Is there really politics at play at PCGS??

jamesfsm

I keep reading here that there is politics at play at PCGS. To me, in plain language, politics at a grading service means that some are given preferential treatment by receiving high grades in exchange for volume business- in plain language favortism. I have not heard and do not think this sort of thing occurs much if at all.

Rather, the "tight" v. "loose" issue does seem to have some economic influence/effect. As Frattlaw said, grades seem to get "tight" when demand is high to build a frenzy for yet even more coins (as well as to encourage the bull market by creating confidence in the product) and seem to get "loose" when demand is low to encourage submissions in a soft market where submissions are otherwise light. Frattlaw's economic theory at least is logical (to me).

I'm sorry but I just don't see "politics" at play here. I'm curious if this broad use of the word "politics" perhaps is meant to mean something I have not considered.

Bear

When I use it it means competative twist and turns to outfox

the other major grading companies. I really dont believe that PCGS is

giving out more favorable grades to the big kids.

littlewicher

The more political aspect of it is the crossing over, mainly with NGC coins. David Hall has expressed his hate towards NGC. I think that there are politics at play over this issue. They want to try to create a false premise that PCGS is so much tighter then NGC.

FrattLaw

It wasn't politics I was referring to -- it was greed. Is greed at work @ PCGS? You bet your little sweet petunia, it is.

The tight vs. loose theory helps PCGS all around. When grading is tight and people know it, they look to buy PCGS coins in order to get the upgrade, it also lowers submissions, which does work well for PCGS since they are running 50 days behind on Economy and they are short a couple of graders, so they have plenty of work to keep them going.

It also creates market share, more people want PCGS coins then any else, sales stay strong, value stays high, submissions will continue.

Then, those that submit coins regularly know when the window opens for higher grades and they then flood PCGS will coins they had been holding back on. Thus, getting their coveted grades and PCGS gets more $$$.

By the way, did anyone notice that just as HRH took over from RM, turnaround times were fine and then he comes out on this Board and says -- "hey there should be more 70s" and low and behold there are, and now submission wait times are at 50 days.

By the way -- littlewitcher -- PCGS does not want you to believe that crossovers from NGC are useless. That's a lot of revenue if everyone just up and decided never to try to cross or crack out an NGC coin and try to get it in a PCGS slab. Matter of fact HRH also posted that he personally chose 50 coins that were in NGC holders for cross and low and behold they crossed - so the message is simple keep sending your NGC coins because they just might have a chance and we'll love to make more money refusing to cross them. Hey PCGS won't have to pay for a slab or for someone to put it in one and they make more $ that way.

Michael

tradedollarnut

Matter of fact HRH also posted that he personally chose 50 coins that were in NGC holders for cross and low and behold they crossed

I think he said that 30 crossed. What he forgot to say was that all 50 were submitted under "cross at any grade"!

Bwahahahahahahahaha!!!!!!!

tradedollarnut

But more seriously: I think that's almost statistically impossible. Including those 30 coins that crossed, the crossover percentage (excluding cross at any grade) for classic coins has got to be hovering around 5-10%. Anybody care to do the statistical analysis on 30 out of 50 crossing with even a 10% chance of a coin crossing? The lottery would look good by comparison.

I once heard of a dealer that had the same fortune to have DH review their coins. They went zero for twenty on the initial pass thru the grading room! Do you think maybe he didn't hand them personally to the graders and say the magic words?