Change in value for the same coin that crosses over
Gazes
Posts: 2,315 ✭✭✭✭✭
I have seen coins that crossed over in the exact same grade from NGC to PCGS and trade for a lot more money. My initial thought when I saw this occurance was why pay more money for the exact same coin simply in a different piece of plastic? Over time, I have been one of those people who bought a coin for a significant amount more when it crossed to a PCGS slab. I do think it is overly simplistic to simply say someone is paying extra "just" for the plastic or that it is a complete waste of money.
The best anaology I could think of is the high school football recruit. Lets say he is a 2 star or 3 star. All the sudden Alabama offers him a scholarship. Next thing you know, other SEC schools are interested as well as other top programs. The same kid, same ability but all the sudden his value has gone up because he was "ratified" by the top program. There is an extra value having a coin in a PCGS holder---its not just a different piece of plastic but that PCGS graders have viewed the coin and graded it under their name. I know my first instinct was to pass on a coin whose price seemed to simply be higher due to a change in its holder but over time I have seen there is a value (that value is not without its limits) to the coin that has crossed over from NGC to PCGS in the same grade.
Comments
I can see where you would look at it differently, because it has been judged by PCGS which you might consider more strict to still be of the same grade-and perhaps many other coins would usually cross and downgrade.
The original purpose of slabbing was authentication. But one of the driving forces for the rise of TPGs was the desire to facilitate a sight-unseen market. I buy all coins online as though they are sight unseen, no matter how good the pictures purport to be. For certain series, PCGS is far more "conservative" than NGC which pushes my bids up for the "same coin" in a PCGS holder.
A few examples? Sure, why not.
At the risk of derailing the thread with a CAC rant, this is also the only reason I care about CAC. It is easier to buy and sell sight unseen with the CAC. So, identical coin, pre- and post-CACing will carry a much higher price tag. It's not that the coin got better. It's not even the coin market as a whole that dictates it. It is the sight unseen part of the market that really pushes these things.
In my ever humble opinion.
PCGS is a brand and successful marketing creates brand value. Ditto CAC. A brand usually has a value differentiation compared to its competitors. The market has recognized this brand, indicated by higher prices for the brand.
The above I'm sure is "duh" to you, but I'm saying it shouldn't be surprising.
"Got a flaming heart, can't get my fill"
So who is getting the better deal? you buying straight PCGS graded, or the guy with the eye who plucked it out of the other holder.
Best place to buy !
Bronze Associate member
Everyone has the same opportunity to view coins in other holders (or raw) and try their luck with PCGS. Obviously the more skilled grader will do far better. However, at the end of the day we all have that same opportunity.
Because you can sell it for more.
Buy low (NGC), sell high (PCGS)... Oh yeah.. there is a 'reholder' in between...
Cheers, RickO