Consortium hypothetical

[MikeInFL]

Suppose for a moment that you have in the past bought coins from a dealer who is a member of the Consortium. Furthermore, assume you paid PQ money for those coins, and are happy with both the coins and the price paid.

 

Fast forward a few months in the future. Now the Consortium comes along and you submit your coins to the Consortium only to have the vast majorty come back as "not good enough".

 

Three questions...

 

1) Would this change your opinion of the dealer?

 

2) Would you expect the dealer to do anything about the situation? If so, what?

 

3) Could the Consortium be counterproductive to the interest of the dealers involved?

 

Some food for thought...Mike

 

[edited to change "dealer's" to "dealers"]

[gmarguli]

1) Would this change your opinion of the dealer?

 

No. I initially assume all dealers are trying to screw me. It's a nice surprise when it turns out to be incorrect.

 

 

2) Would you expect the dealer to do anything about the situation? If so, what?

 

Yes. I would expect them to complain that the Consortium is too strict and dealers are getting upset about it and if things don't change and they get back to reality then dealers/collectors will move toward another service. At least that is the standard line now about TPGs.

 

 

3) Could the Consortium be counterproductive to the interest of the dealer's involved?

 

Of course. It may prevent average coins from being labeled as PQ. That is assuming that anyone will actually care about the Consortium's opinion, which I highly doubt.

[DirtyGoldMan]

1. Quite possibly. I certainly would be less likely to value his/her opinion in the future, sticker or not.

 

2. I do not believe there is any real recourse. The coins were sold unconditionally.

 

3. Absolutely. This could become a nightmare for the participating dealers, as I have suggested in other threads.

[Cladiator]

Some food for thought...

No thanks. I'm full.

[carson city]

Nothing stays the same---Coins 101 & Paris Hilton

[rbrown4]

Mike,

 

Not trying to be difficult, since I believe you are trying to raise some legitmate concerns with your questions but it seems to me that there may be too many unknowns in order form good direct responses, at least IMO.

 

My responses would depend on the following:

 

Were the coins slabbed and graded when purchased from the dealer?

Was the dealer a member of the consortium at the time of their original purchase?

Was the dealer a member of the consortium when I purchased the coins?

Who is submitting the coins to the consortium, the dealer I bought them from or another dealer? (it is my understanding that only member dealers will be allowed to submit to the consortium and not individuals)

 

Again, just trying to clarify some things.

 

Rey

[MikeInFL]

Rey, Basically, the hypothetical is about "grandfathered" coins that predate the Consortium...

 

Were the coins slabbed and graded when purchased from the dealer? Assume yes.

Was the dealer a member of the consortium at the time of their original purchase? Assume no, your purchase of said coins predated the Consortium.

Was the dealer a member of the consortium when I purchased the coins? Assume no, see above.

Who is submitting the coins to the consortium, the dealer I bought them from or another dealer? (it is my understanding that only member dealers will be allowed to submit to the consortium and not individuals) Assume it was the same dealer, but I'm not sure how either answer will impact the questions posed....

 

Hope this helps...Mike

[rbrown4]

1) Would this change your opinion of the dealer? No, since the coin was purchased already graded and slabbed prior to the Consortium, at that point nobody including the dealer nor myself would not what was acceptable to the Consortium or not. Plus it is my responsibility as a buyer/collector to be sure myself of my decision to buy a specific coin and to be content with the grade and condition at that time.

 

2) Would you expect the dealer to do anything about the situation? If so, what?

No, since the coin was purchased by me based on the coin at the time of purchase including but not limited to condition, grade, marketability, value, need, etc. Regardless of which dealer I requested to submit the coin to the Consortium for me, I would hopefully discuss with that dealer the chances of it being accepted by the Consortium or not. In addition, I would have done what research on my own that I could to help determine if I even wanted to submit it to the consortium.

 

3) Could the Consortium be counterproductive to the interest of the dealer's involved? Yes possibly, if the dealer had reasonably assured me that the coin would meet their standards and it did not, I would be more careful with that dealer again. However being incorrect once does not indicate consistent problems. But on the other hand I am sure it is no different than if I went to a dealer today to submit coins to NGC for grading and asked for their opinion of possible grade. I am sure they would give me their "conditional opinion" but I would not expect them to stand behind that 100%. If they consistently steered me wrong, I would be leary.

 

Rey

[carson city]

You raise some very interesting points. Don't expect any of them to be addressed anytime soon by CAC !

[rbrown4]

You raise some very interesting points. Don't expect any of them to be addressed anytime soon by CAC !