Why pay $100 for walkthrough grading at a show?

CarlWohlforth

Are there that many expensive, raw coins being bought by dealers who then slab and resell at the same show? Naturally they would have to be expensive to bury the $100 grading fee.

Are there that many coins that dealers think are undergraded and worth gambling the $100 fee hoping for an upgrade?

Are there that many coins that dealers think are in the wrong holder?

Are there other reasons why one would rationally pay $100 for walkthrough grading at a show?

mdwoods

I think a lot of it must be for the thrill. Or maybe they have a customer available right then if the coin upgrades.

sinin1

I think it is to support the grading services.

All coin dealers are rich and they know the services aren't making much money.

Just kidding - don't you think it is because they feel they can add at least $100 to value (on average)?

darktone

Well I would think there are several reason. I would think you could save about $30 or more on postage fee's by submitting in person not too mention the time it takes to package the coin and go to the post office this has got to be worth a few dollars by itself. Also every time I send a favorite coin through the mail I know I am taking the risk of never seeing it again. Also if you buy a high dollar coin at a show raw it would be nice to confirm your coins worth when viewed by a third party. Also everyone seems to think you stand to get a better grade at the show- I have no experience with getting coins graded at a show although I have submitted to ANACS at shows on occasion. mike

danglen

I have heard that grading services tend to be a bit more generous on their "walk through" grades. Don't know if there is any truth to the rumor, but I have heard it on more than one occasion, by people who should know.

roadrunner

Instant liquidity in new or higher grade holder, a quick profit, some buyers (who may actually set the market) are fussy and will accept only certain holders, etc.

Pick most any coin in the thousand dollar and up range. In a PCGS holder you'll get more. Pick say a $10,000 coin in an NGC holder that your are having trouble selling. Maybe it's not even that nice for the grade. You can't sell it but yet a major collector would buy it in a heartbeat in a PCGS holder...and likely at 5-20% more money.

You'll submit multiple times if you
need to. The $100 is a drop in the bucket to move that high priced coin out of inventory. Frankly I did that with a coin at the FUN show on a walkthrough cross figuring that the major (and maybe only) buyer in the country for that coin wants PCGS. It is sort of illiquid in its current NGC state until an NGC accepting buyer shows up. There are a number of major US retailers that are exclusively (or 95% so) PCGS. To my knowledge there are no dealers who deal only with NGC / ANACS coins and will shun the other services unless they see an obvious undergrade. Oh yeah, my $100 attempt failed...but at least they gave me a free PCGS box and pop report for my troubles. Better luck next time Charlie.

roadrunner

agfox

On an expensive raw coin some large collectors want an opinion of authenticity and will have a coin graded right there, then break it back out later. Then on price break coins, where the next grade up may mean thousands of dollars, some folks will purchase a coin that has a possiblility of upgrading, then if doesn't they return it to the dealer, and they are only out 100 bucks. Think of it as a roulet wheel.

CarlWohlforth

OK there is reason #4 (Thanks mike):

The buyer of a raw coin wants the grade certified as an assurance the dealer graded correctly.


As to shipping I did drop off coins at a show, but no rush job for me. It saved me half of the shipping and I knew the coins were in PCGS's hands. They mailed the coins back when they were good and ready.

ksteelheader

Could it be that you do not have to wait 2 or more months. I know that time is valuable to some people, myself included............... Thanks, Ken

roadrunner

Carl, I too saved a bundle in shipping by dropping off coins at the show for "reg" service. I gave PCGS 3 coins to grade at their leisure. I didn't have to drag them home from FUN with me either and take additional risk to (or send them by reg mail at more cost).

I also got to submit 3 expensive regrades together that I would have otherwise had to ship separately by REG mail. It was important to me to have all 3 coins seen as a group since they were all of the same type, era, originality, and condition. While they might miss an occasional coin grouped in a pack of also-rans, they could not help but "see" 3 gem seated halves awaiting regrades.

There was no real risk either since the downside was the orig grade assigned by PCGS. I'm a firm believer in the theory that you have to impress them with a group of similar coins and not allow them to have a reason to miss the grades. Someone recently told me that the services have a tough time when switching gears from coin type to coin type. And I can believe it. I don't think the graders see enough classic coins on a day to day basis compared to the 20th cent. issues.

roadrunner

Lakesammman

Sounds like most of the reasons have been covered. The biggest is the time value of money - can't afford to have inventory tied up for 2 months in a backlog when you have a buyer waiting for the coin.

I'm also convinced that you are more likely to get a break on the grade with a full price submission. PCGS isn't stupid. If they are going to create significant value for you with a upgrade, they want a pound of flesh too. I can't prove it but knowing human nature and how other businesses operate (including my own), why should they be any different/purer??

ah

Several valid reason that were layed out here, thank you!
Mike, carl and roadrunner.

kranky

A wholesaler told me that it's not unusual for him to tell a dealer he'd buy a coin for $X if the dealer gets it into a particular grade holder. So the dealer might submit it on a walkthrough because if he gets the grade he has a guaranteed sale on the spot.

jdimmick

I too, would have liked to have had the oppritunity to walk a coin through at a show service to ensure PCGS slabability before purchasing it. The 100.00 would have been worth knowing right on the spot? Of course you would not want to waste money on a couple hundred dollar item , but a few thousand or more, well worth it in a few cases?

In fact, I have not had the oppritunity to get to a show where PCGS has a booth set up in the past few years. I hope thier in charlotte this month?

Does any one know for sure if PCGS is palnning on taking submissions at charlotte?

In fact, there is one coin that I am looking intently for an upgrade on. If I find it, say in an NGC holder, or maybe ICG. If PCGS is thier, I will gladly use the PCGS show service before purchasing.

jim d

airplanenut

I can think of two reasons...

1- Suppose you want to learn the fine differences between a certain grade of a coin... this is one way to do it (although it would probably be valuable so you would have known before you bought it...)

2- Maybe you can point something out to the grader... "that may be true, but don't forget to consider this aspect..." The grader also spends more than 5 seconds on the coin.

Jeremy

PS- Do 3 graders also look at this service?

kieferscoins

Yes Jeremy, three graders look at it in walkthrough also.

Cameron Kiefer

relayer

A potential buyer may want a quick opinion for assurance.

And as always, there are 3 types of service - good, fast and cheap - but you can only pick two.

Lakesammman

Couple misconceptions there:

First, you don't get to meet or influence the grader.

Second, "same day" or "walk through" is a misnomer. At the FUN show, same day service was more than 24 hours. Good luck finding a dealer willing to let you tie up their inventory for that length of time at a major show.

jbsteven

I did it at Long Beach for 2 coins. One I bought at the show because I was sure it would upgrade (and it did) and another coin that had a big jump if it did (but did not).