Could a grading company start up today to rival the Big 3?

Would it be possible in the near future for a new grading company to spring up, and for it rival NGC, Anacs or PCGS?

 

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anything is possible but its gonna take alot of time

 

I think for anyone to take them seriously they would need A) a ton of capital to back up what they put on a holder and B) some heavy hitters in the numismatic community that not only know what they are talking about but have respected opinions as well.

I do not see this happening in the near future. The only thing that might happen is for a specialist to start something similar in a very specialized field. Similar to what Richard snow has done with his eagle eye stickers on copper.

 

If the David Lawrence Rare Coin group couldn't succeed with DGS (Dominion Grading Service) and a complete stock of holders left over from PCI, I think it will be very difficult for anyone to pull it off. DGS was in business from April 2008 to August 2010. I never saw one of their graded coins but they had a reputation for being very conservative. FWIW, I think you should change this thread to the big 2, ANACS is not at the same level of PCGS or NGC.

 

No.

 

NO. The others (PCGS and NGC) have years of credibility.

 

Anything is possible if there is enough money behind it. Not easy but possible. It would take years for it to turn a profit and they would have to come up with some value that is not offered by the current big boys.

 

Actually, with enough financial backing, a rival could be established in as little as two years. But...............it takes cash!

Look at CAC. While they do not slab coins they do "grade" them in a manner of speaking. A Green Bean means that the CAC Team "agrees" with the assigned grade while a Gold Bean means that the CAC Team "grades" the coin higher than that assigned on the slab.

CAC needed to raise 25 million before they ever opened their doors and I expect that a rival TPG moght have to raise double that amount or at least have financial credit for that amount. The reason I say this is because of the "grade guarantee" offered by the top TPG's which in essence, is what gives them credibility.

We all have disagreed with an assigned grade at one time or another but to the "owner" of the coin, whether the original submitter or not, sthey can always submit the piece back to the TPG for the "grade guarantee" which guarantee's the current owner fair market value "if" the coin does not meet grade. This is one of the reasons that PCGS stopped handing out MS70's for Silver Eagles as they got left on the hook when a good portionof them developed milk spots and as such, lost the MS70 status. At the time, NGC literally raked in millions because submitters wanted that MS70 grade! PCGS finally decided that the profits outweighed the risks and resumed grading MS79 Silver Eagles.

Such an undetaking takes money AND a "reputable", widely known, and respected grading staff. Ex PCGS Graders and ex NGC Graders "might" be persuaded to help start uo such a company but again, it would take salary guarantee that cover many years.

Can it be done? Sure. Will it be done? Possibly. If the "mob" ever decides to turn its back on PCGS or NGC due to some publicity nightmare such as collusion or outright provable fraud, then the market "could" collapse thereby opening the door for a serious competitor.

Does anybody remember ACG? At one tie, they were THE company to use until the perception of favoritism and overgrading clouded the publics perception of the company's integrity. It was a very quick downhill slide.

 

DLRC had a HUGE problem in that they also own, sell coins AND run an Auction House. A business CANNOT serve two masters since the cloud of collusion will always float above their heads.

I think this is the reason that DGS failed. People simply could not take them seriously.

Again, I point you back to CAC which is now a readily acceptable company which offers "opinions" of TPG "opinions".

 

Credibility or "Acceptability"?

Ever disagree with a PCGS or NGC Grade? PCGS certainly does. NGC does as well.

 

Sure, why not?

 

I used their services and found the the be very very conservative most of which I've had reholdered and sold. I will say when I sent them in to PCGS the always upgraded. Here's a couple I still have

 

The problem with the basement graders isn't that they're small, but that they hand out inflated grades. Give me a small grader that can properly authenticate coins and assign reasonably accurate grades, and I'll have as much respect for them as PCGS and NGC. The lower tier TPG's like ICG get a bad rep when, for instance, you constantly see coins graded a level or two above their obvious state, or they have extremely high pops of MS70 and PR70 coins. I mean, seriously...

 

I can't wait for coin collectors to get back to reality and learn to grade their own coins. TPG's are merely another opinion that quite frankly doesn't matter much if you are truly knowledgeable.

 

Does David Hall grade and slab coins?

 

I think it's possible but it would take several of the best names in the business, joined together, to even have a chance. Those same names would probably see it as a money pit and as a conflict of interest, based on what they are doing now. It's a tough road that few would care to try.

With that said, I actually think I could make it happen
Rough math, I'm needing about $800,000,000 in start up money. I'm sure I could do it with that amount. Just checked my wallet, I'm only short $799,999,700.

 

David Hall was not the only founding member of PCGS and each of the other members also were in the coin business. However, I don;t believe that any of them were running an Auction House.

Additionally, PCGS was not an overnight success as it took many years for them to be accepted by the coin business. There was lots of controversy and a lot of whining.

 

David Hall Rare Coins buys and sells PCGS plastic but does not submit coins for PCGS grading according to published statements by David Hall himself.

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