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What if . . . .

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I think that we all know that the major TPGS provide "value added" services in the collectibles business. They add value to a coin, for example, by providing (i.e., selling) an opinion on authenticity and condition. The market determines the "value" of the opinion; and, in some cases, a 1-point difference in the grade of a coin (which is, after all, a subjective opinion) translates into thousands of dollars.

 

My question is this: What do you think would happen to the value of a TPGS opinion on a coin if the TPGS subsequently went out of business?

 

Rest assured that the premise of this question -- a TPGS going defunct -- is purely hypothetical. I have no knowledge of the stability, financial condition, or future plans of any TPGS (which includes, of course, the sponsor of these boards). flowerred.gif

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If a TPGS went out of business due to poor business management that did not call their grading parctices into question, I don't think there would be an adverse effect on the value of their graded coins. In fact, if it were to be a highly reputable company (very unlikely), it is a distinct possibility that their slabs and inserts could become valuable or add to the value of the coin. There are very, very few things produced in the marketplace that haven't become collectible. If this were to occur, you very well might hear some collectors of exonumia say, "Buy the slab, not the coin!"

 

Chris

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IGWT I agree mostly with Chris. Might just add that I have had several coins from not well known TPGS that are in NGC holders now. I bought the coin and not the holder. So, if you just follow the "golden rule" of buying the coin and not the holder, it should never matter whose holder the coin is currently residing in---you can always change that [as long as you know what you are doing]. With millions of coins in the "major" TPGS holders, it would be difficult to punish the coins just because the company went out of business. Bob [supertooth]

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I often hear how certain TPGs during certain periods of time were either loose or strict on their grading of certain coin series. These points of time can either be traced to the appearance of the labels, or the serial number on the slab.

 

Having said that, if a TPG went out of business, I don't think it would impact their value that much, even on sight-unseen or e-bay transactions. Their general reputations are pretty much set in stone, and I think bidders and buyers would look to that information rather than the circumstances that led to the TPG going out of business.

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