NGC label buyback program: Another reason to crack out old NGC holders

Interesting that they give a 50-cent credit for returned labels. I wonder if they're going to retro this for those who voluntarily returned them in the past.

 

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Why would they want them back - each one has it's own unique serial# on it so they won't be able to reuse them!!?? Or when you say "label" do you mean something else?

 

Seriously? I hope you are joking... It is so they have a more accurate count of how many coins are out there in each grade, etc

 

Seriously are YOU joking - what would be the ratio of intact holders to crack-outs???

They have the serial#s on the labels in their computer base - look it up!!! The second most popular coin grading company in the world and you think they need people to turn in their cracked labels to know what the hell they got out there??? TOOO funny!!!!

 

I don't think you understand... at all. If someone cracks a coin out, it is usually to re-sell or re-submit. If re-submitted, NGC would have both coins in their data base. But in reality, it is the same coin, not 2 coins. So cracking them out and re-submitting skews their numbers without them knowing. By turning the label back in, they can delete the coin from the database, since it is no longer in a holder.

 

In other words, if I take a coin that 2 are known to exist in the world, and re-grade it 100 times, it would look like 100 coins now exist. Skews the numbers. They want to know if a coin is no longer in the holder.

 

In addition, the crackout game is almost always done where a conditional rarity exists. By inflating the number of coins right before the price jump, it exacerbates the problem.

 

A marketing ploy to get you to send in more once you get enough credits? Just guessing.

 

Do you remember the old saying about making assumptions?

Now, since this is all "TOOO funny" for you as-is, please allow me to give an example that should, hopefully, change your mind. I am still in possession of a coin purchased for and never picked up by an ex-client, that has a total NGC pop of five, so this one example represents 20%, right? Wrong, and this is because, unfortunately, this example was resubmitted at least once and because NGC was not notified of the resubmission, this onecoin now represents at least two , or 40%, of the total population. For a coin such as most Morgans with pops well into the thousands, tossing a label isn't that big of a deal, but with other coins such as the above, it certainly can be and isn't too funny after all.

 

edited - reading this makes my head spin - go ahead and make fun of me - it better be good cause alot of people have beaten you to it - I'de love to know your occupation and if you say :
mathematician
Which I'm sure you are gonna - I'll just sit back and laugh!!

 

I seriously cannot tell if you are joking, or if you really do not understand why they do this. I hope you are joking.. and you would be pretty convincing if you are.

 

Not sure why the @BooksB4Coins post was so hard to understand, but I am sure it's not worth explaining again.

 

Now that, if anything in this thread, is "TOOO funny", Markus. You cock off to someone about something you're clearly unfamiliar with, yet when a little of the same is dished your way, you come back with this idiocy. My attempt to explain this was not an attack, but this fact seems to be lost on you.

Perhaps instead of sitting back and laughing at us, you should be laughing at yourself, or better yet, spent reading. I say this with all due respect, of course.

 

Well it'll make our coins more valuable, because it is deflating the number of "coins" out there! I guess 50 cents is an incentive, but unless I'm sending something in, I'm not going out of my way to ship ngc coin labels.

 

Can we all just sit around the camp fire singing Kumbayah?

 

No sides being taken here, but I am going to summarize how a resubmission happens, and why the NGC program is beneficial to the HOBBY as a whole for nothing more than accurate population reports.

Dealer #1 submits a rare, raw, 1916d Mercury dime after checking the population report of them, which lets just say at that point in time was exactly 10,000. He gets it back, it is a MS64. (population report at NGC now reads as 10,001) He was hoping for a 65. He decides the price difference from a 64 to a 65 is worth an additional submission cost expense. (this is the part people who don't get it are missing) Dealer #1 then "cracks out" the pretty MS64 slab he has the 1916d Merc in, and resubmits it raw. Obviously he will not send it in pre-graded in it's current slab. He wants a fresh palette for the grader. So he cracks it out, and resubmits it. He gets it back, and it is again a MS64. He cries himself to sleep while sucking his thumb, and whips himself with a belt buckle 65x to rectify his error. Before Dealer #1 submitted his coin the first time, there was a population of 10,000 graded 1916d Mercs. As of this moment, this dealers submissions, there are now 10,002 in the population. The next day, the dealer takes his twice confirmed MS64 Merc to the coin show, and sells it to Dealer #2; who eyeballs it thinking "whoa, I can easily crack this out and resubmit it and get an MS65".

Dealer #2 now cracks out his dime he purchased. He sends it off to NGC raw. He too doesn't wish to show NGC that they previously graded it as an MS64. He waits some time, and lo and behold, it comes back as a MS65. He is a winner! And the total population of graded 1916d Mercs is now...drumroll.....10,003! That's right. The same coin represents 3 of the total population......

THIS IS THE PURPOSE OF THE NGC PROGRAM. Should these dealers save these old slab/label pieces, they can send them in and get a credit, all while contributing to an overall more accurate representation of the true population.

Simple.

 

Oh, and if I am wrong, someone, please, correct me. My highhorse isn't that high that I am afraid of falling from it to learn how not to. Regular eater of humble pie over here.

 

No need. While your example plays more into what Lehigh added earlier than to the overall/total pop problem, you are correct other than it is not only dealers but collectors too who should do this. In the end it is to their benefit as well.

 

No No, you are absolutely right. I was trying to use a simplified and concise number of characters, but yes, collectors definetly play a role in it as well. And the top pops are the ones that truly are skewed the most.