Here is more info concerning the nature of the grading companies to help people make better educated decisions.
Note this is NOT a slam against the companies...just some reality.Thinking of Slabbing? Make sure you understand the facts...or you will likely lose money.
"Education is the key to collector success"
1. The grading companies are not a way that the majority of people, even those with a great deal of experience who know what they are doing, are going to be able to use in order to make huge personal profits. Many people start using grading companies thinking they will find a way to finance their hobby, but they learn a hard lesson quickly.
2. Watch some videos on youtube of experienced dealers getting pieces back from the grading companies. Note even people who live, eat, breath, and deal coins for a living cannot
accurately predict what grade the companies will give.
And...the "fault" (it not really a fault
, but a misconception) is in the widespread mistaken perception
people get from being exposed to all the slabs being sold nowadays.
Coin grading companies are a business out to make a profit - this is why they exist. They use a system where (allegedly) three graders look at each coin and give an opinion. The company videos showing the process make you believe this is a relaxed paced process of studying each coin. In fact one PCGS
video shows a number of guys sitting around a table discussing what they think a specific coin should be graded as (on youtube somewhere - sorry I don't have the link). Uh uh...not reality. The amount of coins graded in one day does not allow this kind of comfortable debate.
If you take a PCGS
graded coin slabbed as MS64, break it out, and resubmit it to PCGS
, you are never guaranteed the same grade again.
The slabbed coin might come back MS62 (graders having a bad day), 63, 64, 65, 66 (great day for you!). The extremes mentioned are uncommon, but do happen.
The grading is imprecise b/c the process is all subjective: No scientific/verifiable standards or methods are used.
Personally having talked with former graders (granted - its been awhile), the process is very rushed since they told me graders are paid by how many coins they can get through in a day. However, a member on this forum informed me not long ago it is a salary based operation now.
But..this is all hearsay without proof. So...http://goccf.com/t/346174#2967242
Here is another good read from someone there at the start of the grading companies:
[URL="http://goccf.com/t/130186]Hobby negative impacts from slabbing companies[/url]
Also link to and read (download if you want it) the pdf link in my signature. The verifiable data presented shows trusting people have spent thousands of dollars on many slabbed coins that are not what the companies claims/slabbed the coins to be.Please note:You don't have to throw in the towel over these companies
...but education about the reality of them will put you on the right pathway to dealing with them in a legit way without losing money in the process.
And... if you just like to collect slabbed coins for what they are, which makes losing/making money from slabs irrelevant, then of course enjoy them! Its a hobby...have fun!
The slabbed Half dollar No FG farce: Download No-FG half vs. Grading Company Claims report here:https://tinyurl.com/yalrstjz
or higher resolution version: https://tinyurl.com/y7rksxu8
- How much squash could a Sasquatch squash if a Sasquatch would squash squash?