Can Someone Explain This

@smokeriderdon:

I do not agree with many of the philosophies of a number of the current TPGs. Error coinage included. However, in the subject of the TPGs details/non-grade of certain "damaged" (error) coins, biokemist6's statement is right on.

Now, we're talking about a specific niche of market grading here with regards to the TPGs. The niche the TPGs are trying to fill is the absolute sight-unseen investors. Now, I know that if you go to PCGS' website and click on "About", you'll come to the "official" PCGS Story(http://www.pcgs.com/thepcgsstory.html).

It is filled with how PCGS is for the collector and how they are looking after the collector's best interest and battling fraudulent and misleading grading...a story we hear from most of today's TPGs. But, this contrasts to the story that PCGS was created for this "sight unseen" niche. It is my belief that we could apply this to many of today's TPGs.

David Hall wrote about this in his write-up entitled The Story of the Origin of PCGS (http://www.pcgs.com/News/The-Story-...igin-Of-Pcgs). The investor is not going to be interested in minor error coins. The investor is going to be interested in major errors and coins that will turn over a gain. Catering to the error collecting community is not beneficial for the TPGs' bottom line of creating a true sight-unseen trading niche.

There are a number of sight-unseen trading venues today, with Teletrade being one of the larger. Now, the dealers that utilize this venue want to be assured that their bid for a specific grade is going to fall within certain guidelines without having to worry about "errors", minor "varieties" and "oddities", or "damage".

Of course, there are always available solutions to curtail this problem, but then that would also include a larger investment in both time and money on the part of the TPGs to accomplish this. When a TPG is a publicly traded corporation, there are certain laws and regulations they must follow. To put it in a nutshell, a publicly traded corporation is required to act in the best interest of the stock holders/investors.

On the bottom line, this amounts to making a profit...and as much as you can possibly make! Now, when the potential niche that wants to be catered to is relatively small (in this case the error collectors), the corporation must determine the most cost effective route to take.

It is clear by their very actions that the TPGs currently believe it is most cost effective to simply not grade (or at least not numerically grade, which could adversely affect the sight-unseen market) the errors in question. Now, this should not really affect the value of the coin between two collectors dealing with each other in trade. As well, this is not to say that they may never cater to such niches in the future either.

If you are active in such a niche (unless just starting out), then you would have a pretty good understanding already with regards to the substance of the error as well as possible value. Besides, you collect what you like. We are not referring to "investing" here, we're talking about pure unadulterated collecting as a hobby and for enjoyment.

When you decide to sell, it will likely be to another informed collector in your niche. Realistically, I do not personally see that TPGs are of any real value in cases like this. Yes, they have authenticated the coin and have validated that the coin truly has a variety or error. But, what matter is it of their grade opinion when you are already a knowledgeable hobbyist?

Anyway, I ramble too much.

Just remember to collect what you like!

NP, I see what you are saying. However, I would say that typing in mint error, planchet lamination vs. details: lamination is going to have any difference in cost. I think you are closer to the truth with saying the TPGs are catering to bigger dollar investors interested only in the highest grade for their investment dollar. And those investors mostly are not collectors and likely will see the coin once, if that.

Which goes towards my disdain for the standing PCGS and NGC hold.

I would assume that the auction house figures there will not be much activity with this one, thus the high start for this coin. At the time of this writing, there are little more than two days left with only one watcher. If a few more (serious) interested watchers get involved, I could see it going up to $500 ($550 with juice), but only if there are a few more seriously interested parties.

Otherwise, I doubt the lone watcher will bite on it at that start price.

NP it could be something like that which I honestly couldnt argue with. If thats what they need to do to protect themselves I certainly understand it. Just seems like there should be some middle ground where they could cover themselves by clearly labeling everything and still not lump it in with the same group as obviously doctored coins

The denticles are bending into the field. Only way for this to happen would be lamination or something wrong with the planchet. Probably cleaned and retoned or something, color is way off. Or maybe the lamination error sustained a bump or alteration, causing PMD.