> Why do graded coins increase in value over years?

Why do graded coins increase in value over years?

Posted at: 2014-12-05 
Some graded coins increase in value, some do not. But there is more to the encapsulation of a coin by the respected companies than just the grade. These coins are deemed authentic. There are tons of fakes in the bullion and rare coin markets, many coming out of Asia. People are willing to pay a premium over the price of a 'raw' coin, even a common one, for the assurance that they are buying the real thing.

'Shouldn't I send all my excellent condition maple leafs to be graded, so in like 40 years they will have like a 4000 premium? haha im new to this so is there something im missing '

There is a LOT you are missing. There is a lot that goes into valuation of coins. You should not be buying until you are educated. There is an old saying, 'Buy the book before you buy the coin.' It means to learn about the coins that interest you before you buy them. Learn the difference between a bullion coin made for the investment market versus a 'bullion' issue made specifically for collectors. Learn the significance mintage figures can have. Among many other things....

Are you "investing" or "collecting"? Go to any estate sale and see the "value" of people's "collections".

Gold has a "value" simply as a commodity that can be used in various manufacturing processes.

The "premium" for gold used in jewelry and coins is basically what you are talking about. Paying "too much" premium and it can take you decades to overcome, if at all.

If, however, our society breaks down: blood in the streets, riots, murder on a biblical scale, and gold and silver coins will be excellent mediums of exchange. Only bottled water, MRE's, certain medications, handguns and ammo will be more valuable.

If you expect the worst, buy all you can get.

While gold coins can appreciate (and depreciate) they generate no income and they have to be "stored" somewhere. Under your bed and they could be lost in a fire, theft or other natural disaster. In a bank vault, and you pay rental fees. (there is no guarantee that ALL contents of bank vaults are not confiscated by an insurgent radical group)

Or you could buy baseball cards or beanie babies.

I recently started to invest in silver, and gold bullion maple leafs.

I noticed that the same regular maple leafs are increasing over years in value if it is graded and in a NGC or PGGC case.

IS there something im missing?

What is the benefit of sending newly made maple leafs to NGC ?

Shouldn't I send all my excellent condition maple leafs to be graded, so in like 40 years they will have like a 4000 premium? haha im new to this so is there something im missing