Salzberg Advises: Research PCGS Populations And Prices

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First, not all the coins are strictly conditional rarities only. I think most folks would agree that a 1912-S Liberty nickel is a key date, even if it is charted at the top. A 1945-S Walking Liberty half is certainly at the top end of the grade scale at 67, but I'm not sure I'd call that "only" a conditional" rarity.

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Yes, he is using the high end of the scale as comparison on all the coins, but that would be the LEAST likely grades for such huge increases in such a short time.

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Second, you said that his benchmark was 5 years. Actually, if you READ the charts (forgetting months, just years)there was: 1-8 Year, 2-5 Year, 3-3 Year, and 3-2 Year comparisons.

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but I think your zeal against TPG's in general biased your opinion.

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The majority of coins I purchase are in a price range where I'm simply an idiot if I don't purchase them in NGC or PCGS holders.

Especially considering that the prices for raw and TPG'd coins in those price ranges usually have little if any difference. So I'm usually not paying any more for the NGC or PCGS than I would for the same quality coin without their opinion.

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In the last three years, particularly, I've been FORCED to buy more NGC coins than I have in the past.

I do keep track. In 2012 my purchases were 67% PCGS, 33% NGC, in 2013 my purchases were 58% PCGS, 42% NGC, in 2014 my purchases were 51% PCGS and 49% NGC, in 2015 my purchases were 47% PCGS and 53% NGC, and last year my purchases were 31% PCGS and 69% NGC.

So for myself, I've really turned more toward NGC for the simple reason that I DO buy the coin and not the holder. Most of the coins on my want list I have to look at dozens or even hundred of times for the same date and mint mark before I find one that meets my needs in eye appeal, grade, and price.

ALL OF the coins I've sold in the last two years have been PCGS. I haven't sold a single NGC, because I didn't have any I wanted to sell. In looking at some of the PCGS I bought recently, I see that I might have jumped too quickly on "filling the hole".

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I have only recently decided to start a set with certified coins

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Q/ Am I to understand that, when each coin is graded, someone goes through the photographic records of the tens of coins that have been graded at that level to be certain that they have never seen this particular coin before? At other grades, too?

Q/ Or, are they just counting the certificates they have issued?

If the latter, it seems to me unsurprising that population counts have increased, and at an increasing rate.

Why? Lots of people have lots of coins and, as the craze has caught on, are grading & slabbing more & more of their coins.

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PCGS is the world's leading grading service for many reasons, most importantly because we operate with a level of transparency and objectivity that is unmatched in the industry. PCGS has always been and will continue to be the most effective Consumer Protection advocate in the coin market.

PCGS is also a tough competitor. We set the standard for third party grading 30 years ago. Every other grading service has attempted to copy that standard and has been playing a game of catch up for all these years. Mark Salzberg, Chairman of NGC, recently published an open letter wherein he attempted to smear PCGS and strike fear in the hearts of collectors.

In regards to increasing populations, first of all we confess to being the most popular grading service. We process many more Vintage coins than NGC. Secondly, populations rarely go down. There are always hidden collections, accumulations or hoards that come out. As Mr. Salzberg probably knows but failed to mention, there have been several original rolls of 1912-S 5c that have come to the market in the past few years. In 2016 PCGS handled at least 2 fresh rolls of gem 1912-S 5c. These rolls were handled by some of the most knowledgeable dealers in the business. We are proud of the fact that these individuals, who have great insight in to the coin market, chose PCGS to grade their coins.

Another phenomena contributing to increased PCGS populations is our crossover service. Many collectors and dealers who own coins graded by other grading services attempt to cross their coins into PCGS holders. As a matter of fact many dealers deliberately buy NGC coins and cross them to PCGS at a lower grade, subsequently selling them at a profit. Simply look at many of the coins sold in the recent Newman and Partrick auctions by Heritage and you can see for yourself how many have already been crossed over.

PCGS graders have over 250 years of experience. All of our grading is done through a sophisticated grading system which reflects this knowledge and was developed over 30 years of operational experience. The market's confidence in PCGS graded coins is greater than ever. As we recently reported all of the top 20 coins sold in auction during 2016 were graded by PCGS. As we have also reported, over 80% of all CAC coins sold in recent auctions were PCGS coins. CAC is a respected independent organization with no ties to PCGS yet based on public information 4 out of 5 coins they approve have been graded by PCGS.

We can assure every collector and dealer around the world that PCGS has always been, and always will be, committed to providing the most accurate and impartial grading in the market.

Sincerely,

Don Willis