Dealers preferring specific TPG graders to obtain higher grades
P0CKETCHANGE
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This paragraph in a reputable dealer's recent newsletter caught my attention:
We have noticed many dealers that walk-thru coins at the show for grading trying to figure out which graders are at the show. Their purpose is by figuring out which graders are at the show they can maximize their results by sending in the kinds of coins they could do better on grade wise.
Is this a common or well-known practice? Is it effective? Is it ethical?
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Ultimately the grading services are accountable to everyone--the stake-holders, the customers, the larger numismatic community where their reputations count for a lot. I wouldn't think that dealers would know which graders and finalizers are at a given show. I was told by one of the grading services that there is a different group for express and walkthrough tiers than lower ones.
Yes, some dealers know enough to know who is working the shows. And yes, it can be effective. Knowledge is king in this business.
I've heard it discussed before. I don't think it is common because it really only makes sense for the absolute high end of coins. And the number of coins and dealers that that space can support is limited. Is it ethical? At surface level it is fine. If there's some sort of collusion between the grader and submitter, then that's a problem.
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It is so specific I doubt it would be practical save for a few wins which might tract statistically in line with normal results.
Joe might not interpret/weight luster the same on peace dollars as Billy but Billy really puts emphasis on contact marks in focal areas. What are you getting graded and does that line up with who might get it under their loop?
I think the TPG would take action/training quickly if Billy had a loose reputation vs Joe. Remember professional graders aren’t implementing their standards, they are applying the TPGs. It’s not that NGC graders are worse than PCGSs, it is that NGC standard are less aligned with market expectations.
11.5$ Southern Dollars, The little “Big Easy” set
Yep, I've heard of that. Rumor has it it's pretty effective too.
Coin Photographer.
Not a big secret. Some guys grade Morgans higher, some grade Bust material higher, etc. but unless there's a big upshot in the next grade it usually makes little difference overall. Even then, bear in mind that even in a walkthrough situation more than one person is usually eyeballing the coin so there shouldn't be that much of a discrepancy. That said, some TPGs **in general **are chosen for more/less generous grading...one company's good for another point or two on certain coins, another is known for losing you a point on the cross...etc.
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Whatever the circumstances or setup isn't it still two graders and a finalizer??
It’s analogous to betting sports and knowing who the referees are (info which is available publicly) and that information becomes part of your handicapping.
I have no idea how for someone like me how I would find out who the graders are at a show and it’s not something that I care about.
Historically, the TPGs (NGC and PCGS) did not allow folks to know who the onsite graders would be at a show, if I recall correctly. However, I know this process is done because I have been part of it. If you can send in a coin or two as a test piece then sometimes you gain a tiny edge when seeing the results and might then be more or less aggressive with what you buy, sell or submit at a show. It is not for the faint of heart. It is an extremely uncommon strategy save for the very high end market and/or those in hot pursuit of something and is also not unethical.
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Maybe I wait a week to walk through some Morgan Dollars, but this week I submit Buffs.
I have no issue with this approach.
FWIW... I cut back 99% of my PSA/BGS buying/selling and turned down a job from a national whale sports card dealer after learning the operation of his business.
TBH, nothing would shock me more with coins if there was anything nefarious.
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What exactly is the "news" here? This has been going on for ... well, decades.
That is definitely untrue. Walkthrough is probably most effective on quantities of mid-tier valued coins because you have more shots at "better" grades - in other words, playing the statistics game,
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This year at FUN, assisting a client. it seemed to me that the coins that were submitted on first day walkthrough they were tough, overly tough in fact. However, the coins that were returned back to him from express orders were about right, in fact, maybe even a bit looser on some of the gold twenty's. Im sure it varies.