Will values for PCGS coins fall ?

[reid1836]

What do you think guys and gals ? Will will values for PCGS slabbed coins fall ? Now that they have neither endorsment. Hmmmm.

[gmarguli]

Nope.

 

Values for PCGS coins will fall if they continue to grade inconsistently or other grading services are perceived to grade more consistently at the same grade level.

 

Personally, I expect the value for PCGS moderns to drop as their registry continues to lose steam and as more people begin to realize that NGC is grading on par with them.

[reid1836]

As many of us have seen in the past, grading coins inconsistently can cause a marked loss in collector confidence. Resulting in lower prices paid for coins graded by that particular company . Some that have fallen by the wayside started out grading coins fairly close to the A.N.A. standards and recieved strong money paid for coins slabbed with their brand. Then somewhere along the way started to grade off the beaten path. Values for their coins plummeted. A coin certified by brand X was worth only a fraction of what the same coins in the same grade were worth in a PCGS or NGC slab. I submit that a loss of the PNG endorsment has the potential to cause a loss in consumer confidence ergo a loss in marketablilty.

Remember that a good deal of the influx of money coming into the coin market is from newer collectors. Who have not yet developed their grading skills and rely heavily on what are touted as the top grading services to ease their gambit

My crystal ball says we`ll start seeing an unusually large percentage of PCGS slabbed coins coming into the market with values equalizing with those of A.N.A.C.S., ICG, and SEGS. While values for N.G.C. slabs will rise. Of course this is just pure speculation. But it will be interesting to see how the market reacts to this new development.

[IrishMike]

uh No they won't.

[XpipedreamR]

I don't think past submissions or overall interest in PCGS graded coins had anything to do with the hologram on the back of the slab. Likewise, I don't believe that future interest will be affected, except to the extent that PNG dealers will obviously be using their "free" submissions to NGC.

 

 

 

Personally , I prefer PCGS and NGC coins to other companies' slabs. My perception of the values of these coins is unchanged. I will admit that I have a slight preference for PCGS grading based on the coins I have seen. If the grading of coins I see in NGC holders were to tighten, and PCGS grading loosen, well, that would be a different story in terms of value(to me).

[jom]

If the grading of coins I see in NGC holders were to tighten, and PCGS grading loosen, well, that would be a different story in terms of value(to me).

 

The "loosening" and the "tightening" is what creates the problem in the first place.

 

If people would simply learn how to grade themselves this "perception" would no longer exist. People would come to the conclusion that most of the grading services are all pretty much the same. The "issue" of which is best would all become moot...

 

jom

[Oldtrader3]

There are millions of PCGS slabs out there. They have a large population distribution on both sides of mean grade. I believe that it would take a long time to destroy this goodwill inertia, despite endorsements.

 

Market Grading floats somewhat, in correlation with demand. I do not think that most savvy dealers and collectors are greatly affected by this phenomena. The coin speaks for itself. I certainly am not going to spend $0,000's to resubmit my TPG coins just because of temporary Market Grading shifts.

[gmarguli]

There are millions of PCGS slabs out there. They have a large population distribution on both sides of mean grade. I believe that it would take a long time to destroy this goodwill inertia, despite endorsements.

 

I don't think it would take too long to destroy the goodwill out there.

 

Look at PCI. While they were always considered a "cheapie" grading service, for lack of a better word, they did a fine job for many years. They had an ugly holder and no grading guarantee, both of which kept them from becoming a major player. However, for a long time their grading was fine. Maybe not as consistent as the big two, but overall it was fine. PCI gets sold and the new owner loosens up the grading and 15 years of goodwill was destroyed in a matter of months. PCI has since tightened up its grading a little, but the credibility isn't coming back (they still suck, but not as much right now). All it took to destroy the PCI name was a few months of overgrading.

 

All it will take for PCGS (or NGC) to fall is to get a reputation of being liberal or inconsistent for a few months and their reputation will suffer drastically in the marketplace. The big difference is that they have farther to fall and they likely have the braind and money to climb back up. Put someone in charge of a company that has no business sense and has drained the company of its cash reserves and we'll see what happens.

[BillJones]

No, the value of PCGS coins will not fall because the company does not have the endorsement of the ANA or the PNG. Properly graded PCGS coins will continue trade at the market or above for PQ pieces just as properly graded and PQ NGC coins will continue to do. Overgraded PCGS coins as well as optimistically graded NGC coins will sell for less among those who are more knowledgeable.

 

The people who pay the biggest premiums for PCGS products and swear by the company to the extent that they will buy not other certified coins are generally the least knowledgeable coin buyers. Some of them barely know what the ANA is and a good percentage of them have never heard of the PNG. That may sound disrespectful, but it’s the truth. Some guys only care about being #1 in the PCGS Registry, and everything else is secondary or not even on the radar screen.

[reid1836]

Do you think that the PNG went with NGC based solely on the highest bid ?

Perhaps PCGS`s high profile and the continued published accounts of over-grading tilted the scales in NGC`s favor. It`s actually a great dodge tactic for dealers. They can say that the PNG disassociated itself from PCGS for grading inconsistencies.When asked about why they now endorse NGC. But lets say their inventory is predominantly PCGS slabs with only a scattering of the others. Then it would be easier to say NGC was just the highest bidder. Since PNG stands for Professional Numismatists Guild ( for those of you who are new or beginning collectors this amounts to an association of dealers.) These dealers maintain multi-million dollar inventories . If collectors were to lose confidence in a product they had a large supply of in stock, they could suffer huge financial losses. Basic economics.

If you sell a product that used to be top of the line but now is widely known to have had quality problems. Chances are, that the price you can get for it now is somewhat less that it brought in the past. As a collector of key date coins I too stand to lose financially if values drop for PCGS coins. But, my collection is well diversified among NGC, PCGS and ANACS certified coins.So a certain amount of cushion has been provided.

 

Food for thought : If the ship is sinking don`t jump into the water, get on a better built ship !

[Tradedollarnut]

[spy88]

Will will values for PCGS slabbed coins fall ?

 

NO but...

 

NGC broke the news with a press release link that was simple, informative and without malice toward anyone or anything. On the other hand, PCGS president D. Hall, instead of congratulating NGC and "shaking hands", started a thread across the street that would read as from a spoiled loser with snide remarks. After a number of posts from forum members, CU (or DH himself) edited his statement to a more "politically correct" one meant to soften the original. But the damage was already done. A flood from a dam break only goes one way.

 

Further posts by members and then David Feigenbaum, president of DLRC, posts twice---once to explain their position on the matter and a second time to answer members questions. What did he get for his involvement? Lambasting from most of the posters and worst of all, CU decided they didn't like what he said so they edited both his posts! Think about this people! CU decided to put their own words in Mr. Feigenbaums post or deleted what they deemed X-rated for its members! I do not know what he said originally, nor do I know what was added/taken away, but below both his posts, CU shows having edited them.

Does this sound familiar to those of you old enough to associate this tactic as akin to the state run Soviet newspaper spewing only propaganda and "eliminating" anyone that tried to print the truth?

 

No, PCGS will not suffer from their loss of endorsement by PNG in any real financial sense. But the credence of its president has taken another very serious and very real plummet. THIS is what will hurt PCGS. Its called "Goodwill" and it has been sorely lacking over there for quite some time. It WILL come back to haunt him and his company.

 

JMHO

 

David

 

 

[BillJones]

I'd say that the PCGS reaction to this is consistent with their general attitude, both toward their customers and their approach to business in general. PCGS just isn't a very collector friendly, dealer friendly and customer friendly organization. They think they are better than everyone else, and for a while when their coins were placed in green label holders they had a case to make. Of late however, their standards have slipped, but their arrogance level has remained the same.