Thread ATS about "rampant gradeflation"

I am hesitant to enter this topic of discussion as I have engaged in heated debates about this subject many times in the past on this forum. I don't dispute that gradeflation exists, the inherent subjectivity of grading and financial reward for higher grades will almost ensure that PQ coins will eventually end up with a higher grade. My problem is with those who claim that gradeflation is the result of a conscious loosening of numerical grading standards by the TPGs.

 

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I read that post before I logged on here. That will disappear once they open up and check the message board. I guess no one was checking it out over the weekend.
Those are just my thoughts.

 

That was a good post. Food for thought.

 

My post was saying exactly this. I don't want to start a heated debate either because honestly I don't know enough to argue. I was wondering if you could explain how you have gradeflation WITHOUT a conscious effort to loosen grading standards?

 

Threads on this topic seem to always get a bit heated on all the sites. Maybe it's a good thing that folks kick it around. The one over there may have a chance of not getting pulled. It's not as bad as some have been.

 

When it comes to copper - I see more problem large cents in problem free holders now a days. I won't say they loosed their standards, but it sure seems like it. Of course all of this is moot if you buy the coin and not the holder. Heck three of the coins I bought this past weekend are in PCGS OGH - and I thought graded correctly. I would certainly not play the crack out game with any of them. I will let others play that game. I just find it interesting that a lot of the coins I look at in the new holders I would not pay the price they asking since I do not think the coins match what I think the grade is. Oh well - back to my regularly scheduled surfing.

 

A voice of sanity. Not all TPGs are out to fool the public. DO you think that they might actually be here to HELP the hobby? Perish the thought (sarcasm).

 

Excellent write up, thanks

 

This is one reason I personally don't play the slab game. Besides the obvious gradeflation mentioned having an impact on coin values, one can only wonder how much certain auction sites were paid to allow only coins graded by certain graders to display the grade of a coin in the listings on their auction sites.

 

"Gradeflation" exists for one fundamental reason. Coin collectors buy the coin, not the slab. Investors and speculators buy the slab, not the coin!

 

There isn't as much "grade inflation" as you think. Oh, sure, it exists. However, any business has automatic redundancy into it in terms of inflation of profits/resources/corporate health, etc. The coin business/ hobby is no more or no less inflated in terms of grading, or financial manipulation as any other. Does one question the quality and price of goods when walking into Target?

 

I should hope they do. Many of the items are not of great quality, and differ from some others that seem similar. Also, you can get about the same quality of stuff Target sells cheaper at Wal-Mart. Same junky quality, but a little cheaper. And yes, the manufacturers make products that look like their normal ones for less to sell to this type of store. They just use either a lower quality of goods or leave out some of the functions. They make it 'look good' but it won't last as long or feel the right way as quailty goods.

Doesn't hurt to believe there is more gradeflation than should be and watch out for it. Quite honestly, with the one that he showed was a 64 and got bumped up to a 66+, my beef would be more if that coin could be supported as a 66+, why the heck are others I own or see that look like that limited to 64 or less by the same grading company?

No, I don't hate on the TPG mentioned, in fact my Frankie collection is all 64/65 PCGS and will stay that way. But the fact is you have to determine if the coin inside that little plastic box is overgraded, undergraded, graded right, and where it fits in with what you want.

 

Well, I would presume that no experienced collector would buy a coin that he/she KNOWS to be improperly graded--to me that is a give. BUY the COIN first, and also buy the holder--that is my take on the old maxim.

 

I understand mistakes can happen and TPG's may over grade as well as under grade here and there. Where I struggle is seeing a $175 coin turn into a $1900 coin because of a piece of paper in a slab. I would think a conditional rarity such as this would be scrutinized thoroughly before getting the rarity grade. I believe such mistakes not only devalue the properly graded coins already in population but could spawn a generation of lottery playing collectors hoping to catch a TPG employee having a bad day. Who ultimately wins in the crack out game? The TPG! Who loses, the poor sap that buys the overgraded coin.

 

Understood! Now, go play some poker and relax!

Chris

 

Okay........don't!

Okay........don't!

Okay........don't!

Chris

 

A good take on the maxim, for sure.

 

And Rick Snow joins the fray, posting an article he wrote about grade inflation of "AU" 1877 IHC's and how that actually drives down prices for accurately grade coins.
http://forums.collectors.com/messageview.cfm?catid=26&threadid=937943&STARTPAGE=1

The message, I think, is know your series and do not rely solely on slab grades and little oval stickers.

Let's also remember that the number of available classic coins is finite.
Where else can grades go, but up? The TPGs' are for-profit companies and if they hew the line and don't upgrade anything their profits fall off. They've created registry sets, + and * grade exponents, but ultimately they have to upgrade to stay in the game.