Forum Member question about the future

Coin Finder

In most companies when someone at the top leaves it usually means that company may be going into a different direction. I didnt see the CLCT stock dip that much on Rick M,s resignation although is has been in a down hill slide for , well, since the begining. It seems to me the grading system is in place and will continue to run smoothly and consistantly as is has been. I do not think people outside of the graders and the "system" can really change the product and value of said product without drastic changes. Perhaps the directon PCGS is going will benefit all of us.

What is the worst thing that could happen to PCGS and then what is the best thing that could happen? Post them here.

Tbig

nwcs

The worst thing is a total collapse. The best thing is if they decide to attack their problems with vigor and inject enthusiasm into the world of certified grading.

braddick

The worse would be sloppy grading. Inconsistancy is bad enough, couple that with poor grading skills and you've got real trouble.
(I don't see that happening though. Like a Phoenix, PCGS will rise above the ashes.)

prooflike

The worse thing that could happen in ACG bails PCGS out.

I don;t think anything positive can come out of it, consistent grading would mean a loss of revs.

dorkkarl

uh, the best thing would be a total collapse..... bwuahahahahhhahhahahahhahaha!!!

K S

TRADERBOBZ

i think i will go ask my magic 8 ball what is going to happen.

CharlieB

The worst thing that could happen to PCGS is if they start
calling a 64 a 65 in order to compete with NGC. The best
thing that could happen to them is if they abolished the
practice of deliberately downgrading the coins you send them.

Android

<< <i>The worst thing that could happen to PCGS is if they start
calling a 64 a 65 in order to compete with NGC. >>





<< <i>The best thing that could happen to them is if they abolished the
practice of deliberately downgrading the coins you send them. >>



Charlie, Isn't what you are saying the same thing?

Andy

gemseeker

Best thing that can happen - PCGS buys out ACG
Worst thing that can happen - ACG buys out PCGS

BWWWAAAAAAAAHHHHH

DHeath

Worst thing? PCGS is spun off from CU and is sold to non-collector investors.

Best thing? PCGS aggressively takes up the banner, and initiates a new round of innovation and competition, raising their and their competitors quality.

FrattLaw

D-

Why would CU divesting itself of PCGS be the worst thing? Personally, I believe that CU's holdings and ownership in rare coin dealers, rare coin auction houses and a supposedly independant third party grading company almost requires them to spin off PCGS.

Can it really be called independant if on one side of the building they are grading coins that are being sold out of other side of the building.

Its funny no one likes the Mint competing with dealers for their goods but no one minds competing with DHRC and the coins his company grades thru PCGS.

Perhaps this is why inconsistent grading is good for PCGS, that way if DHRC's coins get a bump from 65 to 67, no one is the wiser.

My 2 cents again,

Michael

MW Fattorosi Collection

DHeath

Michael,

I guess I just always thought of PCGS as dealer owned, and in the back of my mind, I've always assumed (maybe naively) that the check and balance that prevented malfeasance was the coin in the holder serving as a constant testament to the quality of the service. Wouldn't an obvious overgrade be resubmitted by a collector under grade guarantee, or consistent overgrading diminish collector interest in PCGS coins, thereby killing the golden goose? Maybe not. In some ways, I feel the involvement of coin dealers as opposed to accountants probably helps the service maintain credibility. I don't know, I just think the possibility of conflict of interest doesn't necessarily mean it exists, especially when the companies involved are publically traded. As an aside, the potential will always exist for whoever owns the company to grant favored status to certain submitters. I certainly understand though how it would make many people uncomfortable.

FrattLaw

I'm not suggesting that PCGS is an inherently evil and warped company that always undergrades non-CU submissions and overgrades CU submissions but I do question the possibility for malfeasence.

For example;

CU owned and operated dealer purchases X coin for $2000 and submits X-coin for grading. X piece is to be sold at auction by CU owned dealer. Perhaps X coin is a solid 64 and could sell for $4000. However, if it were a 65 it would sell for $34,000. For 1 grade tick, CU increases bottom line profit from $2000 to $32,000 on that coin.

I purchase X Coin and think gee it's really a 64 and I want my money back. So I submit the coin to PCGS for review. Who reading this thinks I'll be getting a check for $30,000?

I actually posted this question to Rick during one of his open Q&As, I never did a response.

Am I the only one that thinks this could happen on a limited basis? And if it does, PCGS is no longer an independant 3rd party grading service. I'm sure PCGS does an excellent job of grading. But it bothers me that they are the market-makers for grades and to a certain extent CU is becoming a powerhouse in the retail end.

As the saying goes - It's like the fox guarding the henhouse!

Why does PCGS and NGC not allow their graders to be coin dealers during their tenure. Both companies know that the inticement for money is too strong for most of us weak-willed mortals.

Will we ever know why RM left for NGC.

Michael

MW Fattorosi Collection

EVillageProwler

A couple of years ago, I owned the Litrenta 1873-CC Trade Dollar. In my opinion, it was a lovely coin with clean surfaces and excellent luster. The problem was that it had an even orange toning that seemed A/T -- though I don't see why since it obviously wasn't dark enough to hide anything...

Anyway, the coin was slabbed MS62 by ANACS. I could not get it to cross to PCGS. One dealer suggested that I consign it to a Kingswood auction so that the coin would have a better chance of crossing. This dealer told me to put a high enough reserve such that if it did sell, then I wouldn't mind parting with the coin. Another dealer also though that this was an excellent idea. (Kingswood, btw, only auctions PCGS-slabbed coins.)

It seems like the notion of conflict of interest isn't just with us puny collectors!

BTW, I never tried out this idea. A third dealer eventually sold it for me and made me a profit of almost 42%!

EVP

PS I often wish I had the guts to dip that coin to see how nice it would come out. If only there was an NCS then!