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A hypothetical question on grading fee "collection"
planonit
Posts: 525 ✭✭
Just like winning the Powerball winning the coin lottery is rare. Most of know we will die before we find a 1943 Bronze in a roll, BUT it does happen. Low-level collectors, novices, or people going through Dad's coin collection do stumble on big ticket coins.
I've always wondered what happens if they take it upon themselves to submit a coin and when it comes back in the "Rarities" status (Over 100k in value) PCGS charges a subcharge of 1% of the PCGS value. What happens if they can't afford it?
Maybe some random collector submits a 1817 Half at the "Economy" level and unknown to him it is an 1817/4 and when PCGS slabs it wants that 1% (Which could be well into the thousands). What if they guy can't afford it? Does PCGS refused to slab it? Hold the coin?
I've always wondered what happens if they take it upon themselves to submit a coin and when it comes back in the "Rarities" status (Over 100k in value) PCGS charges a subcharge of 1% of the PCGS value. What happens if they can't afford it?
Maybe some random collector submits a 1817 Half at the "Economy" level and unknown to him it is an 1817/4 and when PCGS slabs it wants that 1% (Which could be well into the thousands). What if they guy can't afford it? Does PCGS refused to slab it? Hold the coin?
I have plans....sometimes
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That's an example of the only smart time to borrow money - to make money.
"Everything is on its way to somewhere. Everything." - George Malley, Phenomenon
http://www.american-legacy-coins.com
The question is legitimate and rather silly at the same time. The possible number of chances of this happening or having happened over the company's 30 year history are in the fractional percentile of the number of coins graded in total. Knowing that our host's business model leans heavily toward PR marketing (they are publicly traded ya know), it should be obvious that they would far more likely opt for the media exposure from grading such a coin than trying to collect a few extra bucks from Joe Sixpack.
Oh I agree but I'd bet that PCGS grades quite a few coins with a PCGS Value of over 100k each year still and I don't think every coin that comes in over 100k they get a ton of PR from. Imagine is just a very expensive but obscure variety coin. Maybe it is a pattern coin. Maybe it is a expensive DMPL Morgan.
It is an interesting question: what do they do? I actually have a hard time believe it has NOT happened in the past? I mean in all their years and all the coins they grade no low-level collector has ever submitted a coin they thought was worth a few hundred or less and it turn out to be worth 100k+?
What do they do? Does PCGS contact the person and say "Hi but your coin is worth way, way more than you thought. Instead of the $42 you owe us you actually owe us $250 + an addition $1250 because the PCGS Value is 125k and until you pay it we are keeping the coin."
It is an interesting question and I would love to know the answer. I am not attacking PCGS in anyway I am just curious what they do (or have done) in such a situation. Maybe the submitter simply can't muster $1500 to pay for the grading (Plus NOW the cost of shipping insurance is going to shoot up to what--at least $100 or more right?)
ANA 50 year/Life Member (now "Emeritus")
1. They've taken the coin to a PCGS member who can submit it for them. That person would logically have some basic coin knowledge to recognize it being a super rare coin.
2. If they joined PCGS to submit it themselves, then they would have navigated around on the PCGS website enough to have discovered the Price Guide and looked up their coin.
3. Some disinterested person with one of grandpa's coins is very unlikely to think about sending the coin to PCGS for grading. Someone reasonably knowledgeable would need to be involved in the discussion to talk them into submitting it for grading.
4. The most likely scenario is that they take grandpa's coin to the nearest shop advertising that they buy gold & silver and sell it for whatever the person offers.
If this scenario has occurred, I expect it falls into either of 2 categories: (1) Someone totally makes a mistake in submitting the coin like overlooking the mintmark or some attribute, or (2) the person is jut being naive or dishonest in trying to get it graded for a lot less money.
I don't think it's a realistic scenario that someone wouldn't be able to come up with the 1%. Supposing someone sends in grandpa's super rare coin as Economy grading and it's a $100,000 coin so they'd then owe $1,000 in additional fees. But, for someone to submit a coin, the following must have occurred...
1. They've taken the coin to a PCGS member who can submit it for them. That person would logically have some basic coin knowledge to recognize it being a super rare coin.
2. If they joined PCGS to submit it themselves, then they would have navigated around on the PCGS website enough to have discovered the Price Guide and looked up their coin.
3. Some disinterested person with one of grandpa's coins is very unlikely to think about sending the coin to PCGS for grading. Someone reasonably knowledgeable would need to be involved in the discussion to talk them into submitting it for grading.
4. The most likely scenario is that they take grandpa's coin to the nearest shop advertising that they buy gold & silver and sell it for whatever the person offers.
If this scenario has occurred, I expect it falls into either of 2 categories: (1) Someone totally makes a mistake in submitting the coin like overlooking the mintmark or some attribute, or (2) the person is jut being naive or dishonest in trying to get it graded for a lot less money.
That is if they don't have a membership. I know tons of novice collectors with a membership. That also is a bit of a stretch.....there are plenty of collectors who might miss maybe a very rare EAC variety for example
Also, maybe they know it COULD be rare (maybe they find a 1943 Copper for example) but they don't have the money to pay for the higher tier grading service especially because they know it MIGHT NOT be real.
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Interesting question and I also wonder if an economy tier coin every make the 100K level.
+1
I'd like to have a problem like that! I would find a way to "bail out" a coin that was worth that much to create such a fee.
...also +1
I'd like to have a problem like that! I would find a way to "bail out" a coin that was worth that much to create such a fee.
...also +1
I can't believe it has never, ever happened. It seems like it has to of occurred at some point.
course that family had money as he was a contractor anyhow
But I could see this as a potential scenario in the OP's intitial post , somebody submitting economy on what turned out to be a rare coin, not knowing.
Cause I can tell you I get folks all the time who come in with coins that they think are worth something, (most of the time not) but they want to submit it, and when I tell them the cost(35-40 bucks) to submit, they decide not too.
3. XF45 NGC. Jefferson Coin and Bullion, to a private collector. This is the present specimen, its first auction appearance, and to the best of our knowledge its first plated appearance. This may be the Connecticut Dealer (Lumadue) coin mentioned by Winter and Bowers.
This is the 3rd finest known specimen of 5 total (a 6th rumored). I think it sold for around $100K way back then. It recently fetched $218,500 in 2010. I can't say what the original owner actually was paid for it, but it wouldn't have made its way to a TPG and "surprised" the submitter.