How much $ exposure does PCGS really have on their grade guarantee?

NIckelCollector

As a collector of only full steps, I have examined my fair share of so called PCGS full step (FS) coins that in my opinion were not. Some were close to full steps but others not.

As an example, I have been looking to upgrade my 1954S MS63FS for years. At the Fun show I examined a MS64FS; it did not have full steps. According to the pop reports there are 22 coins graded higher than mine. I probably have examined 6 -8 of these coins. In my opinion maybe 1 had full steps. I should have purchased that one!

I have had similar experiences with other difficult FS dates. I believe PCGS is the most consistent of the TPGs, but their full step standards have changed over time.

It would seem based on my experience there are many very expensive Jefferson’s graded full steps that could be submitted for grade review and would not get the FS designation today. How much exposure does PCGS really have – not that I’m an investor? But more importantly, will this cause the grade guarantee to change or simply the cost of submissions to increase?

leothelyon

Hi Frank

Somewhere on these forums, I believe DH has said that they pay out hundreds of thousands anually to back their gaurantee. Here's a link!

Regards, Leo

coinguy1

<< <i>How much $ exposure does PCGS really have on their grade guarantee? >>

There is no way to know with any good degree of accuracy or certainty. However, whatever the amount is, it's clearly FAR less than it would be if someone other than PCGS were the arbiter regarding whether PCGS coins had been graded accurately or not.

segoja

Agree with coinguy!

LincolnsRule

I've now seen about a dozen S mint Lincolns in pcgs 67rd from 1969 to 1974 (in hand, pictures of a few more) and not a single one would grade ms67 today. I have 14 coins (Lincolns and a few clad quarters) in for the grade guarantee right now so we'll see how they do (they've been at pcgs now for 5 months).

tradedollarnut

Slow, creeping grade inflation cures all...

stephunter

<< <i>As a collector of only full steps, I have examined my fair share of so called PCGS full step (FS) coins that in my opinion were not. Some were close to full steps but others not.

As an example, I have been looking to upgrade my 1954S MS63FS for years. At the Fun show I examined a MS64FS; it did not have full steps. According to the pop reports there are 22 coins graded higher than mine. I probably have examined 6 -8 of these coins. In my opinion maybe 1 had full steps. I should have purchased that one!

I have had similar experiences with other difficult FS dates. I believe PCGS is the most consistent of the TPGs, but their full step standards have changed over time.

It would seem based on my experience there are many very expensive Jefferson’s graded full steps that could be submitted for grade review and would not get the FS designation today. How much exposure does PCGS really have – not that I’m an investor? But more importantly, will this cause the grade guarantee to change or simply the cost of submissions to increase? >>




I agree with Frank. I have looked at four 53-S coins in Pcgs FS holders in the last two years and none of them have had clean steps in my opinion. Once again, this points out the importance of seeing the coin in hand vs. bidding somewhat blindly (even with good pictures) online.

Bochiman

Hmmm......so, when people see coins that they "know" wouldn't grade as high today, especially in their own collections.....why wouldn't they send it in for the grade review and get the "correct" grade on there and some money back?

Think it may be because of greed? Registry greed or resell later greed?


Just wondering why all these coins that people know PCGS wouldn't grade as high again aren't sent in???

tradedollarnut

Just wondering why all these coins that people know PCGS wouldn't grade as high again aren't sent in???

I think this is the result of this:


nononononononononononononononoyesyesyesyesyesyesyesyesyes
yesyesyesyesyesyesnonononononononononononononononononono

The top line represents getting the higher grade on submission, the bottom line represents getting the downgrade upon review. There is a grey area [bolded] in the middle where the coin won't get the grade on submission, but won't get the downgrade on review.

coinguy1

<< <i>There is a grey area [bolded] in the middle where the coin won't get the grade on submission, but won't get the downgrade on review >>

And that "gray area" is quite large, as well as at the discretion of PCGS.

morgannut2

When that "grey area" gets too big for CLCT's 62 million cash on hand-- then grade inflation bales 'em out. If that doesn't work someday, we'll go to a 100 point system. The guarantee is really for outright mistakes everyone can see, counterfeits slipping through (late date micro-O mint Morgans), and promotion of PCGS product to retail buyers in a form of insurance. I suspect it takes a pretty big PCGS' mistake for a dealer to even bother sending in a coin....