C.G.A in the news

Well decided to analyze the situation:

CGA is in fact still in business. http://www.cganotes.com/

PCGS is obviously, and still grades currency. http://www.pcgscurrency.com/index.html

PMG is still in business (this is the currency grading arm of NGC). http://www.ngccoin.com/about/currency-grading-PMG.aspx

Other currency TPGs exist, but this seems to be the "big 3" as of right now. No other TPGs even made the first page in a google search.

Not a scientific survey per se, but the first 200 eBay auctions of US paper money showed 48 graded notes. OK, so 98% ungraded may be overstating it. But still it looks like about 75% is ungraded. Shows that currency grading is nowhere as big as coin grading, but to be fair, currency collecting is nowhere as big as coin collecting either.

Make of this what you will.

 

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You obviously didn't get my reference to the Beatles as a past fad... a term that describes the fact they have broken up in 1970 and have produced no new material since.

And currency grading clearly isn't on the rise. It's not dead, probably not even dying really, but it's no bigger than it was when it first existed and likely is even smaller. And it's nowhere near as big as coin grading, and doesn't look like it will even get anywhere close anytime soon. If you seriously think currency grade is, was, or ever will be, anywhere equivalent to the popularity of the Beatles, you need to seriously reevaluate such an appraisal. "Bigger than Jesus" it definitely isn't, hasn't been, or likely ever will be. Even most people that don't like the Beatles or ever heard their music at least have heard of them. I've met many people who aren't aware that currency grading companies even exist (or still do if they're aware that they have at one point). And by my observation of venues I've been to where currency is sold, only a very small percentage of it is graded, in the same places where almost 100% of the coins are. If coin TPGs are the Beatles, currency TPGs are at best Nickelback.

 

Heritage auctions only sell a small fraction of the currency that is being sold throughout the hobby, and as a high end venue of course a higher proportion of their sales will be graded. Does not alter my assertion that currency grading is nowhere as big as coin grading and in fact is only a small portion of the market even in the realm of currency collecting.

If PCGS and PMG (PMG is the currency side of NGC) thought that currency grading was worth devoting as much attention to as their coin grading portion of their business, they'd hire more graders to clear their backlog. Clearly they don't think it's worth it, and that should tell you something right there.

The fad may not be dying, but it's not on the rise either. Give it another 5 or 10 years and see if it's still around.

 

CGA notes still sell for a lesser premium at the same grade when compared to PCGS and PMG. But more people are flocking to CGA because of the backlog with other two TPGs.

Here's an older CGA note for sale on eBay. It's a $500 FRN in 58 grade. Even the seller notes pin holes that CGA completely missed or intentionally omitted.


http://www.ebay.com/itm/1934-500-Fr...d-Dollar-Bill-FRN-Graded-CGA-58-/321031725767

 

I think a good question to ask is if you had the exact same note in three different holders
PCGS, PMG or CGA as a collector of MPC TPG notes i would not personally touch anything
But the top two PCGS and PMG my preference please feel free to disagree LOL

 

It should be noted that is an "old CGA" graded note. The new notes have a large star to denote they are from the new venture instead of the old.

 

That statement is 100% correct, but at the same time, with all due respect, it is highly misleading as to the effect loss of trust in a TPG can have on the market.

The problem is perception. "Value" is an everchanging theoretical concept. It is not engraved in stone.

There are many collectors (not a majority, I hope) who think that a slabbed note/coin has added "value" because someone else thinks it is in a certain condition, and they trust that someone's judgment. To that segment of the numismatic population, loss of faith in a particular TPG directly affects the prices they are willing to pay for items in that TPG's plastic tomb, and that in turn affects the realizable value of all such items.

 

I believe any CGA note not graded by the current owners with a star on the holder is already being valued less than similar grades from PCGS and PMG. My guess would be as a result all CGA graded notes probably currently suffer some. That can change over time if they provide a consistent and accurate service.

 

I had an interesting conversation when selling a non-graded North Africa $10 to a dealer recently. I was making sure he had seen a defect and he said yes and we settled on a price. I told him I had a graded North Africa $10 I would also be selling. He was less interested. I ask why and he told me he can debate the quality of a non-graded note with a customer but a note in a holder is what it is. I see value in having the opinion of an objective third party review a note. That being said I have also been advised that not all 65 PPQ are the same. Some have more eye appeal than others so there is variance within a grade. I also spent a fair amount of time talking with a PCGS grader at the National Money Show. As a result I came away with the view that graders and collectors come at determining the quality of a note from slightly different perspectives and I think that leads to some of the friction and misunderstanding. My impression is collectors are willing to overlook some things due to eye appeal where graders are focus on if something is in the original printed condition. I was told some defects don't effect the grade if they would have occured prior to the notes release so they are part of the original condition.

 

Would be curious to know if anybody has ever cross graded to CGA from the top two grading
Services and what the result was??

 

My guess is currently CGA does just a good a job as PCGS and PMG. But what I understand is they are suffering from allegations under the previous ownership.

 

That,s a big stone to crawl out from under, i personally have not seen many MPC,S graded by
Them maybe just a handful since that,s what i deal in, but i think even though they might
Do a good job the stigma will always be there.

 

Reputation - takes a long time to build and just a brief moment to ruin...

 

If you are ethical in the business you do, ruin is out of the question. Are we ethical?
Vinny

 

Are you?

 

Of course I am. Why would you even consider asking? Everyone but a distinguished few would concur with that.

 

Sorry, I am not familiar with who you are and you posted "are we ethical?", so was unsure where you were going with that one.

 

These days the word "ETHICAL" in business is used very loosely!!