Is it "right" for auction companies to "second guess" the 2nd Tier grading servi

Longacre

I took a look at a catalog of a major auction house. Most times, when a coin is in a "second tier" holder, the cataloger gives the grade on the holder (in this case it was MS-61) and then writes something like this... "Too many minor handling marks for us to grade this better than AU-55." What do you think of this practice? What obligation does the auction house have to provide its opinion of the grade, when the coin is in a lowly second tier holder? Does the auction house have any obligation to state whether it thinks a PCGS or NGC holdered coin is correctly graded, or high end or low end? What is the rationale behind doing this to the second tier companies, other than perpetuating the market's view that only coins in the "big two's" holders are worthy of purchase?

nwcs

I think they are right to say what they think is their opinion on the item. After all, they do the other side all too often (PQ for grade, should upgrade, nicer than most, etc.).

tradedollarnut

I think that the auction companies run the risk of ruining their credibility [not to mention open themselves up to potential liability] if they do such things as give glowing descriptions of obviously substandard coins. For instance - a coin with visible flaws in a Pr70 holder.

mgoodm3

Doesn't matter what the slab is, if they don't think it's correct, they should say so.

K6AZ

Absolutely. I've never seen an AU55 in a PCGS or NGC mint state holder, but sure have seen plenty in third tier slabs.

SethChandler

Just tell it like it is. If you are correct and truthful, the market over time will appreciate that.

sellsatan

I think it is the auction house's responsibility to acurately represent the coin regardless of whose holder it's in.

PerryHall

<< <i>Doesn't matter what the slab is, if they don't think it's correct, they should say so. >>

DMWJR

Yes they should accurately describe the coin. But, they should be sure to get the consignor's consent to write a description like that. If the consignor refuses, then they should probably return the coin and not put it in their auction.

291fifth

If the coin clearly substandard the auction company should make note of it regardless of whose holder it is in. There are plenty of substandard coins in "major" TPG holders. Just think of how many "crackouts" finally "made" their grade...but shouldn't have.

geb209

<< <i>I think it is the auction house's responsibility to acurately represent the coin regardless of whose holder it's in. >>



+1, and I've even returned a coin in a PCGS holder because the auction house didn't state that it had been harshly cleaned.

Barry

<< <i>Doesn't matter what the slab is, if they don't think it's correct, they should say so. >>


I agree. Some of the auction houses won't sell coins in third tier slabs. It is a credibility issue among knowledgeable collectors.

An auction house that doesn't "correct" the grade of any misgraded slab is a second (or thrid) tier auction house!

EvilMCT

I'm glad they do it and I've seen it done to PCGS/NGC plenty of times. All you have to do is check out an early copper auction and notice the EAC grades.

Ken

TomB

TomB

Sorry for the blank post, above.

I think it is not only alright, but it is correct for an auction house to give an honest description of every coin. This policy should be extended, in writing, to consignors so that they understand the rules and also within the catalog distributed to the numismatic public.

mozin

<< <i>

I think it is not only alright, but it is correct for an auction house to give an honest description of every coin. This policy should be extended, in writing, to consignors so that they understand the rules and also within the catalog distributed to the numismatic public. >>

Shamika

Yes, I think auction houses should continue to second guess 2cnd tier slabs. Unfortunately, they never seem to do it when the coin is in a top tier slab. If the coin has "turned" or has been market graded, the description should at least suggest the coin is overgraded.

I have SERIOUS issues with auction descriptions these days. WAY too much hype.

RGL

Yes ... the auction houses also should second guess "first tier" slabs if they believe the grade overly generous. These people see a lot of the finest coins on a frequent basis and if they have qualms about a slabbed grade, I would like to know ... it also would serve their interests by reducing returns on coins that disappoint.

morgannut2

There is one Company that gave a glowing discription of a coin that turned out to be thumbed badly-- An expensive lesson for me but them as well since I won't bid there anymore. Either give an objective opinion or follow Heritage's lead and say nothing.

roadrunner

Imo it is the company's responsibility to accurately assess the coin's condition whether raw or holdered. It's a cop out to hide behind a misgraded slab....never mind hyping a dog. However doing so would eventually get the firm less consignments not to mention showing that the emperor often doesn't have many clothes.

roadrunner

Myqqy

Looks like one of those rare occasions when everyone agrees- I concur that auction firms need to accurately represent all slabbed coins they sell.....

michael

its all a subjective opinion

the auction company is "stand up"............

if they give their opinion on an overgraded and/or "problem" coin in a plastic holder with another persons opinion on it and the opinions differ

but you do not see many of these "stand up" auction firms around as they are all out of business

fullerfun4

The truth will set you free. The Auction House has a duty, I believe, to accurately represent the item. This doesn't happen much.
Regards
Gary