The article reminds me of our recent conversation about how "some kinds of wear" are acceptable on Mint State coins... (say the TPGs). http://www.coinweek.com/dealers-companies/eagle-eye/overgrading-affects-coin-values/ Sorry if this is whipping a dead horse for many of you, but it is well-written.
Thanks for the link. It is good article from a well known and respected dealer. I sure hope it makes the rounds.
Yes, it was an interesting article. Thanks for posting the link. For me the initial points are that grade-flation does exist and the market reacts accordingly by pricing the coin, not the slab. After that it's a little muddy. If the market always (i.e. efficiently) reacts accordingly, then the only problem is that the historical records of grades and prices are skewed. Getting valid present and past comparisons of coins sold would not only have to consider monetary inflation, it would have to include an increment of grade inflation as well. A greater concern is if the market does not always act accordingly or at least not consistently. The main danger is to those new to the hobby. They may pay an AU price for an XF coin because that's the grade on the slab. Another concern is the perceived need to have coins regraded every few years to try for a higher grade. If the coin does get a higher grade, the owner is better off with regard to its value. If judged by experienced collectors or dealers, its value may not change, but if sold to a newcomer, a higher price may be received. Of course, the owner is out the cost of regrading, which adds to the gross income of the grading company. There is limit to how far grade inflation can go (unlike monetary inflation). Even with a subjective process of ranking, there comes a "no way" point. Cal
If the market is pricing coins down, then the market must also be grading the coins to bid the prices it's willing to pay. So the market, 30 years later, is fixing what TPG's said they were going to fix. What's next "reform?"
Makes you wonder, doesn't it? How about "regulation?" ...but there's no regulating authority, is there? I think we may be witness to the disadvantages of "the business model," particularly in regard to its ability to keep standards under control.
I liked the beginning and what he said about the grading companies looking for more submissions. Then he started talking about an 1877 coin but I didn't see the pictures of the two coins anywhere. Kinda got lost after that. The gist was pretty simple: buy the coin and not just what the slab tells you. He also didn't fail to mention his different business projects like his sticker, as I'd expect a dealer to do. He tries but fails in my opinion to take some specific concerns and say they apply to us all. I'll keep collecting mainly world coins and what US coins I can afford and not worry about the 2-4k coins
