On a regrade that grades lower, how does PCGS determine what it will pay for the coin?
TopographicOceans
Posts: 6,535 ✭✭✭✭
If you submit a coin using the regrade level and the coin grades lower than it was currently submitted as, how does PCGS determine the amount they will pay?
What if it comes back as a Genuine (no grade)? What will they pay?
What if it comes back as a Genuine (no grade)? What will they pay?
0
Comments
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
In my experience the grading companies usually don't downgrade coins already in their holders, even if it's overgraded. So it's not really an issue :-). But somehow when the coin is broke out of the slab and submitted it gets a lower grade at that point.
A good example of this is a recent 1796 Bust dollar that was returned in the same grade holder that appears not to be worthy of it.
I have had the following 2 experiences:
- Had a 1969 PR69DCAM 25C that looked nice when I won it from auction, put it in a SDB, took it out about 2 years later, and the entire surface has been eaten by DIP (or MS70, who knows) residue. I looked at the coin under a glass and knew the coin was caput. Sent it to them under review, silence for 2+ months, then a call/e-mail. They bought it back for what I had paid for it (not market rate), but that was fine, got my money back. It was beyond salvage, it would n0-grade on a regrade.
- Had an 1869 MS65RB 2C in a rattler I sent in for regrading...silence for 7 weeks, then a call "we damaged your coin during the crackout process and it's no longer gradeable..." BUMMER, it was a choice coin I bought for about 50% of the market value. I produced my auction invoice and they paid me what I paid for the coin.
In each instance they were very professional decisive/quick about the resolution, so kudos to them.
In my experience the grading companies usually don't downgrade coins already in their holders, even if it's overgraded. So it's not really an issue :-). But somehow when the coin is broke out of the slab and submitted it gets a lower grade at that point.
This is my experience too, and I've done hundreds of regrades in the last two years.
I've also submitted coins for grade review and had more than a few payouts from PCGS.
So to your question: if PCGS downgrades a coin, regardless of service, they decide the coin's wholesale value. It will obviously be lower than their price guide number. If you disagree you must show substantive evidence of its higher value. PCGS will hear you out but its unlikely (though not impossible) for them to change their minds.
You can read about the PCGS grade guarantee here.
Lance.
grades ie. $1000 ? Not everybody uses the same price guide, as a matter of fact I've never seen
a dealer use the PCGS guide. 90% of the time Grey or Blue sheet are used.
What happens if the grade is lower and there is a significant price difference between the two
grades ie. $1000 ? Not everybody uses the same price guide, as a matter of fact I've never seen
a dealer use the PCGS guide. 90% of the time Grey or Blue sheet are used.
I'll speculate that the CCE dealer posted bids may be used for buybacks, which can only be viewed by dealer subscribers.
Directly from the site page regarding the PCGS grade and authenticity guarantee:
"IT IS UNDERSTOOD THAT PCGS WILL BE THE SOLE DETERMINER OF THE CURRENT MARKET VALUE OF THE COIN AND THAT CURRENT MARKET VALUE IS DEFINED AS DEALER REPLACEMENT VALUE, I.E. THE PRICE A DEALER WOULD MOST LIKELY HAVE TO PAY TO REPLACE THE COIN."
"Everything is on its way to somewhere. Everything." - George Malley, Phenomenon
http://www.american-legacy-coins.com
In my experience the grading companies usually don't downgrade coins already in their holders, even if it's overgraded. So it's not really an issue :-). But somehow when the coin is broke out of the slab and submitted it gets a lower grade at that point.
A good example of this is a recent 1796 Bust dollar that was returned in the same grade holder that appears not to be worthy of it.
RE: 1796 Bust dollar
Isn't the edge lettering the cause of the rim issues? aka - This was not rim damage but rather as it left the mint? I realize the value of the coin should be reduced based upon the appearance but do not understand the idea that this coin should be bagged. Please enlighten me.
I thought the offers were very fair.