If a green bean means they agree with the grade, why do you pay a premium for it?
gtstang
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gtstang
Posts: 1,784 ✭✭✭✭✭
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My guess is because a lot of folks don't know how to grade properly, so they like the added insurance.
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
The CAC green bean signifies that CAC deems the coin solid for its grade (i.e., not low end). More importantly, it signifies that CAC potentially wants to market the coin---this may make the coin more liquid, which is good for the owner. Further, some altered coins (AT'd, puttied/thumbed, coppers with artificial red) look great when graded soon after being worked on, but then turn some time later. CAC helps to weed these out.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
"If a green bean means they agree with the grade, why do you pay a premium for it?"
If you believe your title reflects the entirety of the CAC service then you don't completely understand the CAC model.
In honor of the memory of Cpl. Michael E. Thompson
Why would anyone who knows how to grade want anything less than a solid for the grade coin? There is no reason to pay a premium but there is a good reason to want a discount for a low end of grade coin.
As stated by others, it is also a second pair of eyes for determining puttying, retooling, artificial toning, authenticity, etc. In this regard I think CAC is very useful.
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
if you have to, only pay premiums for coins you like. the sticker(s) should just make you feel a little better about it.
We are all human and sometimes we miss details, small or large, a second or third opinion may be appropriate
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
This.
CAC's known strictness in stickering 19th century gold is another factor in their favor when I select coins for my collection.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
Many coins in holders are overgraded. An inevitable result of crackouts and resubmissions.
Not so much (or at all) with CAC stickered coins.
Good luck. You are a very astute buyer if you get the discounts you want when the market is normal and dealers are "flush."
Because when I sell them I also get paid a premium for them.
That's the short, cynical answer. My real answer is that the best coins have always sold for a premium. Why is that so hard to understand? CAC isn't perfect, but on average, coins with CAC stickers tend to be more desirable.
That!
My YouTube Channel
Did you forget that JA was instrumental in running those "poor grading services" for quite a few years? So if things were flipped around and JA got the coins first from the public for grading (rather than the TPG's), would he do any better than they have?....especially since you say so many doctored coins only become visible weeks/months after they have left the grading rooms. Can CAC ferret out those coins better than anyone else before they "turn." The initial slabber doesn't have the luxury of time.
Why buy CAC? Primarily, it makes perfect sense where there are wide spreads between grades....such as MS64 to MS65 seated dollar where that could mean a 5X to 10X price difference. Hence, a weak 65 coin will be priced much differently than a solid or pq 65. Not everyone can tell the difference or will agree with you when it comes time to sell....unless you have that sticker.
it's a moot issue if I can't buy the coin right and for other major areas of numismatics I do like currency, mods, world.
I have bid on CAC coins aggressively I felt they were high end for the grade or had remarkable eye appeal.