Why do we pay more money for PCGS Slabbed over ANACS and NGC?

Is there a difference in grading standards? I know there are reputable people on CT who have worked for other grading services besides PCGS. Is this a name brand type thing, or marketing deal? I am just curious. Also, if PCGS brings higher premiums why do people get problem free coins slabbed ANACS and NGC? Are there niche markets in coins where ANACS or NGC graded slabs are actually prefered, or bring higher premiums? I know I ask a lot of questions on CT, but I am trying to learn as much about the coin business as possible.

 

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Its not always true. PCGS is stricter on some coins, NGC on others. Very knowledgable collectors and dealers know which is which, and will pay accordingly. Its very much a "knowledge equals money" type of situation. I am sure some collectors here can detail how their particular series rate, as I have seen posts discussing this before.

Overall, all grades equal, PCGS and NGC I find are close on market pricing of their slabs.

 

It is generally thought that PCGS and NGC are the top tier when it comes to grading. The next tier would be ANACS and IGC. As stated though, their standards differ between coins and thats one thing you should know if you're collecting certain coins. I have examples of all 4 in my collection. That being said, always buy the coin and not the holder.

 

It is because of 2 primary reasons: 1) for some people, perception is the only reality and 2) you can fool some of the people all of the time.

 

HELLO! I alway wonder, when you buy a PCGS ANACS NGC slabs for private sellers. Is it possible, that the coin coin be changed out? If so, how can you tell, when a person like myself do not how to grade properly. Would there be any evidence on the slab like cracks on the edge? Would there be glue used from the Gradeing Companies, after they slabbed the coin. I hope I'm not asking to many question at once. sarah

 

Sarah, yes there would be telltale signs of damage along the edge. Best solution? Learn how to grade yourself. It just takes some time, but all collectors should know how. Buy yourself a grading book, and practice practice practice.

Chris

 

It depends on the series, and overall it's usually a pretty small numerical difference like 1 point (but, that can make a big difference in higher grades). One series that comes to mind is Jefferson nickels, I believe it's usually recognized that PCGS grades a little tougher than NGC (by about a point), but NGC is tougher with the FS designation. Imo, with Morgans, the standards are virtually identical. For modern coins, this is where a big misconception comes into play. There was a time when PCGS was very strict when it came to giving MS/PF 70 grades to modern coins. But, that has changed recently, and they are much more lenient. Just look at the % of 69 v. 70 grades from the 25th ASE sets, I believe both NGC and PCGS had actually given out more 70's than 69's.

Most likely a combination of the two. One thing PCGS has done is only allow PCGS coins in the PCGS registry. So, if you want to start a PCGS registry, basically, you can only use PCGS coins. NGC on the other hand allows PCGS coins in their registry.

They don't always bring high premiums, and in many cases the difference in price can be fairly small. There are also people who simply prefer NGC or ANACS solely on personal reasons. There is one niche market I know of with ANACS, and that has to do with VAMs. There are a lot of VAM collectors that prefer ANACS because they feel ANACS is the most accurate when it comes to identifying VAMs. Also, ANACS recognizes more VAMS than PCGS or NGC.

So, if someone want's to only buy PCGS, NGC, or ANACS coins, that perfectly fine, and may even make sense, depending on the coins they focus on. But what I don't understand is how some people just have a blind allegiance to one company. (Not directing that at anyone in this thread, just in general).

Another thing just to point out, from a financial stand point. Hypothetically, if you only buy PCGS coins because they bring a premium over NGC, sure you may get more money when you sell, but you also had to pay that premium to begin with, so where's the benefit? I'll pay a premium for a coin if I like it, but I sure as **** won't pay a premium because a certain company graded it.

 

For me, it's all about aesthetics. I just like the look of PCGS slabs more. I will go for an NGC coin if I really like it or if I think it's a good deal.

 

Populations, registry and strength of dealer network are the big factors that drive the price differences. For some series, some grades PCGS is stricter and the pops are strong evidence of that. For a very few select series in a few grades NGC is stricter, and the pops and auction prices are evidence of that. For a good many coins at a good many grades, there isn't that much difference. Collectors need to research the particular coins they tend to buy. For the other grading companies, the gulf tends to be wider, especially if trying to sell to a dealer. Dealers may ask about the same price for coins in various holders, but tend to offer much lower on coins in certain holders. There are reasons for that, and it isn't about kool-aid or fooling people, it is about the realities of supply and demand.

 

I can only speak for Modern Coins but I believe that each of the TPG's has something different to offer.

ANACS offers Variety Attribution and being the perfectionist OCD Nerds that we can sometimes be, a slabbed set should be of all the same slab type.

NGC appears to have a little bit looser standards for Modern Coins. I refer specifically to Eisenhower Dollars and Kennedy Half Dollar which is my main focus. I've seen NGC coins graded where it just barely makes the grade but then this is not really a fair assessment since I've seen similar PCGS coins. All in all though on 'average', NGC appears to be a bit looser for Modern Coins. Unless you're really, really good in the grading arena, expect a 1 point down grade from NGC to PCGS.

PCGS offers exclusivity meaning that ANY PCGS Graded coin can go into a PCGS Registry Set and the competition for that 1st place position can be financially brutal! NGC on the other hand, accepts both PCGS and NGC coins into their registry. Both services offer similar registry awards and benefits.

I'm of the opinion that folks who regularly submit coins for TPG grading usually choose the grading service which will assign the grade the submitter feels the coins is AND will offer the most bang for the grading dollars. This is not to say that one service is better than the other since it is a "buy the coin and not the slab" world for some but the other half of the world prefers one specific TPG over the other regardless. In other words, someone thats heavily invested in NGC Slabs will have a tendency to ONLY shop NGC. Folks who are heavily envested in PCGS Slabs will only shop PCGS.

As it sits right now, for Modern Coins, PCGS definitely brings more money in the resale arena than NGC or ANACS.

Even with Variety Attribution, ANACS resale prices can be brutal toward the low end since ANACS diesn't always get it right. But then, neither does PCGS or NGC as all have made similar attribution boo-boo's. It all falls into a "preference" thing.

So, in a nutshell, folks simply have a preference for which TPG they prefer and as such will defend that TPG most vigorously.

I've used all three but only for specific coins for specific reasons. Of the three, I was really impressed with NGC's Customer Service. It was almost as if those folks "knew" me and I really liked that! PCGS's customer service is really good but I've never hung up the phone feeling like I've just spoken with someone the really cared about ME. I've only ever dealt with Paul DeFelice for ANACS so I can't rerally offer anything constructive.

 

there lies the problem. new collectors (maybe not the ones on here, but in general...) are lazy and don't want to learn how to grade. they want it done for them. pcgs has the best "street-rep" so far.

 

That's a typical problem with new recruits entering most fields. Why learn to use a sextant when you have GPS to navigate by, or setting circles on a telescope when you have computerized "Go To" available, or even a Road Atlas when you have Map Quest? People will always take the fastest and easiest way to accomplish something. It's the golden rule of saving time and effort. IMHO.

 

oh yeah!!!!

 

iI'M THIRSTY ! BUY A COIN not the HOLDER....Love your pitcher of Fruit Punch..

 

Thanks Doug. I just find it interesting that we can be so blind as to a slab. I am a prime example of this. I would have never bought that bust half AU-53, from a previous thread..at the price I did unless it was PCGS slabbed. As it turned out, I grossly overpaid, and you along with other experts even pointed out that it had been dipped. Excuse me "properly restored." After receiving the half in the mail, and doing research it is clear that the half was dipped. For crying out loud there is a black eyeball. For all of their greatness they slabbed this one problem free? As far as realized prices, I have been studying them. In looking through realized prices of HA it is clear that there is a disparity between what someone will pay for a coin that is not graded by PCGS. At least with Bust halves, and barbers from what I can see. Are these graders from NGC and ANACS not supposed to be experts? Clearly they are. Maybe I could make a wise investment by purchasing NGC and ANACS problem free, cracking them out of their slabs, and sending them into PCGS to get slabbed. I am not so much disturbed by what I am seeing, as I am intrigued. I appreciate learning from you all.

 

Be careful trying to play the "Crack out" game. There are many a collector who has lost their behinds by trying to play that game. It is not uncommon for a coin graded by NGC or PCGS to come back as ungradable by the other service (because of cleaning, dipping, color oddities, etc). I have heard even of many coins which were "Cracked out" and resent to the same grading company and they come back as such. Doug can probably back this up with things he has seen over the years also.

If you're not playing the PCGS Registry game, then why does it matter which piece of plastic it is in?

Regards,
-Brandon

 

Why do we pay more money for PCGS Slabbed over ANACS and NGC?

Simple fact is we pay more because they sell for more.

 

:devil: And just to be a jerk like I am, I would like to remind everyone that yes, the TPG set the grades, and these grades have NOTHING to do with ANA grades, the hobbies historical grading, etc. The TPG set the grades, and then their guarantee is that it fits whatever grade they think it is. Cool huh? Chris' slabbing service can call a coin a MS69 all day long, and if anyone disagree I simply tell them that THAT is Chris' definition of a MS69! Nothing to claim, since the grade I said it is, I get to set that definition of!

So, the question is, what kind of guarantee of grade IS a TPG providing? Guaranteeing that they will agree with themselves?

This is why I simply feel TPG grades are meaningless. I respect their guarantee of authenticity, that is worth something and they do a pretty good job of it. That is really all you are getting for your slabbing dollar to me.

Chris