A hypothetical thought

MORGANHUNTER2

Currently PCGS is holding roughly 16 mil in cash reserve, and probably what another 120 mil in stock?

What would you do if PCGS decided to STOP coin grading and closed the doors forever- teling you all to go pound sand- the grades you have are bogus- we just made em up to drive you to keep resubmitting for the pure profit.

And then the same thing happened across the street!

What would you do if you are the person who is selling coins via internet, coin rags, etc...?


A- Would you crack all your PCGS slabs and buy more albums?
B- Wait for another bigshot company to come in touting they will back everything they grade at full market value- if they are off kilter?
C- Sell what you can to an unsuspecting/non informed person for what you can get and run like the dickens!

Hyperion

I would think words like fraud, good faith and other terms would come into play,
people with deep enough pockets to afford massively expensive coins wouldn't be lawsuit-shy, i think...

roadrunner

Still go on buying and selling just like always. Buy the coin and not the holder.

Even if this scenario unfolded PCGS and NGC coins are far more consistently graded than what you would get from Famous Dealer X or your local Brick and Mortar dealer. The coins already graded would go right on being traded. And people would prefer those coins to raw ones by a mile. It would be a shocker to me if PCGS said they were guessing at grades, but used the best graders in the business to do that. Sorry, not buying it...even if they said they were doing it.

Even without PCGS and NGC backing their formerly graded coins, they would have more weight in the market than what 95% of the sellers could state. Look at the nice first gen slabs, they have more weight in the market than what is sold now. Same for the early ANACS gold foil holders. Yet all 3 companies are really not the same anymore. Yet the old image sells for more money.

roadrunner

tincup

They won't tell you that they were just guessing at the grades.... or that they were making them up, etc. With that much cash reserve, and stock value, they have much capable legal counsel that would never advise them to do so.... and set themselves up for hugh lawsuts.

Could they close their doors though? Certainly, for what ever reason they would want. Although I do not know why they would want to do so, since it is almost a money making machine (add 1 point.... create $$$$ more!)

If in theory they did close up, not a problem. The slabs are still consistent, still graded at the levels most in the hobby/industry agree are the standards, and as such will continue to be in demand and trade on the market place. May actually have more premiums attached. At the same time, ANACS will move into the vacant spot. Or some other new comer.

MrEureka

What would you do if you are the person who is selling coins via internet, coin rags, etc...?

C- Sell what I can OF MY INVENTORY to an unsuspecting/non informed person for what I can get and run like the dickens!

Of course! But I'd hold my collection through the storm, just because I like it.

Oh, and then I'd start my own grading company, pronto!

roadrunner

Eureka Coin Grading Service (ECGS). It also rhymes the same too.

Or Eureka Grading Guarantee Service (EGGS)

I see PGCS a lot now on ebay. Maybe those guys would take over?
Anyone test them out to see how "good" they grade?


roadrunner

PerryHall

If you buy the coin rather than just the holder, you shouldn't really be affected that much.