PCGS Regrade service = grade inflation?

I was looking at the PCGS regrade service, and they guarantee that your coin grade will never go down. (https://www.pcgs.com/services/regrade)

Doesn’t that eventually amount to grade inflation, since coins submitted under the service can only improve in grade?

 

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Sigh.......

 

Just to be comprehensive, there are two options: improve or unchanged. So in theory this doesn't necessarily lead to inflation, but in practice...... yes.

The biggest problem that I see with this option is that PCGS is basically saying, "Pay us to grade your coin again because there's a reasonable chance that we screwed it up the first time". If they had confidence in the accuracy of their own service, then why would they see a point in offering this option? And, if they mis-graded the coin the first time, then how can they justify being paid again to correct the mistake?

 

Maybe when the newness of the coin wears off in the owners mind, PCGS with regrade and renue the new
How does that work for coin wear in a holder?
Or environmental issues that show up after the slabbing?
PCGS must have some small print for Act of God or slab mishandling.

 

I don’t see it that way.

 

No, if you read more carefully, they won't crack it out to downgrade it.

 

Maybe ""Pay us to grade your coin again because there's a reasonable chance that we can increase your number of submissions and raise the price you may receive from those who believe in us when you sell it." My conclusion , my opinion, not to be my action .

 

It says they crack it out and grade it raw:

“The ‘Regrade’ service applies to coins that are already encapsulated and graded by PCGS. If a customer feels that their coin may qualify for a newly recognized variety or warrants a different grade, but they do not want to remove the coin themselves, this service may be used. PCGS will receive the coin, note the grade it arrived, remove it from the holder, grade the coin raw. The coin will not return at a lower grade than it was received. If a coin is received as a PCGS MS65, it will be returned to the customer as a PCGS MS65 or higher; never lower.”

I added the accents to point out why it sounds like grade inflation to me.

Charley, why the sighs? Did you realize that there’s something you can’t argue against?

 

So it's the cross-over that doesn't get cracked out unless it crosses? It's SO confusing.

 

Yes. The “regrade” option is for existing coins (maybe earlier gen holders) that the owner wishes to have an upgrade on. Personally, I would feel better if PCGS was willing to lower the grade with buyout provisions.

Separately, I saw NGC has switched to a 10-pt scale.

 

Well not really. The 101 point NGCX scale (0.0 - 10.0) is an option. They're not giving up on the Sheldon scale.

 

Ahh, so under the NGCX scale, would a MS61 coin be closer to a 5.0?

 

No, 9.1

https://www.ngccoin.com/specialty-services/ngcx-10-point-grading-scale/

 

Unless a collector is well off, I can't see that a regrade would be worth the cost and aggravation. Anyway, You can't trust a man that has never personally sent a coin in to be graded.

 

It sounds good. I would not want them downgrade the coin. I can see where owners of big ticket material might use this service.

 

Just so I got this right, may warrant a higher grade, so a pR67, is removed and regraded, 3 or how ever many graders look at it (not knowing it’s grade?) and they grade it a 63,….I get it back as a 67? Seems silly, but I’ve been up since Friday morning.

 

Before they changed their policy to grade never decreasing and if the grade went down, they would pay you the market value difference between the old grade and new lower grade. I’ve heard this did occur for some folks, but never did for me. I never had a coin go down in grade. Most of my regrades were returned with the same grade. The the ones that went up were in older holders.

The ability to resend coins for grading again, whether regrades or reconsideration (these are different), with no monetary risk has a ratcheting effect on distribution of grades in the pop reports. It gradually pushes coins into higher grades. Grade inflation by this method has existed almost as long at TPGs have.

At some point, the process will slow. There is a limit to how far a coin can go upscale even with numerous regradings. We’re not there yet though.

Cal

 

Should we attach a small sticker next to a slab's grade that says "rent me?"

 

Reconsideration is the service you were thinking of where you send a PCGS holder and it won't be cracked unless it goes higher.

https://www.pcgs.com/reconsideration

Regrade is if you don't care about the holder (since it will be cracked).