What Happens To Graded Bullion Prices When It Develops Milk Spots?

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Author	Replies: 6 / Views: 3,614
pocket change 50 Pillar of the Community Canada 1751 Posts	Posted 05/12/2022 8:54 pm Now I've picked up the hobby after a 5 year absence, I have a question? I have done a lot of reading on various forums and have not come across this type of discussion! It seems in recent years it's been the fad to grade bullion coins, even years ago when I was active. Especially what was considered semi numismatic, like Eagles, Australian Lunars, Pandas and Libertads for example. I had done a lot of research and reading on Australian silver stackers forum. Everyone is now talking how virtually all bullion now develops milk spots. Us Canadians were well known for having the worst bullion in terms of milk spots. So far I haven't run across anyone who has found a preventative solution for milk spots. It's a shame as it ruins some very nice bullion!! Now with the popularity of graded bullion , I'm interested in what happens to the value of a MS70, once if developed the dreaded milk spots? Is it considered just worth spot price, pardon the pun? I never understood the rationale behind grading bullion coins. From my understanding a coin can still change once slabbed. Once I heard this I was very disappointed, as I was trying to find a way to keep a coin pristine. I have read about many red cents changing colour even slabbed. I would enjoy reading people's opinions on the value once graded bullion has milk spots. Thanks in advance!! Report this Post to the Staff

hfjacinto Pillar of the Community United States 7297 Posts	Posted 05/12/2022 9:12 pm My local dealer will sell graded bullion (below 70, so 69 and below) for the current rate. Example a 1/10 ounce of gold is spot plus $35, same as raw. I would expect any 70 graded bullion with milk spots will sell for the same price as raw. Só spot and some premium. My Slabbed Dansco 7070 with Gold Page My Slabbed IHC Set My Slabbed 20th Century Type Set Report this Post to the Staff
Coinfrog Bedrock of the Community United States 94367 Posts	Posted 05/13/2022 08:49 am That sounds about right. Report this Post to the Staff
BadDog Pillar of the Community United States 1375 Posts	Posted 05/14/2022 1:02 pm Milk spots will lower the resale value of any graded coin and most raw bullion coins as well (just ask your local LCS). Look at it this way. If you were buying the coin would you pay as much for a milk spotted slabbed 70 versus one that isn't milk spotted? Report this Post to the Staff
pocket change 50 Pillar of the Community Canada 1751 Posts	Posted 05/15/2022 01:57 am Great responses, this is why I don't get why people pay good money to grade bullion, which in time will develop spots! It just doesn't make financial sense to me!! I thought there was a possibility, I was missing something! As I understand, slabs aren't airtight either. Anyone have any good suggestions on how to delay milk spots? I live in a dry climate which is a bonus. It's a downer to have my favourite bullion coin, the RCM 2011 wildlife wolf develop spots! Especially when a year after release they were upwards of $60 cad an oz, or the moose and bison. It was a wonderful series! I figured as much it would revert to raw bullion status. So I truly don't understand why grade bullion coins and pay the high prices for MS 70, when given enough time, it's going to develop spots? Is there any bullion coins which have overcome the spotting issue? My reading has suggested it's cause by not thoroughly rinsing the planchette properly, like for proof collectors coins! I figured I'd ask bullion collectors their opinions, as many have a large bullion collection over several years and will see the physical changes to the coins! Report this Post to the Staff
livingwater Pillar of the Community United States 2264 Posts	Posted 05/17/2022 07:42 am Not all bullion coins develop milk spots, some do, many never will. Canada silver coins are well known to have this problem but I think in 2018 they announced a new process that seems to have stopped it. I have several hundred ASE, no spots. I have a few Britannia with milk spots and a few generics with milk spots. A lot of collectors like graded bullion ASE, AGE. There is a healthy market for them in highest grades. IMO, once graded they are less for stacking and more for collecting. I'm all for grading old coins and error coins, but graded modern bullion is not my thing. From just a stacking point of view, ungraded are going to be cheaper per ounce than graded. A graded coin can change over time, milk spots, toning, which could reduce it's value, profit potential. I have no idea how frequently this happens. Edited by livingwater 05/17/2022 09:27 am Report this Post to the Staff
pocket change 50 Pillar of the Community Canada 1751 Posts	Posted 06/09/2022 02:13 am @living water , it's what I expected the answer was. I'm hoping our RCM mint has conquered the blight which is milk spots!! As their smaller series can be quite nice. Yeah I never understood the crazy of grading a bullion coin, especially when I learned they can change so much in the slab!! A person would need a huge spike in spot to break even. I considered bullion collectors to be most level headed. I never expected the stacker to fall for the grading craze. I understand it for circulation coins, just not modern era non circulation coins! I figured maybe I wasn't seeing something and was thinking too logically? Report this Post to the Staff
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