Does PCGS finance coin collections?

RYK

Not that I am personally interested, but I have heard rumblings that some major coin collections are actually financed by PCGS, whereby the coins are held at PCGS while the owner makes payments on them. Is this true and to what extent?

robertpr

Never heard that one before.

IGWT

The closest thing that I've heard is that major players will park their coins at the TPGs for convenience. I don't even know if that much is true.

coindeuce

Some of the major auction houses will loan funds on coins as collateral, but typically only on large scale deals where the probability(or a contract) exists that the auction house may receive consignment of some or all coins from a financed deal. I beleive that the TPG across the street just announced the formation of a subsidiary that will finance loans of $50K or more to dealers who have coins of high market value submitted for grading, when the dealer can justify that the time frame for grading such coins may affect their ability to remain active in the market. See the announcement in COIN WORLD August 28 issue, page 64. "Firms combine to expedite loans for bullion, rare coins."

tradedollarnut

Read their annual reports and you will see all.

DMWJR

PCGS will park your coins if you are a margin player. If you are a collector, keep your coins to yourself.

stephunter

See here.

Pcgs financing

Fletcher

<< <i>Not that I am personally interested, but I have heard rumblings that some major coin collections are actually financed by PCGS, whereby the coins are held at PCGS while the owner makes payments on them. Is this true and to what extent? >>



Yes, it is true. 20% down and payments of 1/6 of the balance per month @ 1%.

coindeuce

Fletcher, you misinterpreted the topic of the thread. You're referring to Heritage's Extended payment plan on auction purchases of $2500+. Has no connection to financing based on coins or bullion as collateral. Check out the link that Stephunter posted. You might want to read my post regarding NGC's similar finance Corporation also.

coindeuce

There are also a few dealers who offer financing based on coins/bullion as collateral, and they're not shy about their terms. Typically they want at least 2%/month to finance 60% of the CDN BlueSheet for your coins/bullion collateral.

MrEureka

Given the conflicts of interest, this is an odd line of business for PCGS to have pursued.

IGWT

-- "Given the conflicts of interest, this is an odd line of business for PCGS to have pursued." --

I'd like to read the contract that conveys a security interest in the coins to PCGS. Any kind of interest begins to smell like coin trading. What would happen if a borrower were to default? I assume that PCGS would take the collateral, judiciously regrade, and sell the coins. There aren't many lenders out there who have the power to change the value of the collateral they hold as security for a loan.

coindeuce

BAJJERFAN

<< <i>I assume that PCGS would take the collateral, judiciously regrade, and sell the coins. There aren't many lenders out there who have the power to change the value of the collateral they hold as security for a loan. >>



I'm sure they probly have a pretty good idea of how the coin will grade BEFORE they close the deal so unless the market for the coins totally collapses during the life of the loan, I doubt that they are gonna call a 65 a 66 just to recover the funds owed them. I also suspect they monitor the value of the collateral on a regular basis so that they don't get left holding the bag.