Why does a CAC sticker increase the value of a coin?

Because not all coins within a grade are equal. Is that coin graded 65 a solid 65, a near miss 66, or an overgraded 64? Now an astute buye with coin in hand can decide. But for the rest of us buying on eBay, or through an auction catalog, or thru an online vendor - the sticker adds confidence to buy the coin, place a bid, or increase a bid.

Personally, I own a few and they are some of my better (for the grade) coins.

 

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Considering how many early bust coins with issues such as cleaning/retoned, tooling, generously graded, etcetera are in top tier slabs - a reasonable premium for a solid (stickered) coin may be justified.

 

I personally feel like if I'm paying PCGS or NGC to grade and slab my coins, I'm not going to pay CAC to sticker them as well. I think the price I pay for a TPG is worth their expertise, so I'm not going to pay CAC to agree or disagree with the TPG. I'm sure not going to pay a premium because someone else decided to have their coin graded twice.

-Cheeks

 

IMHO...for a $100 or $200 coin it is NOT worth a CAC sticker.

CAC came about because certain TPG's grade certain lines of coins "better" than others. Also certain TPG's have had questionable years of grading or grading standards changed over time. CAC helps eliminate these questions of a coin worth several hundreds or thousands of dollars. What's another $40 on a coin worth $2000 to ensure you have a $2,000 coin instead of an $1,100 coin? minimal

A GREEN sticker is SUPPOSED to mean the coin is SOLID for it's grade. Where the confusion lies is when a seller prices/sells a CACed coin well into another grade. I've seen CACed coins, say a MS65, sold for MS66/67 money. This in my mind is complete lunacy on the buyers part.

When someone pays $85 for a coin normally worth $25 because it has a sticker on it...........well you own a $25 coin and a $60 sticker.

 

I think you are 100% correct. Couldn't have said it better myself.

 

This is a fascinating topic and it is brought up on the various coin boards with pretty decent frequency. As a disclaimer, I like the idea of CAC, though I don't think it is needed for an enormous pool of coins, and I have done some work with John Albanese (JA; founder of CAC). However, if you think you can get an honest answer out of me (you can) then you may either learn something or look at a topic from a different perspective.


I've written similar statements to what I am about to write on multiple occasions within the forum, but will repeat again my thoughts on the issue. CAC is a tool that is available to all and, as such, it is quite similar to knowing how to use a loupe; having the knowledge to spot counterfeit pieces; understanding what manipulated and original coinage should look like or how they will likely appear; being able to interpret printed guide prices and auction results; understanding how to grade according to the ANA standards and how this grading differs from the various TPG grading standards; and learning all the options for buying and selling within the market. Sadly, the vast majority of collectors ignore their study of coinage and thus are not truly numismatists. However, some folks pursue this knowledge and will happily listen to other opinions, regardless of whether or not they agree with those opinions. CAC can help all, but will help those who are willing to accept their help the most.

The question of if CAC has value is inherently different from the question about if a coin that has a CAC sticker should cost more than a similar coin without the sticker. In my own business, I have a large percentage of clients who prefer the coins to have CAC stickers, though they are not required. In no instance have I charged more for a coin with a CAC sticker, but I can attest that those coins with CAC stickers on their slabs are, on average, more liquid. The liquidity of CAC evaluated coins is an advantage for me since it allows me to have my inventory change faster than otherwise might happen. This is especially important with thin margins.

One last thing to keep in mind is that CAC is not simply telling someone that they believe the coin is solid for the grade. They also make a market in those coins that are stickered and will, at times, offer bid prices for those coins. Additionally, methods of surface alteration that were not recognized years ago and that allowed boinked coins to make it into legitimate holders can now at times be recognized and these coins generally fail the CAC process. All these factors add value to the hobby-industry even if they do not add value to individual coins on a coin-by-coin basis.

 

The CAC sticker means that the coin is accurately graded and is a A or B coin for the grade. And it means the coin is problem free.

The reason CAC had to come into existance is because of gradeflation and coin doctoring. The reason people pay more for CAC coins is because its a peace of mind that the coin they are getting isnt overgraded or played with. It may not matter for $100 coins, but when you reach 4 and 5 digits, having that little green sticker makes the coin much more liquid. Look at proof gold coins for example. Quite a few have been puttied to enhance their appearance. If you cannot detect putty and spend thousands on a coin, you may be buried. The CAC sticker puts their money where their mouth is and guarantees the coin to be problem free and accurately graded.

 

Damned if you do. Damned if you don't.

Now, what was the original question?

 

Your statement would true if grading was a universal job, which it is not. It's opinion, and different interpretations of grading standards, along with individual grading standards within a grading service.

Who's to say that the original grader's opinion that a coin is 65, is 100% accurate?

 

To play devils advocate here, can't CAC put a sticker on a coin even though it's over graded. Like many have said grading isn't an exact science, so can't whoever looked at the coin from CAC over grade the coin just like the TPG did? I understand that two separate people over grading a coin is less likely but it can still happen. Going back to the original coin I was thinking about purchasing, I feel that it is a bit over graded and it does have a CAC sticker on it.

 

Can you provide us with an image of the coin so we can see for ourselves?

 

The first link is the coin I am talking about. The second link (ebay) is another coin I was looking at with the same grade and it looks way better. I kind of regret not buying it now. Both coins had a very similar asking price. I feel the first coin should grade f12 instead of f15. What do you guys think?

http://www.usrarecoininvestments.com/coins_for_sale/1806-half-eagle-ngc-f15-cac-3849010_4310_d.htm

http://cgi.ebay.com/ws/eBayISAPI.dl...2&ssPageName=ADME:X:RTQ:US:1123#ht_500wt_1182

 

You're really splitting hairs if you're comparing a F12 and F15. I don't know the series well enough but it may be striking issues.

 

This guy sells coins with multiple stickers. This particular NCS slabbed coin has NINE stickers!

http://www.ebay.com/itm/1932-D-Washington-Quarter-Dollar-Silver-Coin-NGC-UNC-SQU116-/320945272629?pt=Coins_US_Individual&hash=item4ab9d43735

 

wow, gotta have it

 

"Improperly cleaned" Rare like this?