If PCGS out of business...how much would you lose with coins stuck waiting grading

ScarsdaleCoin

gee...if pcgs went belly up....who would lose the most $$$ with coins stuck in grading....bet this one raises some eyebrows...

nwcs

Well, they'd get some measure of refund because they would have first grabs of liquidation. Since that's an unearned income account. I'd say whichever dealer last sent in the box of SAE's to be graded.

Sphinx357

If they were to do that I'm sure they'd have to send everyone's coins back and issue some refunds. It's not like they can just decide to keep them all.

Russ

Besides the fact that CU has a boatload of cash, and no short-term debt to speak of - meaning they aren't going out of business any time soon - submitters would lose no money at all since the coins are not part of PCGS's assets. In a liquidation, they simply go back to their rightful owners.

Russ, NCNE

lordmarcovan

<< <i>If they were to do that I'm sure they'd have to send everyone's coins back and issue some refunds. It's not like they can just decide to keep them all. >>

Exactly. I wouldn't lose anything, because they would send my coins back.

If you're askin' how much money's worth I have there right now, the usual answer would normally be nothing, but it just so happens I do have four pieces away at the moment. I only submit only once or twice a year, and then not always PCGS, so this is a rare exception for me.

Right now I have two MS Buffalo nickels (a 1913 Ty1 I hope will go 62-63, a 1935 that should go 64-66), an AU 1874 gold dollar, and a sweet 1904 $20 Liberty that I cracked out of an old PCI MS62 green label holder. I've seen many uglier 63's in PCGS plastic, so I practically know that one is gonna upgrade. Even if it didn't, I can't lose on it. It's the main reason I made the submission.

Total declared value on my invoice is $1295.

nwcs

You would get your coins back, of course, but I think the question was more about the grading fees paid when grading wouldn't be done. In which case you'd get anywhere from partial to full refund depending upon the situation. Of course, all this is hypothetical in the case of CU.

relayer

I would lose thousands and thousands of dollars since my PR70DCAM proofs wouldn't come back in PCGS plastic

Russ

<< <i>I would lose thousands and thousands of dollars since my PR70DCAM proofs wouldn't come back in PCGS plastic >>



That would be a great eBay hook. "This is a PR70DCAM coin and would be in a PCGS holder, but they went bankrupt right before it was going to be put in the slab."

Russ, NCNE

ElectricEye

hmm...interesting question...hard to answer as things do not always go as they are supposed to when a company goes BK...a friend of mine worked at a gun shop that suddenly closed back in the 80's (memory fails me as to when exactly) After the doors were locked for good, customer's guns that were still left in the shop were sold at shows by the owner on a cash only basis.

hmm...if Scarsdale Coin went belly up, who would lose the most $$$ with coins not shipped yet?

Conder101

<< <i> submitters would lose no money at all since the coins are not part of PCGS's assets. In a liquidation, they simply go back to their rightful owners >>


Not quite so simply and the company would first be handed over to court appointed liquidators and you may not get your coins back for six months to a year or more (possibly faster than PCGS would have gotten them back to you. ) In the case of a bankruptcy your grading fees would most likely be lost.

misterR

The main reason why I do not plan to let so many of my coins stack up in their vault.
PCGS needs to get their act in order.

joeyuk

I think they would stop accepting submissions first to let the coins in the system finish. I would be more concerned lost value in already graded coins with no grade guarantee. Joe

PS In liquidation do you think empty slab shells with the pcgs logo could be legaly sold? We have enough people trying to make coin world slabs look real.

Conder101

<< <i>PS In liquidation do you think empty slab shells with the pcgs logo could be legaly sold? We have enough people trying to make coin world slabs look real. >>


Inteesting question. I think the liquidator would consider them to be an asset of the company and I can't think of a legal reason why they would not be able to sell them. Since the company would no longer be in existance and the grading guarantee would no longer be in force, they would might not be overly concerned with people putting coins into the surplus shells.