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Who Makes The Slabs (And Where)

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Pillar of the Community

Australia
852 Posts
 Posted 07/19/2014  11:00 pm Show Profile   Bookmark this topic Add nealeffendi to your friends list Get a Link to this Message Number of Subscribers
In another section of CCF there are posters who claim that a certain cut rate TPG (APCGS) uses slabs that are equal in quality to PCGS slabs.
Another poster raised the fact that APCGS uses cheap Chinese generic slabs (available on Alibaba), the counter point was that PCGS may also be using cheap Chinese slabs.
So does anyone know for certain if all PCGS slabs are made in the USA? Please no presumptions, just the facts (ideally with good info like the name or state of the supplier).
On a side note who supplies ANACS and NGC with their slabs?
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oih82w8's Avatar
United States
7840 Posts
 Posted 07/19/2014  11:04 pm  Show Profile   Bookmark this reply Add oih82w8 to your friends list Get a Link to this Reply
The Top III Third Party Graders (PCGS, NGC and ANACS) will not disclose the source of their products.
Pillar of the Community
Australia
852 Posts
 Posted 07/19/2014  11:40 pm  Show Profile   Bookmark this reply Add nealeffendi to your friends list Get a Link to this Reply
But nobody has seen/delivered cartons of unused slabs (or shipping labels for same)going to the slabbing facilities? Has to be hundreds of assorted employees (mould operators, shipping clerks, truck drivers and couriers) who all have friends and relatives. It isn't the Manhattan Project and they are not subject to signing The Official Secrets Act so zero word out there?
Surely when they have same day turnaround on slabbing at coin shows there would be something to give the game away?
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mgillette's Avatar
United States
374 Posts
 Posted 07/20/2014  12:34 am  Show Profile   Bookmark this reply Add mgillette to your friends list Get a Link to this Reply
Handling trade secrets is a very serious matter, not only ethically, but also in terms of being a major liability. How many people do you think would care enough to risk their jobs and potentially much more to let the word get out? My guess is most people have no idea and most people don't care but those that do know either have a strong sense of ethical responsibility or at least greatly value their own livelihood.
Pillar of the Community
Australia
852 Posts
 Posted 07/20/2014  01:46 am  Show Profile   Bookmark this reply Add nealeffendi to your friends list Get a Link to this Reply
mgillette, there are thousands of loose lips and whistleblowers out there who leak serious information and this trade secret isn't on par with say the 11 secret herbs and spices or the Coca Cola recipe (I know what the 11 are and the second is stored in Atlanta). I work in security and most people talk about their job to work colleagues, spouses and friends. Providing security for trade shows I see lots of shipping labels, I'm sure the public can see them as well. As I'm not in America I cannot go to your shows to look for things like that.
Would it be unethical for an employee to say that they are proudly made in the USA or for someone to inform the public that they are no better than the cheap rubbish made in the same Chinese sweatshop?
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SsuperDdave's Avatar
United States
23522 Posts
 Posted 07/21/2014  4:51 pm  Show Profile   Bookmark this reply Add SsuperDdave to your friends list Get a Link to this Reply
It would be unethical for an employee to divulge a trade secret. And if I were a TPG, I'd have those slabs manufacturered with an undisclosed trace ingredient which would positively confirm its' originality.

Which would make it a trade secret, and I'd pass out the pitchforks to go after the one who disclosed that ingredient.
Pillar of the Community
Australia
852 Posts
 Posted 07/21/2014  6:15 pm  Show Profile   Bookmark this reply Add nealeffendi to your friends list Get a Link to this Reply
Ssuperdave, there is no such thing as a trace ingredient in plastic that can perform such a function. It might be undisclosed, but an advanced lab analysis will detect a tracer. Now small back alley counterfeiters won't have the analytical skills but a larger outfit might.
Even the big counterfeiters are unlikely to be able to reverse engineer the exact manufacturing techniques for the compounds or especially the DuPont Izon security label.
I'm not asking for the formula for the slabs, just trying to determine where they are made. The non disclosure of country of origin or who manufacture them is allowing others to claim they are made in China in the same factories as the counterfeit slabs.
The slabs have to be sent to the TPGs in boxes, the boxes need to have shipping details (and usually manufacturing details). Nobody has ever seen those boxes?
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Conder101's Avatar
United States
17884 Posts
 Posted 07/22/2014  4:04 pm  Show Profile   Bookmark this reply Add Conder101 to your friends list Get a Link to this Reply

Quote:
Nobody has ever seen those boxes?

Maybe they have but unless there are collectors who have staked out the TPG's and gone rummaging through their trash to find these labels and then reported what they have found we'll not know for sure. Why don't you go rummage through their trash? And of course this also assumes they don't have the shells shipped elsewhere and then transported to the TPG in unmarked packages. That's what I would do if I wanted to hide the source of my shells.
Edited by Conder101
07/22/2014 4:05 pm
Pillar of the Community
Australia
852 Posts
 Posted 07/22/2014  6:06 pm  Show Profile   Bookmark this reply Add nealeffendi to your friends list Get a Link to this Reply
Condor,I'm in Australia otherwise I would do just that (snoop in the dumpster). I did work 3 years in recycling and saw lots of sensitive documents (especially government department files on individual members of the public, bet you thought your details were confidential), and empty boxes with shipping details were very common; saw a number with Royal Australian Mint paperwork attached. Is PCGS more protective of paperwork than a mint?
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denco7's Avatar
United States
2543 Posts
 Posted 07/22/2014  8:17 pm  Show Profile   Bookmark this reply Add denco7 to your friends list Get a Link to this Reply
This is what I don't get .....

I too worked for a security company. We did security at several factories in the area. The employees walked through a metal detector and we searched backpacks and such after shifts. In addition, we held employee informational meetings, bolstering employee loyalty to the company, spiced with detils of what will happen should you get caught stealing anything. During our tenure there, employee theft was reduced to practically zero. I would like to think that it was due mostly too heightened loyalty to the company and not the fear factor. And my company was proud as was I for my small part.

What I don't get is .....if in fact you were a former security professional, what is, now, this preoccupation in getting a TPG employee to turn on their company. And reveal company secrets.

Bottom line is, I have many PCGS slabs and NGC slabs that are 20+ years old. The coins look as good as when they were slabbed. Cheap slabs equal toned and corroded coins. Why on earth would a multi-million dollar company risk losing everything to save a few cents on cheap slabs. All the money and work you have done for years convincing people that slabbed coin were infinitely more valuable and desirable could come crashing down with one black and brown 1995W MS70 ASE due to a cheap slab.

Does anyone really think that they are risking their business on cheap slabs, no matter where they may be made ?
Pillar of the Community
Australia
852 Posts
 Posted 07/22/2014  10:06 pm  Show Profile   Bookmark this reply Add nealeffendi to your friends list Get a Link to this Reply
Denco, I currently work security here in Australia. It isn't a preoccupation to get a TPG employee to turn on his employer but a preoccupation to get at the truth of where the slabs are made. I don't need the resin formula or the manufacturing techniques used or costings.
Odds are more non TPG employees know something about the source. Delivery drivers, mould makers, general logistics and waste disposal are all employees who don't work for PCGS and anybody they talk to is not bound by either employment contract nor employee loyalty.
The places where you provided security must be exceptional (or are the exception). I get lots of info from people who have contacts in banks, security companies and mints (both here and in America). Most places leak information like crazy and often it is officially permitted. For example if you ask the Royal Aust Mint where they get their blanks from they will tell you Korea. Is it too hard for PCGS to tell its customers where it sources its slabs from?
As for any company risking their reputation by cutting costs.... look at how the once great companies like GM have lost customers by saving a few cents on parts (messing with down suppliers does this) only to have recalls years later for defective parts. An executive today will often risk the failure of his employer in 20+ years as staff typically turn over every 5 years and executive bonuses are based on meeting quarterly targets and cutting costs today.
They use up to 2 million slabs/year and the savings could be over a dollar/slab which would boost the gross profit margin of Collectors Universe even higher (currently 62.69%. For all we know the recent improvement in margins over the past few quarters is by cutting costs and the short term bottom line is the main metric used by stock investors.
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BStrauss3's Avatar
United States
4594 Posts
 Posted 07/22/2014  11:20 pm  Show Profile   Bookmark this reply Add BStrauss3 to your friends list Get a Link to this Reply
Tooling is incredibly expensive. One Kickstarter project spent almost $100K on the molds. Given that they are customized for PCGS and because of trade secret concerns, it's likely that PCGS owns them and contracts out the actual injection molding to a specialty house.

You can find out more (from 2004) on page 19 of http://www.sec.gov/Archives/edgar/v...04047931.pdf they had just one supplier.
By 2013, page 18, http://www.sec.gov/Archives/edgar/v...97-13-016267 they have two suppliers.

-----Burton
50+ year / Life / Emeritus ANA member (joined 12/1/1973)
Life member: Numismatics International, CONECA
Member: TNA, FtWCC, NETCC, EveryCountry (online) coin club
Owned by three cats and a wife of 40+ years (joined 1983)

Author: 3rd Edition of the Sample Slabs book, https://www.sampleslabs.info/
Pillar of the Community
Australia
852 Posts
 Posted 07/23/2014  12:22 am  Show Profile   Bookmark this reply Add nealeffendi to your friends list Get a Link to this Reply
Thanks for posting links to the Annual Reports (which unlike promo advertising are subject to strict rules about misleading disclosures). They didn't say where the slabs are made but under ITEM 1A RISK FACTORS on pages 14 and 16 they do list risk factors with the manufacturing of the slabs (2 suppliers) and the risk factors of expanding the grading service overeas (specifically discussing currency risks). Because they don't discuss currency risks with the supply of slabs it means that the contracts are in USD and there is no hint that the suppliers are subject to currency fluctuation problems. Ergo the suppliers are in the US.
And the report does disclose that PCGS owns the dies for making the slabs.
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LincolnGuy's Avatar
917 Posts
 Posted 07/23/2014  01:42 am  Show Profile   Bookmark this reply Add LincolnGuy to your friends list Get a Link to this Reply

Quote:
Is it too hard for PCGS to tell its customers where it sources its slabs from?


Why should they? The only people this information would be useful to is counterfeiters. I can't think of one reason this would be useful to anyone else.
Pillar of the Community
Australia
852 Posts
 Posted 07/23/2014  05:55 am  Show Profile   Bookmark this reply Add nealeffendi to your friends list Get a Link to this Reply
Lincolnguy. It is of little benefit to counterfeiters to know where the slabs are made. if they really needed to know then stacking out the PCGS facility would give them that information.
It is of use to customers to know that their slabs are made in a good facility and not subcontracted out to some dodgy outfit.
It is no different to any consumer who buys a brand name product and checking that it is made in countries like Switzerland, Germany, Sweden or the US that have a reputation for quality control and not China or Bangladesh.
Other numi product makers put the country of origin on their products. Has Saflips lost market share because they let their customers know that their product is made in Ohio and even give their address?
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Conder101's Avatar
United States
17884 Posts
 Posted 07/23/2014  6:23 pm  Show Profile   Bookmark this reply Add Conder101 to your friends list Get a Link to this Reply

Quote:
Is PCGS more protective of paperwork than a mint?

Quite probably. Which do you think is easier to sue for damages for a breach in privacy, a private company or a government agency?
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