I believe I read somewhere that prior to the formation of PCGS that ANACS was actually certifying coins and operating as a third party grading system. Could anyone inform me of the history behind this? What happend to ANACS? It was my understanding that they graded the coins on both Obverse and Reverse such as 40/30. Did the people from ANACS leave to help form PCGS or were they independant of each other?
Third Party Grading start here! Accugrade Start 1984, followed by PCGS 1986 after owner paid 100,000.00 US dollar to Mr. Alan Hager for his expertise and his Patent. Then NGC start 1987.
We've talked about it a bunch of times. And yes, ANACS was in business before PCGS. And yes they did what they called Photo Certificates where they grade the coin and gave you a picture of the coin. But there's more to it than that. But even ANACS was not the first company to put coins in a plastic slab. ACG was the first company who did that, but not the first company to grade coins. ANACS was originally owned and run by the ANA. Then they sold the company to Amos. Then they sold the company to Anderson Press. Then it was sold to James Taylor, current owner. Not sure exactly what you want to know.
I guess I just wanted clarification on weather PCGS actually innovated the industry or there was some major venture capitalism going on. Just curious as to why PCGS stuck while others didn't?
Well when someone ask the question of who was the first TPG, it depends on what you mean. For example, do they have to have slabbed the coins ? Or did they just grade the coins ? Understand the difference ? ANACS was the first company to grade coins. But they did not slab them, as I said. They started grading coins in 1972. Long before ACG or PCGS. But there was supposedly some company, nobody knows the name, out west that started grading coins even before that. The reason PCGS took off was mainly advertising, and they were good at it. David Hall was good at talking the talk. There was a ton of stuff going on back then. And it all seemed to come together at the same time. ANA grading standards changed in '86. PCGS opened it's doors in '86. The coin market was going up and David Hall screamed it would go higher. NGC opened in '87. Both of these companies were filling a need. Yeah ANACS already existed, but they couldn't keep up. And they didn't advertise and promote coins the way PCGS and NGC did. Yeah ACG was the first company with plastic slabs, but they over-graded everything and everybody knew it. So when PCGS and NGC came out - they took off. Public loved 'em. 'Course they didn't care for 'em much 3 years later when the coin market blew up. But by then they were entrenched. Slabs were here to stay.
I just know that ANACS is still in the forefront of the industry by acknowledging and grading with certification errors and varieties that neither PCGS no NGC do. If you have a recently discovered one, submitting to anyone but ANACS is a waste of money. I do not believe that anyone except ANACS certifies "discovery" pieces either. Just sayin'
Small correction to what Doug had to say. ANACS started authenticating in 1972 not grading. Grading did not begin until 1979. And they were not the first, they were beat by about a month by INS. There were actually about five or six grading services before PCGS but ACG was the only US company doing slabs. (There was actually a currency grading service that used a sealed holder in the early 70's, Hallmark Currency Grading Service, no connection to the other two companies named Hallmark that came later. The very first company that I have been able to trace that graded and encapsulated was a South African company in 1975, SAGCE. A very strange company that used a 105 point grading scale and only graded proof Krugerrands.) Probably the reason PCGS took off and have stayed on top was the reputations of the top dealers that banded together to form the company. Add to that the financial power a for the advertising like Doug mentioned plus the fact that they had a year and a half of no real serious competition before NGC came along allowed them to develop a following and consolidate their market position. This meant that although they were a solid well backed company, they have had to play catch-up ever since. Even though NGC has created many of the innovations in the TPG's since then, somehow PCGS manages to maintain the image that THEY are the innovators. Once again probably through advertising and self promotion.
