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

 
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Author Previous TopicReplies: 4 / Views: 205Next Topic  
Pillar of the Community
Canada
1749 Posts
 Posted 05/12/2022  8:54 pm Show Profile   Bookmark this topic Add pocket change 50 to your friends list Get a Link to this Message
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!!
Pillar of the Community
United States
4961 Posts
 Posted 05/12/2022  9:12 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
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.
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United States
67573 Posts
 Posted 05/13/2022  08:49 am  Show Profile   Bookmark this reply Add Coinfrog to your friends list Get a Link to this Reply
That sounds about right.
Pillar of the Community
United States
1243 Posts
 Posted 05/14/2022  1:02 pm  Show Profile   Bookmark this reply Add BadDog to your friends list Get a Link to this Reply
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?
Pillar of the Community
Canada
1749 Posts
 Posted Yesterday   01:57 am  Show Profile   Bookmark this reply Add pocket change 50 to your friends list Get a Link to this Reply
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!
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