Why Are Fantasy Coins Being Graded By The Big TPGs?

I cannot see any reason why PCGS won't grade ANY non damaged coin.

Usual standards apply: amount of wear, and the amount of nicks and scratches.
The grading number assignments when Sheldon first devised the scale, relate to comparative value, based on the amount of wear.
The grading numbers these days are purely nominal, especially when the bulk of an issue is condition MS60 of better, and there is not much difference in value between low and high MS grades.
NCLT and fantasy coins are examples.

I disagree.
If that was the case then Non damaged or Mint state counterfeits would be graded and slabbed.
NCLT and Fantasy coins are two completely different things.
Anyone can produce Fantasy coins But only a Government approved Mint can produce NCLT coins which usually have a redeemable face value.
The face value on Fantasy coins is Non existent.

This thread points to the complexity of numismatics in the area of non-standard issues.

Grading and Authentication are two entirely different issues.

The TPGs are devolving into Graders only. Authentication gets very little attention. Recently they have been doing rather poorly at the authentication part.

I support the view that all numismatic materials can be classified according to what they actually are. It can be done scientifically. Fantasy issues are no different than any coin made by a government. Even counterfeit coins can be encapsulated - provided they are correctly identified as to what they really are. All that is needed is expertise and time.

NGC is doing the same as well.
http://www.ebay.ca/itm/1835-1908-Ch...AOSwjDZYdVVO

IMO, many coin collectors (especially new collectors) trust the grading organizations and believe their slabbed coin is authentic and valuable.

The bidding price for that fantasy coin has jumped over $100USD. I am sure some of those bidders don't realize what "fantasy coin" mean and they think they are bidding an authentic coin made in 1908, it is totally misleading.

As an collector who really enjoys Exonumia, I'm drawn to the "Fantasy" pieces. They can be very scarce and produced in small numbers. For example I have a budding collection of 1936/1937 Edward VIII pieces which are "new" but historically very interesting. I don't think there's anything misleading about the coins, especially when the TPG states they are fantasies on the slab. They usually also provide a reference to literature, I've sent many fantasy pieces for grading, only to be returned because the item wasn't in their reference material. If someone buys an item there is an expectation that they would know what they're buying, especially when the TPG states "Fantasy" we can't protect people from their own lack of knowledge in this regard.

As stated above, authenticity is being confused here, these coins are not counterfeit, they're fantasy products. There was never a 1936 Silver Crown issued under Edward the VIII to Australia, therefore my example of that coin is not a fake. Also the question of value, just because it's a fantasy doesn't mean its not in demand (or valuable).The fact NGC have slabbed it shows the coin is authentic in their view, i.e. its not a fake of a fantasy coin.

The points raised by swamperbob are key here and are very well stated!

And a very valid point Neal

With everyone moaning and whining about the flood of counterfeits coming out of China and elsewhere, Don't you think it would be Prudent NOT to legitimise these Fantasy issues which in reality walk a knifes edge of being counterfeits themselves.
Sure IF you like these sort of things then Fine collect them But for the TPG's to legitimise these by grading and slabbing them is Lunacy and cannot bode well for the hobby in the future.

I'm only somewhat familiar with fantasies in the case of China. Kann describes many. In my mind, those fantasy coins of interest would be coins minted by employees or mint directors having no authority to do so from the central government. Sort of like genuine silver pieces that depict a princess or perhaps symbols of good luck but not an actual money coin. Chinese fantasy coins can be old and original and legitimate for collectors. Modern concoctions and oddball or whimsical present day pieces can sort of cloud the issue regarding fantasy coins. It's almost as if we need some better words to distinguish the different kinds of coins being cranked out present day compared to many of those made out of good metal and of good design but were made because the mint had little or no control by the emperor.