TPG Discussion

I posted this in the main forum because it's not on a specific topic about a specific third party grader. I'd like to open up a discussion about the industry in general and its affect on our hobby. I think we can all agree they've had a enormous affect on the numismatic industry - in good ways as well as bad. They're very controversial, as many collectors swear by them and others loath them. I personally feel that (overall) their presence has been a net-positive for the hobby. And this of course if factoring the good with the bad.

I guess I mainly like them because I rely on them so much. I regularly buy coins via the internet, especially on ebay and there is only so much you can tell from a picture. Cleaning and other problems can be difficult or impossible to detect from a picture. Many (perhaps most) have difficulty spotting it in person unless it's obvious. Setting egos aside, I also think most collectors can't even consistently tell the difference between an AU58 and an MS63. It does take a special eye to find that tiny little rub that most people will miss. Are TPG's perfect? Heck no! But I do think having multiple, very experienced eyes is better than having ONE eye (the seller) make that call. That one seller may or may not have enough experience to grade that particular coin, he may or may not have integrity, he may or may not be biased since he owns the coin.. and of course one eye is much more likely to miss a small scratch or other problems than multiple eyes.

I would break down my Pos and Neg list as follows.

Positives:
- Peace of mind when buying online or from sellers you don't know.
- Unbiased "third party" opinions from a panel of presumed experts.
- Generates interest in numismatics.

Negatives:
- Can drive up the price of a coin without merit. An EF coin is still an EF coin, but in a PCGS slab you'll pay a premium.
- Excessive market manipulation in some cases. MS70 slabbed coins sell for multiples what a raw example sells for; therefore, dealers send mass numbers of Lib Walker $'s in to be slabbed. The TPGs then make money.
- They've created a new breed of scammers. We've all seen "Graded MS65 by Achme Coin Grading Services!" And of course the counterfeit slabs starting to come out of China.

There are other positives and negatives I could have mentioned, but I wanted to keep it to the basics at the point. Feel free to add your own to either list. Also, please give your opinion as to whether TPG's have been a net positive or negative for our hobby.