to see anything factory original lose value, and besides, anyone who see's a mint set unopened will know that it is the real thing and can come close to in the grading scale. Look at the modern Eagles, they all seem to fall in the 69-70 bracket according to population reports from the services. It will be fun to see.

 

If you buy to sell, better buy real cheap, if you buy for the enjoyment and future long term investment then I believe it will come full circle and the effects of slabbed coins will be known.

 

Steve

[Dry]

"I have yet to see anything factory original lose value"

 

Go back and read your RedBook.

Hint: Issue price vs. current price.

Another hint: your screen name.