American Eagle Bullion

face value? I assume you mean spot value (of silver). Big difference.




+1.

I'm guessing it might be more relevant with proof ASEs, since those tend to be more collectible than bullion and cost a lot more to begin with.

There are three main types of ASEs, bullion (which the mint sells to APs for $2.00 over spot in boxes of 500), uncirculated, and proof (including reverse proof) both of which are struck on specially prepared planchets using specially prepared die and individually handled and packaged and sold directly to the public. The last two are not bullion products, they are numismatic versions of the bullion product but they are not intended to be PM investment vehicles. Typically with modern SAEs, the only coins that increase in value over initial mint prices when graded are those that achieve a 70 (MS or PR). The fact that some people like to collect the bullion coins just as they do the numismatic versions is perfectly understandable. It is no different than collecting high quality circulating coins in addition to the annual mint offerings of special strike coins. MS70 graded bullion coins can be of significant value to collectors but that value has decreased for the more recent years because even though MS70 is a fairly rare grade on a percentage basis for bullion, the sheer numbers of coins produced in recent years means that plenty of those examples are available. The average quality of the bullion strikes has also improved over the years, adding to the number of high quality examples on the market. Early year MS70 specimens are still of decent value because of their relative rarity. For almost all SAE products a grade of 69 or below is worth the initial mint price, whether that be the $2.00 over spot the APs give for bullion coins, or whatever the mint is currently charging for uncirculated or proof products. That means that grading is an expense that cannot be recovered unless a grade of 70 is assigned.

I can't see why you would bother to get these slabbed at about $30 extra per bullion round. You are virtually doubling the cost of your silver investment, which is what these coins are. Simply Silver bullion and not intended to be a coin for circulation.
It may be a way to "Value add" if you want to sell it on ebay but other than that I feel that it is just a waste of money

Not much point in spending $300 to add $5 to the retail value. Sorta like putting $75 gas in the tank of a car so it weighs $10 more at the scrapyard.

Most people don't realize that modern coins in quantities of 100+ of the same coin get special rates, like $3 per. So even if you pay $400 for 20 coins and get two ms70 ($200 per), you can't compete with the guy paying $300 for 100 and getting ten ms70 ($30 per).