Testing Exit Strategies

[Shoba]

I have just recently started stacking again about 5 months ago. I did get my feet wet in 2011 but spot price was out of control and my stacking adventure didn't go too far (20oz) or so, then I bailed. I think I just went to my LCS to off load the few oz's I had and wasn't very knowledgeable at the time. Only buying coins " I liked " which were mostly Lunars and Pandas because of the looks, but recently I have testing some exit strategies which I believe is just as important as buying PMs. So about a month or so I went to my LCS and took in some milk spotted Arctic Foxes, some 90%, Koalas & Pandas and found out some real interesting things from him. I know the owner of my LCS from casual beer drinking at a local club but we have never really talked Pm's too much. Anyways first I sold him 2 Morgans and a Peace dollar that weren't in the best of shape and he gave me 16$ a piece on those. Mind you everything I took in I got a really good deal on when purchasing, trading ect. Then I asked him what he thought of Milk Spots and what he would give me for the Fox's and I thought this to be interesting. He said he wouldn't even give me spot for those. I think at the time spot was $16.40ish. Now I know how he feels about Milk Spotted coins. He told me resale of them would be difficult and that he couldn't offer me spot and that he doesn't like them. The 2017 Koala he offered me $18. I took in a 2014 Panda he offered $22 & 2017 Panda he offered $20. I thought the prices on the Pandas were fair along with the 90%. I noticed he has a binder with some pages he printed with pricing on them. Idk where he gets them from ect. Because I thought the 14' Panda to be a few dollars more but he showed me the sheet which had bid/ask prices. Anyways just wanted to share my experience and wouldn't care to hear about some of yours. Cheers! 

[Pete]

I assume your Canadian Arctic Foxes were the 1.5 ounce versions ?
If so these had quite a premium over their predecessor the Polar Bear.
Today the Fox is still more expensive but less so than it was.

Since these are sold as bullion coins and are not numismatic the value of a coin to a dealer buying it is based on what he reckons he can sell it for with his margin added.
At worst it is worth its weight at spot and a dealer will always make money.

Since the average buyer is looking for a bargain, buying a bullion coin as near to spot or market price for that particular coin.
My experience of buying coins in a USA shop is that condition is not that relevant to price so I would not hesitate to get the fine silver polish out and gently clean off the milk spots. It will not make the slightest difference to its intrinsic value but more likely to be sold at a higher price.
If the coin was semi-numi or proof then metal polish is a no-go option but for 'run-of-the-mill' bullion with scuffs, dings, fine scratches and fingerprints, who cares ?

[Shoba]

@Pete

That would of been a great idea to at least cleaned them. Yeah the premium on the foxs is higher than the polar bear. I noticed they were selling them on Ebay with milk spots at 25$-$26 a coin, but was nice to see his take on them. 

[CoinFinders]

I agree with "dipping" the "plain" silver coins (bulk silver eagles, etc) to remove the milk spots.  I've bought hundreds of these milk-spot coins (over the years) that were in PCGS/NGC holders, and turned after they were slabbed.  Ironically, I've yet to ever see a milk-spot develop on a coin from an original mint roll.  There must be something with the slabbing process that allows a small spot to develop.  If one bought an MS-70 Silver Eagle and it subsequently developed milk spots, that coin's value is erased down to a spot valued coin.  Most silver buyers don't mind a plain Silver Eagle or Maple Leaf that was dipped, and now still looks like the day it was minted.  I'm stuck with quite a few Proof Silver Eagles with milk-spots.  I can't dip these, unless I want to reduce them to a bullion coin.  Any suggestions out there?  Thanks from Scotty at CoinFinders.  www.coinfinders.com

[sovereignsteve]

What do you use for dipping that gets rid of milk-spots?

[tbone]

1 hour ago, CoinFinders said:

I agree with "dipping" the "plain" silver coins (bulk silver eagles, etc) to remove the milk spots.  I've bought hundreds of these milk-spot coins (over the years) that were in PCGS/NGC holders, and turned after they were slabbed.  Ironically, I've yet to ever see a milk-spot develop on a coin from an original mint roll.  There must be something with the slabbing process that allows a small spot to develop.  If one bought an MS-70 Silver Eagle and it subsequently developed milk spots, that coin's value is erased down to a spot valued coin.  Most silver buyers don't mind a plain Silver Eagle or Maple Leaf that was dipped, and now still looks like the day it was minted.  I'm stuck with quite a few Proof Silver Eagles with milk-spots.  I can't dip these, unless I want to reduce them to a bullion coin.  Any suggestions out there?  Thanks from Scotty at CoinFinders.  www.coinfinders.com

Interesting, I've seen spotting on both slabbed and raw coins.  I think psychologically the slabbed milk spots hurts more, so we notice them more  

By dipping, I'm assuming you're referring to Ezest correct?  I have limited experience with that stuff, very strong (acid), not sure if it removes milk spots. Acetone would be safer but probably wouldn't do anything to milk spots.

BTW, I never understood slabbed BU Silver Eagles

[Shoba]

I noticed that day at my LCS he took one of the milk spotted coins and dipped it into something and came back and said that they are staying on there. 

[sovereignsteve]

I'm pretty sure EZest won't remove milk spots.

[Pete]

I can confirm e-Z-est ( a toxic and deadly acid solution ) will not remove milk spots and stains related to the silver chloride (?) that is thought to be the culprit.

Neither will an ultrasonic bath, detergents, isopropyl alcohol or acetone.
I haven't tried ammonia solution but I believe that will dissolve silver chloride so worth a try.

If a coin is blackened due to pollution like smoke ( sulphur is the culprit ), e-Z-est works a treat.

I saw a video of a person dipping a silver proof and it wasn't affected but it will not remove a milk spot.
 

[CoinFinders]

I use a mild liquid silver cleaner, and "dip" my silver bullion coins on occasion, and have had mixed results with milk spots.  My expert friends tell me the spots are probably from the rinse the Mint gives the silver bullion planchets, and before they are struck as Silver Eagles.  I think we (collectors and investors) are stuck with the milk spots, and they mostly matter to those collecting certified (PCGS, NGC) ASE date sets.  You don't want to do this with a collectable coin, as dipping will take off a bit of the finish of the coin, and ditto with a proof Silver Eagle.  PCGS and NGC will also pick up on this and will grade the coin as "cleaned."