Grading fees

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toothpuller
toothpuller Posts: 600 ✭
in Q & A Forum
David,

When PCGS guarantees or insures a coin that it holders the company is taking on a risk that a problem could develop with the coin. It is common practice in the insurance industry that the premium [read grading fee] should be commensurate with the amount of risk involved. Why does PCGS charge the same grading fee [assuming the same level of service] for a coin whether it is worth $300 or 100K when the potential loss is so much greater with the second coin?

The easy answer is "we want the best coins in PCGS holders," but aren't the lower priced coins subsidizing the higher priced ones?

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  • homerunhall
    homerunhall Posts: 2,496 ✭✭✭
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    This is a borderline financial question and I really want to stay away from those. However, let me say that we've had the grading guarantee for 17 years. The amount of money we pay out under the terms of our guarantee has been very steady for the last 15 years. We feel it is a cost of business and it's a benefit to our customers.

    To insure that mistakes are few and far between on expensive coins, we have a system of "double verification" for all rare and expensive coins to make sure plenty of graders see the coins and recheck final grades before the coins head out the door.

    David

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