A question about PCGS’ variety attribution guarantee...

burfle23

This example was in a prominent auction venue and experts noted it is NOT a type 1 but instead a type 2.

Does this one fall under the guarantee or considered a “mechanical error”?

If covered by the guarantee how is the value determined for the owner?

FlyingAl

PCGS will call it a mechanical error most likely. I don't think I've ever heard of a case where PCGS has paid out a variety attribution guarantee.

davewesen

I had a PCGS 1964-D Washington Type C reverse quarter (MS62 or so) that I used as an example for searching pics on the internet. It took a couple years and better pictures before I realized it was just a well struck Type A. I sent in for review and they fixed it taking away the variety. When I got it back I had to ask customer service about their guarantee as it went from $80 coin to $4 melt coin. They talked it over and gave me credit for one Express grading. No cash back, but as far as I am concerned they paid out a variety attribution guarantee.

Value determined by owner can be determined by actual purchase price, unless you were the original submitter then you lose.

oih82w8

From my experience, you paid for their opinion on the variety. If you disagree...you are wrong...they are paid professionals.

ProofCollection

@FlyingAl said:
PCGS will call it a mechanical error most likely. I don't think I've ever heard of a case where PCGS has paid out a variety attribution guarantee.

I don't know about this variety, but if Variety A is worth $1000 and Variety B is worth $2000 and you bought a Variety B coin for $2000 and found out it was Variety A, then I would expect PCGS to reholder the coin and cut a check for about $1000. If you were the one that had the coin holdered, they would just fix it as a mechanical error. That is my understanding but all guesswork.

burfle23

I reported it to PCGS but the on-line cert remains unchanged...

https://www.pcgs.com/cert/84929572

Barberian

@burfle23 said:
I reported it to PCGS but the on-line cert remains unchanged...

https://www.pcgs.com/cert/84929572

It has to be examined in-hand by their staff.

lermish

@ProofCollection said:

@FlyingAl said:
PCGS will call it a mechanical error most likely. I don't think I've ever heard of a case where PCGS has paid out a variety attribution guarantee.

I don't know about this variety, but if Variety A is worth $1000 and Variety B is worth $2000 and you bought a Variety B coin for $2000 and found out it was Variety A, then I would expect PCGS to reholder the coin and cut a check for about $1000. If you were the one that had the coin holdered, they would just fix it as a mechanical error. That is my understanding but all guesswork.

That should be the case. In practice, it's extraordinarily difficult to get a cent out of PCGS, even when they acknowledge they are in the wrong.

Barberian

@lermish said:

@ProofCollection said:

@FlyingAl said:
PCGS will call it a mechanical error most likely. I don't think I've ever heard of a case where PCGS has paid out a variety attribution guarantee.

I don't know about this variety, but if Variety A is worth $1000 and Variety B is worth $2000 and you bought a Variety B coin for $2000 and found out it was Variety A, then I would expect PCGS to reholder the coin and cut a check for about $1000. If you were the one that had the coin holdered, they would just fix it as a mechanical error. That is my understanding but all guesswork.

That should be the case. In practice, it's extraordinarily difficult to get a cent out of PCGS, even when they acknowledge they are in the wrong.

For this coin, it would require the buyer notifying the seller that their coin was misidentified so that the seller could file a claim. PCGS would also have to see the coin in-hand. That's normally not going to happen for any cherry pick.

burfle23

Looks like they took care of the cert on this one...

And the GC info:

AND:

I suppose the owner doesn't care about the cert/ slab...

FlyingAl

@burfle23

It seems like you're talking about a case where a coin is more valuable than it seems because PCGS screwed up and didn't get the call right.

This happens all the time. Yesterday I saw a 1913 Type One nickel NGC called MS67 that was a gorgeous Proof.

There's no guarantee for that - the submitter has to catch the mistake and fix it themselves. I've had to do this on nearly every one of my submissions, and PCGS/NGC wasn't paying me to fix their mistake.

yspsales

Would GC or Heritage not pull the auction or note the labeling error?
What would be their exposure if they are alerted to an issue?

Just curious (assuming I understand the OP)

One of my collecting Commandments is to know more than the dealer... and by extension to the variety experts as well.

I get it wrong on occasion but it is a form of self insurance.

I don't buy just the label.