Yearly cost to PCGS for "guarantee regrade"?

coinguy1

Hi David,

This has come up in conversations/posts from time to time and I have seen different, widespread estimates given, so I'm wondering - how much did PCGS spend on downgrades and buybacks each of the last three years, under your "guarantee regrade"?

Thank you.

homerunhall

Mark...Though as a public company I cannot answer most financial questions, I believe this one is OK for message boards.

I do not know the exact number, but as I remember it, PCGS has paid an average of about $150,000 a year buying back coins under the terms of the PCGS grading guarantee. The number varies from month to month, but has actually been very consistent on a annual basis over the last 12 years. Our auditors make us take a reserve for the anticipated buy-back amounts.