Questions about history of slabs and ACG

Mark

Actually, these questions might be more about the history of slabbing companies. First off, though, let me preface this question with the comment that I was not collecting when slabbing companies were first emerging and so some of my "facts" might well be wrong. So, PLEASE correct any of my errors.

My understanding is that ACG (the Hagers) were the first to develop the concept of the encapsulated graded coin. Other groups encapsulated coins (the government with its GSA dollars) and other groups graded coins (ANACS with grade opinions and pictures of the coin) but ACG put both concepts together. It also is my understanding that PCGS paid ACG some money for the right to be able to encapsulate and grade coins.

OK, now my questions: Is it indeed the case that PCGS paid ACG money for these rights? What rights did PCGS buy? IF PCGS did pay money, did any of the other numerous slabbing companies ever pay ACG money for these rights? If not, how did they avoid paying money?

By the way, these questions have no bearing whatsoever about the current lawsuit involving ACG and many numismatists. My only comment on that lawsuit is that I have purchased only coins encapuslated by PCGS and NGC.

Thanks in advance for the insights any of you oldtimers ( ) can offer about the beginning history of slabbing companies.

Mark

kieferscoins

Conder101. Oh conder101......This is his expertise.

Cameron Kiefer

Mark

Cameron:

I concur that this thread is Conder's speciality. I'm also hoping that a few others, such as Oreville that perhaps were collecting in this period, can contribute. Plus, I think that you ought to bone up on this era also!! ()

Mark

Hoot

ttt

airplanenut

While I'm not sure if any of this is right, if ACG patented the idea/materials to slab a coin, that only lasts 17 years from the date filed. If PCGS paid before 17 years were up, but the other companies didn't come around until after 17 years, the other companies could take the idea for free.

Jeremy

homerunhall

PCGS did not pay ACG or anyone anything for the coin holder idea...which had been used by Paramount for Redfield dollars in the 1970s and I guess you could even say the GSA for CC dollars earlier.

David Hall

K6AZ

But David, it says this on their site:

Accugrade went on to establish the industry standard by which all coin grading services are operated today. We submitted the design for the slab holders for ANA and Blanchard and Co.. PCGS has paid us $100,000 for our expertise, patents, and inventions. With over 9 million coins certified and growing by over a million coins a year, Mr. Hager's invention has generated $160 million in certification fees to those grading services since 1985.

They wouldn't possibly post this if it wasn't true would they?

Shamika

I guess you really can't believe everything you read.

bentasm1

If you believe their grading to be accurate as well then so must their statement on their website.

JadeRareCoin

ACG also states "no major complaints in 18 years", or some BS like that. They forgot to add the fine print: Major complaint is defined as any law suit tried before the U.S. Supreme Court or The International Court of Justice in The Hague, Netherlands.