Grading Of Coins Is An Unregulated Practice

BY THE WAY

MERRY CHRISTMAS TO ALL !





This law article kinda sounds like it encases some sellers on ebay.


Seems anyone that believes they were duped by some of these TPGs should go to one of the government agencies and report it. THe more that report it the quicker it will get more attention.

When those slabbing companies label ms70s by the thousands do they fall under the law #1341 below ?


1341. Frauds and swindles.

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

[Codified to 18 U.S.C. 1341]

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As far as I understand right now just the ANA endorses a TPG and I think NGC is the only one endorse by ANA. (If I'm wrong here please correct me)

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ANA recognizes or endorses one firm as the official grading firm of the ANA. But that endorsement is sold to whatever grading firm ponies up the sweetest deal in cash and other goodies such as free gradings (mainly cash.) No other qualifications. Currently NGC has the endosement but it expires this year. Right now the ANA is working on a new program which will allow them to endorse several firms if they meet certain standards. But there has been no clarification as to what these standards will be, and many think it will boil down to whoever gives them enough cash over a set amount will get an ANA endorsement.

I agree, MC. I also think the ANA should be a little more sensitive and responsive to us little people in numismatics and listen a little harder to us instead of to the big dealers. I'm an ANA member and I've noticed in the on-going Board elections that the issues revolve more around minor election rules and other constitution changes instead of discussion of those grassroot issues which affect most of us such as fraud in the online market place and, of course the issue of endorsement of TPGs.

As some know, I am very active in an organization which, for almost 100 years has been VERY responsive to its membership and is VERY sensitive to its position and reputation in the US and the world: Boy Scouts of America. BSA is chartered by Congress, has official representation down to the community level. While there's no way the ANA is large enough to have this degree of outreach, it still needs to recognize that it is the only organization which represents ALL numismatists whether they are ANA members or not.

Fred

I would like to put some thoughts out about possible ramifications to the TPG "industry" if some sort of government controls were promulgated and enforced.


I do not know the current security systems that the ANACS, NGC OR PCGS uses, if any. I will not address any of the other grading companies or boiler rooms that are used to put out slabbed coins.

A big concern has always been about switching or missing coins that were sent in for grading. I would "guesstimate" that all areas of work are under surveillance 24/7. Furthermore, they must take some minimal security measures that most people would not be privy to. This could be effective for controlling their workforce and insuring that no petty (or major) theft is occurring. However, I would imagine for the sake of the bottom line, that expenses and costs are held to a minimum. (Need to pay the endorsements that we have read about.)

Now bring in the FEDS and their regulations. Some things that would occur would be:
1. Quadruple the amount of paperwork with reports having to be sent to regulators and/or made available on-site for the regulators to conduct no-notice inspections or even a scheduled annual or semi-annual inspection. (BIG COST)
2. Upgrade all facilities to a level that will meet governing directives for that industry. (IMMENSE COST)
3. Almost automatically, they will have to institute some basic requirements for their staff. Will have to complete work and family histories prior to being hired. Will be required to be bonded.. Will have to wear special (pocket-less) clothing in coin grading areas. Must pass through metal detectors when entering or leaving sensitive areas containing coins. Will be required to submit to search and seizure rules, et al. (WOULD BE MONETARY COST AND POSSIBLY NOT GETTING THE BEST QUALIFIED GRADERS)

The cost for having coins "slabbed" for any reason, good or bad, will probably double and then those advocating Federal Control will scream that the cost of having coins graded is atrocious.

These are just a few things that could happen if any type of government control was to be implemented. It is just a quickie off the top of my head thing and I have not studied it nor have I done any research into this problem.

Berry

Conder, you forgot to mention the 2000 Federal Inspectors which would need to be hired and trained to ensure the TPGs are in conformance with the regulations.

I presume you've worked with, for, and/or against the Feds in earlier times. We're overdue for another Revolution.