Submitting coins?

Well, didn't the standards loosen so the profits would keep coming in? If the strict standards were kept then business would have stalled out. No one wants to keep sending in coins to keep getting back low grade coins.

So now a green sticker by some new guys is supposed to be the end all means to finally say, yes, your coin is good?

 

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No, the sticker is not from "new guys." The sticker is from a guy who helped found both PCGS and NGC - and was NGC's first President - who got sick and tired of what his creations were doing to grading and - yet again - took matters back into his own hands so he could again trust the grades he bought sight unseen from fellow dealers.

 

I didn't know that. Thanks for clearing that up.

Is this why I see the PCGS and NGC price guides list Xx as the price for AB coin but then the market is selling for at least 30-40% below that price with the exception of the older slabs and those with CAC stickers? Although those are still about 15-20% below the guides.

 

If you're selling, yes. If not, are you collecting numbers or coins?

 

My pleasure. That doesn't mean all CAC stickers are righteous - we've all seen what we considered "mistakes" with Green Beans (albeit not many). And the way the TPG's have tightened grading, one would suspect few new slabs to Gold Bean and a far higher percentage to Green Bean, eventually leading to a situation where CAC is not necessary.

Which, in truth, is what I think Albanese wants.

 

If you believe that gradeflation is real, then you shouldn't see the CAC as a sticker scam. The entire point of the CAC is to separate the A & B coins for each grade from the C coins which are devaluing the price of the coins that are solid for the assigned grade. Furthermore, it doesn't really matter what causes gradeflation. Whether you believe that the TPGs deliberately loosen their standards or whether you believe that the subjectivity inherent to the grading process combined with the financial incentive to resubmit PQ coins, the end result is that high end coins for a particular grade are getting upgraded. Every time that happens, the population for the higher grade increases, and the rarity and value for that grade decreases.

So the CAC helps collectors who don't have the requisite experience to handle incremental grading (A, B, & C) make better decisions on which coins to buy. And whether this means that coins without the sticker suffer lower prices and decreased liquidity, or whether coins with the CAC sticker achieve a price premium, the CAC provides a valuable service for higher end coins with significant monetary spreads between grades.

 

I learned something valuable tonight which in the end will save me a lot of money. Much thanks for everyone with their patience and their explanations.

 

The only sticker worth it's adhesive