To CAC or Not to CAC

[EZ_E]

[font:Comic Sans MS]To CAC or Not to CAC [/font]

Article Written July, 2008

 

 

That is the question. The Collector's Acceptance Corporation was founded by John Albanese, one of the industry's top experts. His goal is to address the problem of low-end certified coins dragging down the bid levels. While PCGS and NGC do an excellent job, both have been grading coins for over 20 years. Inconsistencies are inevitable, resulting in coins that probably shouldn't be in their stated holder. These problem coins are difficult to sell, becoming a large percentage of the available product on the market and suppressing bid levels. For example, if a Barber 50c in PCGS PR67 sells in auction for $5000, it probably is not a particularly pleasing coin, but CCDN (AKA the Bluesheet) picks up this bid. We would probably charge over $7500 for an attractive and properly graded PR67.

Are some coins worth 50% more than others in the same holder?

Yes. One of CAC's goals is to establish a market for those premium quality coins and post bids for coins with their sticker of approval. PCGS and NGC are of equal value, if CAC approved.

 

Should you purchase CAC coins exclusively?

No. This would unnecessarily limit your buying options, as only a small percentage of the coins graded by PCGS and NGC (the two services CAC recognizes) have been submitted. Also consider CAC is offering an opinion, just like PCGS and NGC have done. If you had different numismatic experts grading at CAC, would different coins get approved? Absolutely. A particular mark or variety of toning may disturb some numismatic experts and not others. Grading is exceptionally subjective, and collecting is a highly personal experience. There is simply no substitute for viewing the coin in hand.

Should you send your coins to CAC?

Maybe. If you are planning on selling them at auction, it's not a bad idea. Due to the number of online and phone bidders, a CAC approved coin may realize a higher price than an equally nice non-CAC one. This seems especially true of NGC material. If you are planning on selling them privately, not unless the dealer you work with will pay more for CAC approved coins. For most dealers this is not the case. If selling is not in your immediate plans, reassess the market in the future. If CAC is a dominant market factor, their policies or stickers or any number of factors may have changed.

 

Does Pinnacle send all of their coins to CAC?

No.

 

Do we send some of our coins to CAC?

Yes. We have been sending coins to CAC when we have a lull between shows in the office. We have also sent coins by client request, upon confirmed sale if the coin(s) do get approved. We do believe that a CAC sticker encourages sales to certain clients. In fact some clients insist on it, but they comprise a minority of our clientele. Most continue to rely on our assessment of a coin's quality and eye-appeal as well as their own.

 

CAC does provide a comforting second guarantee to PCGS or NGC. Although any dealer with whom you have established a long-term relationship likely has been providing you with a similar service all along; i.e. guaranteeing to buy back all coins, taking care of coins that turn in the holder, etc. If your dealer does not do these things, we recommend buying from those of us who do.

 

If you have any questions about this article, please feel free to call us at 1-800-PCGS-NGC.

 

 

© Copyright 2008, Pinnacle Rarities, Inc. All rights reserved.

[michael]

tender

[physics-fan3.14]

I like the phone number.

[NPCoin]

Better question is: Why CAC when you can CrACk???

 

Plastic is for credit cards, not coins.

[nwcs]

I dunno. I've wondered if I should send a couple of my better pieces to them. No matter what I believe, if the market thinks there is a premium to the CAC sticker it may be worth it.

[EZ_E]

Better question is: Why CAC when you can CrACk???

 

Plastic is for credit cards, not coins.

Good point & Happy Birthday!