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Third Party Grading Company Article

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Pillar of the Community
ageka's Avatar
Belgium
2078 Posts
 Posted 08/17/2006  08:01 am  Show Profile   Bookmark this reply Add ageka to your friends list Get a Link to this Reply
There is another disadvantage of the numerical system which is not obvious to an outsider
That is clustering of grades around certain numbers like eg
MS63-MS64 in Double Eagles
They try to make people believe MS64 is a fantastic investment grade

Somebody reported he bought 250 pieces at MS64 and when gold was up
50% he sold and got a gain like of only 10%
The rest went into commission money and the fact that premium does not follow price of melt
When gold went up 50% some premiums went down by more then half
like from 60% to 25%
Pillar of the Community
longnine009's Avatar
United States
1247 Posts
 Posted 08/17/2006  6:32 pm  Show Profile   Bookmark this reply Add longnine009 to your friends list Get a Link to this Reply
There are problems with both numerical and adjective grading. Adjectives are spin control and numerical offers no break down of what your paying for.

What is the purpose of grading in the first place? To describe a coin to someone who is unable to see the coin? I would submit that not only have slabs exhausted themselves, so too has grading. Many if not most can see the coin now from images--the technology of which is only going to get better. If the images are honest, IMO, you can get a far better idea of what your getting into with a decent image than a string of "monster" "atomic" "splashes of earth tones--send money." Or from a engima number.

I really, for the life of me, can't understand what it is that collectors see in slabs? You have to grade the coin yourself anyway if your going to follow the advice of "Buy the coin and not the slab." All they are really doing that is useful is authentication. They are simply making people buy BS to get something that is actually useful.

http://www.producepatch.com/cat1.jpg









Edited by longnine009
08/17/2006 6:37 pm
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