Is a Gold CAC Stacker Really Worth that Much?

I was checking the PCGS retail price guide for a 1901 Morgan dollar, and looking through the past auction prices for an MS-60. My jaw dropped when I saw that one had recently sold for $36,000 at a Heritage Auction in May 2022. See extract from PCGS retail price guide below to see the disparity in other MS-60 sold prices for same coin.

So, i went to the Heritage Auction page for that sale, expecting to see a toned monster that might justify such a disparate price. Nope. Only distinction with the coin was that it was in a PCGS OGH and had a Gold CAC Sticker. Is the Gold CAC Sticker, combined with some possible stupidity or lack of self control, the cause for the exorbitant bid sale? Oy Vey.





https://coins.ha.com/itm/morgan-dol...4-4431.s?ic4=ListView-ShortDescription-071515

 

Log in or Sign up to hide this ad.

One word, Crazy!!

 

Continuation of OP:

In all fairness, I guess I should have included the PCGS Retail Price Guide values for a 1901 Morgan Dollar in MS-61 and MS-62 grade (see below), since the sold coin had a Gold CAC Sticker. The sold price was still so way out of whack even if you considered it as a MS-61 or 62 grade coin, which the Gold CAC sticker would have you believe.

 

Yeh, like beaucoup crazy, lol. I'm thinking maybe the bidder made a typo in placing his/her bid? But I would think the bidder would have caught the mistake and immediately notified Heritage Auctions to rescind the erroneous bid and then place a corrected bid?? Mystery to me.

 

Took at least two crazy bidders to get it that high because of the incremental process of bid increases that Heritage has. Bidders with lots of moolah were determined to be the winner. Ego took over, and a sense of value was left behind.

Cal

 

Yep, you're right. It took 2 to tango (or battle tango) to get to that crazy number.

 

"Justify?" and "Worth that much?" are two different questions. CAC stickers aren't worth anything to me (regardless of color), but they sure do seem to affect the prices!

 

There are collectors and, probably coin investors, who think that the CAC sticker is an iron clad guarantee that any piece which has it is properly graded. That is a reasonable assumption probably 97+% of the time. Some CAC approved coins don’t meet my expectations for good eye appeal, and CAC can make mistakes, but you can risk your reputation for saying that. I know from experience.

There is supposed to be a group of dealers who will buy CAC approved coins with no hassle. The key question is, how much will they pay?

The gold CAC sticker is given to coins that are superior for the assigned grade or under graded. CAC rarely gives it out. Among some CAC cultists, it is the holy grail. They will pay prices that are higher than the next grade up for these coins and sometimes well beyond that. To me, that’s crazy, but each to their own.

This auction result appears to be a reflection of a bidding war between two or more CAC cultists. The coin in question appears to have what could be a rubber band burn in the reverse. I’m sure that’s why PCGS gave it the unusual MS-60 grade. Aside from that, the coin is better than an MS-60, but like most 1901 dollars, the coin has subdued, indifferent luster. Without the burn, the coin might grade MS-62.

For many collectors, that defeat on the reverse is a big deal. That’s why I think that the price paid was whacky.

 

It looks like at least 2 bidders recognized that it is the 1901 double die reverse. Still no real steal of a cherry pick since they ran it up on each other but in January a 61 went for 43K.

 

Thank you. Mystery solved. That at least explains the disparate difference in price. It's great that Heritage Auctions provides an archive of high quality photos of coins sold at its auction. It was pretty easy to see the DDR once you pointed that out. Definitely a VAM-3. Surprised that neither the consignor nor Heritage caught that to include in the lot description.

There was a 1901 VAM-3 DDR "Shifted Eagle" Morgan, PCGS MS-62, sold by Stack's Bowers in 2018 for an auction record of $72,000. Link: https://www.pcgs.com/auctionprices/item/1901-1-vam-3-shifted-eagle-ddr/7302/6992751672834573427

 

Good catch!

I think that Heritage focuses on selling slabbed coins (even ancients) so that they can feel as though they don't have to catch things (work is already done). Not knocking them, passing the liability for grading and attribution off to somebody else is a sensible business model.

I'm more surprised that neither PCGS nor CAC seem to have caught it. Or.... maybe CAC did catch it and the gold sticker was meant to represent the misattribution.... who knows!

 

It’s called “ Got caught up in the auction” syndrome. It happens a lot.

 

My personal feeling ( although it is of no significance to the coin world) is that they are paying for ego support. They should have used some of the money for a psychiatrist rather than a coin, DDR or not.

 

Yeh, forgot that CAC also had eyes on the coin, smh. I've seen Heritage Auctions, in their lot descriptions, question whether the grade given by PCGS or NGC was considered a lowball grade compared to the attractiveness and condition of the coin, and even mention that a coin appeared to be a variety notwithstanding the grading company missing (or not being paid/asked by coin owner to give) a variety attribution. Understandably so, as Heritage receives come profit benefit for a higher sale price of the coin.

 

CAC won't check for a variety (or error) that is not on the slab since they are looking at the grade. PCGS won't check for a variety (or error) unless the submitter pays for it (outside of a few big ones that are automatic). Heritage might point it out if the consignor tells them and it is significant enough (this example seems like no one noticed besides the bidders).

 

As far as premiums, gold stickers have always had a premium. At one point the premium was more modest (average of 1-2 points above the assigned grade) but from 2020 to now those premiums have increased (there seems to be some easing lately but levels are still above pre-2020 pricing).

 

Fortunate for the consignor that at least 2 bidders noticed. Imagine if only 1 had noticed, and the consignor subsequently realized that what he consigned/sold was the DDR variety for the non-variety price.

 

It was fortunate indeed.
If only one bidder had noticed and it ended closer to MS 61/62 auction results (like we would expect for a typical gold cac), the consignor might have never known (outside of seeing the same coin later slabbed with the variety on it or offered by a dealer who mentioned it in the listing).

 

The gold CAC sticker indicates JA / CAC opinion coin undergraded. I know of one instance where coin sent in for upgrading and graded 2 grades higher than original grade. Guy banked big money. Went from about $1500 coin to a $10,000 coin. So on big ticket coins one can score big time. Hence the aggressive bidding for gold sticker coins.

 

Chances are that the consignor originally bought it as the normal variety so he would have lost nothing.