Why is it that 2 coins : 1 graded by NGC (Proof 70 UC) and 1 graded by PCGS (Proof 70 DC) are supposed to be the same quality and yet I see the PCGS coin sell for multiple times more than the NGC coin? Is there a difference between Ultra Cameo and Deep Cameo? What am I missing?
Well the differnce is that PCGS is better marketed. The breakdown of grading services as it stands today is 1. PCGS 2. NGC 3. Anacs 4. IGC Now this is because of popular beliefs in a particular service. Personally, I like NGC. They seem to have a more strict grading policy. All these services change their standards on a pretty regular basis. So what is good today may not be tomorrow. There is no difference in Ultra Cameo and Deep Cameo other than different services using different names.
The biggest reason for the huge differences in prices that a coin in one slab brings over another is the publics perception of how that particular grading company grades coins. The key word here is perception. But there are other reasons as well. AGC was the first grading company as we know them today, but the marketplace did not accept them. PCGS was the first widely recognized and accepted grading company. Then NGC came along 3 yrs later. And as often happens - the newcomer struggles to to become accepted. NGC was started by PCGS employees - and partly because of this the public had the perception that PCGS was better because they were the first. PCGS also quickly moved into slabbing the modern coins - NGC would not do this for many years. In fact NGC has only slabbed modern coins for the past 2 or 3 years. This also caused the public and the larger portion of collectors, who collect only modern coins, to favor PCGS. The other primary reason for the disparity of prices is not so much marketing or advertising in my opinion, but word of mouth. The collecting community is a very tight knit group. And when one collector who is friends with another recommends one grading company over another - the friend tends to listen. It doesn't matter if what the one doing the recommending says is true or not - the other guy trusts his friend and that is enough. You see - as has already been mentioned - many collectors have the perception that PCGS has the toughest grading standards. This is simply not true. They are tougher than some of the grading companies - but certainly not all of them.A close examination of the standards will show anyone that. But for those who actually take the time to find all this out - an opportunity is presented. That being you can purchase a coin in another grading companies slab that is every bit equal and sometimes better than one in a PCGS slab - for less money. But as a general rule - the public does not recognize this. Their friend Joe says PCGS is better and worth more - so it simply must be so.
Thanks for all of your feedback. I thought that was the case - it just amazes me. I always look for value for the money paid in anything I do, that is why it baffled me. I am relatively new to the collecting community so I appreciate the input from those more experienced. I do need to investigate the standards more closely and I never thought about it from the buying end - it can be quite the opportunity. Thanks again!
Well therein lies another issue. The two most widely accepted grading standards are the ANA and photograde. Both have books available with photos, and great descriptions. Here is the biggest issue. NO grading service today uses these standards. Most have a system that is loosely based on them, but that is about it. It takes a lot of practice to learn grading. The easiest way that I can tell you, is buy a grading book, (one of the ones mentioned) and pick a series to start with. ie: Morgan Dollars, Walking Liberty Halves, or whatever you like. Then learn what makes the coin series grade. Look at where on this coin wears the quickest. Then go to a coin show or shop and look at both raw and slabbed coins in this series. Look at as many coins as possible. This and time will help you the most. Take into consideration that each mint and year will grade differently. Yes, I know it is a lot of information, and tough to learn. That is why there are so few people who can do this with great success. If you are patient and careful in your study, this is a task that can be learned and enjoyed.
An additional comment - it is also wise to learn how the different grading companies grade as well. Couple this knowledge with your own grading knowledge and you will have a much better understanding of todays coin market. It is almost essential when it comes to values or knowing what is worth what. It should also be noted that even the standards used by the ANA have changed over the years. So if you are going to use the ANA Grading Standards - the end result will depend on which edition you are using.
