Why it's hard to market slabs outside the USA (and maybe Canada)...

MrEureka

Think about how slabs won the US market. The market embraced slabs because precise grading and prices for those precise grades were already in place. (CDN and the trading networks on which bids were disseminated.) If a customer bought a coin that was a point overgraded, he probably overpaid, maybe by a huge margin. In other words, slabs solved a preexisting problem.

Outside of the US (and maybe Canada), grading and pricing are not as well defined, so (from a financial perspective) it's no big deal to buy a slightly overgraded coin. No problem, no need for the slabs. At least for most people.

Two questions:

1. Do you agree?

2. Is there a marketing angle for slabs that might work for the rest of the world?

dizzlecc

I agree,

The world coin market seems to be more traditional and not as grade sensitive as the US market.

They/we seem to prefer the older terms of au/bu/choice bu etc. and not get into is the au coin a 50,53, or 55.

I definitely take a different approach to world coins than I do for US coins.

It seems that for US designs like the morgan, peace,etc. They have cookie cutter and well defined grading patterns and it is easier to understand the difference between a 62 and 65.

Then for World coins, the striking and personality of the various designs and mints do not have established lines for grading and therefore grades are debated.

Aegis3

<< <i>Think about how slabs won the US market. The market embraced slabs because precise grading and prices for those precise grades were already in place. (CDN and the trading networks on which bids were disseminated.) If a customer bought a coin that was a point overgraded, he probably overpaid, maybe by a huge margin. In other words, slabs solved a preexisting problem.

Outside of the US (and maybe Canada), grading and pricing are not as well defined, so (from a financial perspective) it's no big deal to buy a slightly overgraded coin. No problem, no need for the slabs. At least for most people.

Two questions:

1. Do you agree? >>



Pretty much. I do blame numerical grading for slabs. But, of course, with that phrasing, I think that slabs mainly encoffinated the problems (too many grades too close together; an absurd grade/price scheme) rather than solving it (getting rid of numerical grades). I'm not too sure how well to compare it to world coins, but the existence of many many coins in uncirculated grades also help; there needs to be some "justification" to price some of them a lot higher than others. I'm not sure if there are any world coins existing in similar high grade hoard amounts like Morgans, Saints, Walkers &c.




<< <i>2. Is there a marketing angle for slabs that might work for the rest of the world? >>



Is "don't use them" a marketing angle?

(Granted, I think there is a need for an authentication service. The problem is, even with the Chinese counterfeiting problem, I think an authentication-only service (and perhaps with some exposition n the surfaces of the coin (NOT GRADE!)) is not one a long-term business can be made from, especially if there are slabbing companies around. The various world numismatic organizations could do one as a non-profit, perhaps with some support from dealer and industry groups and whatnot, and using photocertificates or some sort of ticket that can be placed in a 2x2 ad can be looked up online.)

spoon

Fully agree.

Also, slabs would probably work against European dealers. Folks on that side of the pond realize that there exist a great many more coins that may be brilliant, great eye-appeal, but would nonetheless get a BB from a TPG due to a very minor defect. The standard for perfection needed for something to be slabbed just isn't realistic for so much of the older stuff. And if people were to get their expectations up about having things slabbed, well, that would leave a whole lot of inventory sitting idle or just not getting as much love because it's not up to TPG standards, nevermind it may be near top in it's class.

laurentyvan

I prefer the more relaxed attitude of the European coin community.

Having said that, if I was going to spend really serious money
on a coin, I'd want to get it slabbed for authentication
and attribution but then I'd probably crack it out.

JZrarities

I think money has played the largest part (and I must explain)

US Coin collecting has always been very competetive.

As the value of US coins has risen to larger expense, the 'money has gotten very real' at the upper end.
This drove large price spreads in US coins based upon very small grading differences.
It was this need, when slabs became a requirement.

I often wonder if we would really need slabs, if all US coins cost under $100...
And, I often wonder if the price guides actually exist support the grading services...

IMHO, World Coins don't need slabs, as the price differences for minor grade changes are still very small.
This may not be true for very much longer.

Build a World Price guide with Large Price increases in grades, and then slabs will become a need.
(but please don't. I still enjoy the shallow end of the world coin pool)

coinkat

It will come for certain coins- just not all coins

OchoReales

Post #600!

#1 Yes

#2 Yes, if more and more World coins (espescially the 'high end' coins) become encapsulated then, in my opinion, overseas dealers who see the 'profit margin' in getting their coins graded, will utlimately 'hop on board' the grading train. Not all, but many, will see the financial gain in doing so. US dealers such as Marc Teller and Tom Caldwell seem to be doing well and overseas dealers must be taking note of this.