This read my help you:
Here is a reality check about grading companies vs. what people coming into the hobby just assume about them b/c they see so many slabbed coins being sold:
Give a man a fish, feed him for a day. Teach a man to fish, feed him for life. Here is some beginners fishing tackle. Its worth your time to read.
Following is info concerning the actual nature of grading companies that can help people make better educated decisions.&
Thinking of Slabbing? Make sure you understand the Facts...or You Could Lose Money.
Popular mistaken mindset: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 or make a lot of money, but they learn a hard lesson quickly.
Professional predicting not possible: 2. Watch online videos of even experienced dealers getting back packages 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's not really a
fault) is in a widespread
mistaken perception people get from being exposed to all the slabs being sold nowadays:
a. Coin grading companies are a business. Businesses exist to make a profit.
The companies use a system where allegedly three, but in reality its normally two, graders look at each coin and give an opinion. The company videos showing the process make you believe this is a relaxed and 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 no link). Uh uh.
b. 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 (extreme and a bad day for graders), 63, 64, 65, 66 (extreme and a great day for you!). This is b/c the process is all subjective:
No scientific/verifiable standards or methods are used. This subjectivity makes for greater company profits since people resubmit the same coin trying to get a higher (better price when selling) grade. In the 90s the companies, at great expense, created better (their own words) scientific methods not relying upon human opinion. No doubt the large profit from the re-slabbing game fell. The companies abandoned the science and went back to their less accurate systems.
But..this is all hearsay without proof. So...
http://goccf.com/t/346174#2967242Here is another good read from s CCF member who was also there at the start of the grading companies:
http://goccf.com/t/130186Error on errors:3. People also seem to think grading companies will examine a coin to see if they can find an error and then slab it as such. But again, they ONLY GRADE coins. The companies will NOT try to find and ID an error for you. You must FIRST ID the error yourself, CHECK to see if the company you want to use recognizes that specific error, PAY them to verify the error on the label, and then you may or may not actually get what you pay for! The companies have a bad reputation for attributing errors incorrectly.
Link to and read (download if you want it) the pdf link in my signature as an eye opening example. Sadly, the verifiable data presented from the PCGS website shows trusting people have spent thousands of dollars on many slabbed coins that are not what the companies claims/slabbed the coins to be.
Cost concerns:4. B/c people do not understand the businesses, so very many people end up with spending far more money to slab a coin than the coin is worth. The companies profit greatly with membership fees, submission fees, insurance fees, shipping fees and extra (chosen) fees. ANACs does not have all these fees though.
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!"
Posted 02/27/2022 07:42 am
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