Conflicting statements on Conflict of interest
DRG
Posts: 817 ✭
Some of you have mentioned that you feel it's a conflict of interest for Collectors Universe to own PCGS and also Bowers and Merena and David Hall Rare Coins. We have addressed this issue before, but we can do it again.
Here's how we avoid the possibility of conflict of interest.
WE NEVER SUBMITT COINS THAT WE OWN TO PCGS FOR GRADING. WE ARE NEVER OUR OWN CUSTOMER.
All of the PCGS coins that B&M and DHRC sell are purchased in the secondary market. We buy coins from the people (usually dealers) who have PCGS coins for sale. If we buy a raw coin, we sell it raw. If we buy a coin in an NGC holder, we sell it in an NGC holder. If we buy a PCGS coin that looks like it has upgrade potential, we put it in a B&M or Kingswood auction and hope at least two bidders will make sure the coin brings a premium price. We do not use any type of PCGS grading for coins we own.
The above is a quote from David Hall from a thread titled "Conflict of Interest" dated 11/14/2003. Below is a quote from David Hall from a thread titled "The truth about crossovers, tight grading" dated 3/4/2003.
At the Long Beach show I went thru a major dealer's inventory of NGC and ANACS coins . I picked out about 50 coins I thought had a chance to cross (actually only one was an ANACS coin.) I took them into the grading room and told the graders, "I've picked out some nice NGC coins out of a dealer's inventory. See what you can do." and nothing more. A day later they had crossed over 30 coins, including one upgrade...a 1917 T1 25C that went from NGC 66FH to PCGS 67FH. This showed me that...
Here's how we avoid the possibility of conflict of interest.
WE NEVER SUBMITT COINS THAT WE OWN TO PCGS FOR GRADING. WE ARE NEVER OUR OWN CUSTOMER.
All of the PCGS coins that B&M and DHRC sell are purchased in the secondary market. We buy coins from the people (usually dealers) who have PCGS coins for sale. If we buy a raw coin, we sell it raw. If we buy a coin in an NGC holder, we sell it in an NGC holder. If we buy a PCGS coin that looks like it has upgrade potential, we put it in a B&M or Kingswood auction and hope at least two bidders will make sure the coin brings a premium price. We do not use any type of PCGS grading for coins we own.
The above is a quote from David Hall from a thread titled "Conflict of Interest" dated 11/14/2003. Below is a quote from David Hall from a thread titled "The truth about crossovers, tight grading" dated 3/4/2003.
At the Long Beach show I went thru a major dealer's inventory of NGC and ANACS coins . I picked out about 50 coins I thought had a chance to cross (actually only one was an ANACS coin.) I took them into the grading room and told the graders, "I've picked out some nice NGC coins out of a dealer's inventory. See what you can do." and nothing more. A day later they had crossed over 30 coins, including one upgrade...a 1917 T1 25C that went from NGC 66FH to PCGS 67FH. This showed me that...
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