Silver Eagle Coins: Worthy Investment Or Overhyped?

MS70 Silver Eagle coins are graded on a scale from 1 to 70, with a score of 70 indicating a perfect coin. These coins are popular among collectors and investors due to their pristine condition and government-backed purity and content. However, it is important to note that modern bullion coins, despite being in perfect condition, are typically only worth their weight in silver. Additionally, the high mint state of these coins does not necessarily make them rare or more valuable. Investors should exercise caution when purchasing MS70 Silver Eagle coins as investments, as the high premiums paid for these coins may not be recovered when reselling.

MS70 Silver Eagle coins are not a good investment

Secondly, the US Mint is already very proficient at producing coins of exceptional quality right out of the mint tube. This means that even without the MS70 grade, many coins are already in near-perfect condition. For example, over 50% of the 2016 silver eagles graded by NGC received a perfect MS70 grade, with another 29% graded as MS69. This abundance of high-quality coins further diminishes the value and rarity of the MS70 grade.

The high price premium paid for the MS70 grade is also rarely recovered when it comes time to sell. The coins often end up being worth only slightly more than ungraded coins, if not the same, meaning that the initial premium paid is essentially lost.

Additionally, the grading services that offer the MS70 label often include extra cost options such as "Early Release" or "First Strike" labels, which are simply scams to increase the price further. These labels only indicate that the coins were released within the first thirty days, which can often include up to a quarter of the entire annual mintage.

Finally, many of these graded silver eagles will develop milky white spots inside the slab holder after they are graded and encapsulated due to a chemical reaction between the holder material and the coin surfaces. This can negatively impact the aesthetics of the coin and reduce its value. As a result, leading grading services such as PCGS and NGC no longer guarantee the grade on any silver eagle coins due to this issue.

MS70 Silver Eagle coins are a good investment for collectors

However, it is important to distinguish between investing in coins as a collector versus investing for financial returns. While MS70 Silver Eagle coins may hold value for collectors, they are not a good investment in terms of financial gains. These coins are minted by the millions each year, so they will never truly be considered "rare." The high mint state of these coins does not necessarily make them rare or valuable.

The value of a coin is determined by its scarcity, and most MS70 Silver Eagle coins are not scarce. Dealers may charge high premiums for these coins, misleading buyers about their rarity and investment potential. However, when it comes time to sell, buyers will often only offer the spot price, resulting in a loss for the investor.

Therefore, if you are considering investing in MS70 Silver Eagle coins, do so because of your passion for coin collecting and your desire to own a perfect specimen. Don't invest expecting financial returns, as these coins are not a good investment in the traditional sense. Instead, invest in coins that are truly scarce and have a limited mintage.

MS70 Silver Eagle coins are not rare

The high availability of MS70 Silver Eagle coins is further demonstrated by the numerous online retailers offering them for sale. Websites such as eBay, SilverTowne, JM Bullion, and Golden Eagle Coins all have listings for MS70 Silver Eagle coins, often with multiple options available. This abundance of supply suggests that these coins are not rare.

Furthermore, the MS70 grade is the highest grade that a modern coin can receive, indicating that the coin is perfect and has no imperfections whatsoever. While this grade may be desirable to collectors, it is important to note that achieving this grade is not a rare occurrence. Many newly minted coins easily obtain the ideal grade of MS70, as evidenced by the high percentage of coins receiving this grade from third-party grading companies.

Additionally, the MS70 grade retails at a premium price, typically costing 2 to 3 times the cost of a raw coin. However, this price premium is not sustainable, and the high value initially paid for these coins cannot be recovered. If you were to try to resell your MS70 Silver Eagle coins, you would likely be disappointed to find that their value has significantly decreased, with perfect MS70 coins sometimes only being worth slightly more than ungraded coins.

In summary, MS70 Silver Eagle coins are not rare due to their high minting numbers, the large proportion of coins receiving the MS70 grade, the widespread availability from online retailers, and the reality that the MS70 grade is not a rare achievement for modern coins.

MS70 Silver Eagle coins are in high demand

The American Silver Eagle is one of the most sought-after bullion coins in the world, with high demand due to its government-backed purity and content. The MS70 grade is highly sought after by collectors, and these coins can be purchased from coin dealers and auction sites.

The MS70 grade is given by third-party grading companies, and coins with this grade exhibit full, original mint luster with no flaws. The American Silver Eagle coin's obverse features the iconic Walking Liberty design, which was created in 1916 by Adolph A. Weinman, and its reverse features a modern version of the heraldic eagle, refined in 1986 by John Mercanti.

However, it is important to note that the high price premium initially paid for MS70 graded coins may never be recovered if the coins are sold back to the national coin dealers. Additionally, many of these graded coins will develop milky white spots inside the slab holder after grading, due to a chemical reaction. This has led to some companies refusing to guarantee the grade on any silver eagle coins.

MS70 Silver Eagle coins are not valuable

MS70 Silver Eagle coins are not a good investment. While they are graded as perfect with no imperfections, the price premium paid for these coins can never be recovered. This is because there is only a one-way market for these coins, with prices only moving from high for the seller to low for the buyer.

The high premium paid for MS70 Silver Eagle coins is lost very quickly. For example, the MS70 grade retails at about 2 to 3 times the cost of a raw coin, but these coins may only be worth slightly more than an ungraded coin when it comes time to sell. In fact, the Silver Eagle Coin Company calls graded silver eagles "the biggest scam ever perpetrated on the coin collecting community".

Furthermore, the major grading services offer extra cost options such as Early Release or First Strike labels, which are simply scams to get more money out of consumers. These labels only mean that the coins were from the first 30 days of release, which can include up to one-quarter of the entire annual mintage.

Additionally, many of these graded silver eagles will develop milky white spots inside the slab holder after they are graded and encapsulated. This is due to a chemical reaction between the holder material and the coin surfaces. As a result, both PCGS and NGC no longer guarantee the grade on any silver eagle coins.

Finally, modern silver eagles are minted by the millions (approximately 47 million in 2022) so they will never be considered "rare".

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