why the 100 point grading system?

darktone

I don't think it's to increase submission numbers so much but rather to make money for the big dealers. All the stuff right now is maxed out at the current grade levels. Create a new scale of grading and it will be like it was when slab company's first came out- the big dealers will make a ton and the same cycle will occur again when all the big money coins are maxed out grade wise again- then it will be the 120 point grading scale. I think all collectors and small dealers are happy just the way it is. I know I will not deal in any coins graded on the 100 point scale- buy or sell. Mike

DHeath

Mike, that's right. If I were Mr.Hall, and I intended to make this change, I'd lay the idea out in the forum and let it mature, hearing all the arguments for and against and letting the community "adjust" to the possibility. I'd then make a rational argument for it in Fla. whether I adopted it immediately or waited 6 mos. The argument is as follows:

You own a coin in a 65 holder that's a liner 6. In 5 it's worth $800. In 6 it's worth $10,000. PCGS realizes this gap is too large, and they realize the value of their service is to help sellers and buyers accurately price coins. If they don't accomplish that goal, they have no value add. PCGS realizes the damage done to the submitter if they call the coin a 5, and the damage done to the buyer if they call it a 6. Rather than encourage 20 resubmissions hoping to get the coin moved into the right/wrong holder, wouldn't it make more sense to holder the coin 65.7?

Theres the pitch.

It is bad to see a coin that shouldn't bump get moved and re-auctioned for thousands more because of the plastic.

If the system changes, for the submitter, the worst the coin could reholder would be 65, and the possibility the coin would move up a fraction would be huge, so of course resubmits would happen in volume.

pharmer

I've wondered about the possibility that big dealers, as you put it, would go along, making our opposition inconsequential to DH. Pray tell, who are some of these bigs? Although I've sort of been paying attention, here and on ebay, I'm at a loss to identify them as such. Do the auction house submit a lot? Ernie? Centsless (sp?)?

darktone

<< <i>You own a coin in a 65 holder that's a liner 6. In 5 it's worth $800. In 6 it's worth $10,000. PCGS realizes this gap is too large, and they realize the value of their service is to help sellers and buyers accurately price coins. If they don't accomplish that goal, they have no value add. PCGS realizes the damage done to the submitter if they call the coin a 5, and the damage done to the buyer if they call it a 6. Rather than encourage 20 resubmissions hoping to get the coin moved into the right/wrong holder, wouldn't it make more sense to holder the coin 65.7? >>





I see what you mean Don but I would rather see it go back the other way. Only having grades of MS60,MS63,MS65 and MS67 would probably do a better job of getting the coin in the area of it's value and then you could price it higher or lower as needed depending on the quality. As it is now the whole price of the coin depends on the grade the slabbing company puts on it. Of course this will never happen unless we could go back in time to the 80's and before. You know once more grade catagory's are made they will never dissapear and only end up costing us more to buy.

RedTiger

<< <i>I don't think it's to increase submission numbers so much but rather to make money for the big dealers. >>



Um, aren't these the same thing? The entire TPG industry is a marketing machine, primarily for the big dealers. The grading is secondary.

kranky

<< <i>You own a coin in a 65 holder that's a liner 6. In 5 it's worth $800. In 6 it's worth $10,000. PCGS realizes this gap is too large, and they realize the value of their service is to help sellers and buyers accurately price coins. If they don't accomplish that goal, they have no value add. PCGS realizes the damage done to the submitter if they call the coin a 5, and the damage done to the buyer if they call it a 6. Rather than encourage 20 resubmissions hoping to get the coin moved into the right/wrong holder, wouldn't it make more sense to holder the coin 65.7?. >>



And why is the coin worth 12.5x more if it's one point higher? Probably the pops. And who determines the pops? The TPGs. I'd bet that the price differential wasn't anywhere near that amount 10-15 years ago. The TPGs caused that, and now we're going to say we need more grades to "fix" it? That's like getting more firemen instead of catching the guy with the matches.

If we're going to concede that coins can't be priced accurately because more MS grades are needed, then we're saying we don't know what the heck we're doing and we need TPGs to tell us what a coin is worth.

Why isn't the 65.7 coin worth $5000 now? The coin is what it is. If no one will pay $5000 for it in a 5 holder today, but will do so if it's in a 65.7 slab, that means the crackout game will rise exponentially. The same people that try that coin 20 times to get the 6 will still try it multiple times to get that extra two or three tenths. It's still going to mean thousands of dollars if people need the slab grade to tell them what to pay.

The fact is that TPGs cannot grade the same coin exactly the same TODAY. That's not their fault - the system already demands more precision than is humanly possible. Splitting them finer will clearly mean even more coins will grade differently upon resubmission! So how does that improve anything?

I'll be convinced that TPGs have it mastered when buyers will not hesitate to break a coin out of the holder after buying it. After all, if they can nail the grade every time, it should be no problem getting it back into the same holder, right?

DHeath

Kranky,

I gotta admit, it would suck to crack out a 65.9 and have it come back 64.2.

michael

mostly to limit liability and then for huge submission increases

MrEureka

The entire TPG industry is a marketing machine, primarily for the big dealers. The grading is secondary.

First, I doubt that the TPG's would agree that their primary function is to help dealers. Last time I checked, they were more interested in helping their shareholders.

Second, why do you say the TPG's are primarily serving the big dealers? People who can't grade will still insist on on slabs when dealing with small dealers.

MrEureka

I don't think it's to increase submission numbers so much but rather to make money for the big dealers.

I have yet to hear a single "big dealer" argue for a 100-point scale.

sinin1

In a Q&A post, I thought Mr Hall stated the MS coins would just be 30 points higher and the other 30 points would be at the bottom of the scale - ?


big difference between P01, B02, AG03, G04


as we advance toward metric, 100 points seems more logical

Preussen

<< <i>...wouldn't it make more sense to holder the coin 65.7? >>



God help us all - Preussen