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<p>[QUOTE="Lehigh96, post: 2111525, member: 15309"]Doug, the article that you read is basically wrong. The purpose of the CAC sticker is to combat the problem of gradeflation. Everytime the TPGs grade a coin that is low end for the assigned grade, it increases the population for that grade and essentially lowers the value for the previously graded coins which were solid or high end for the assigned grade. If there is a difference in quality between coins that all bear the same grade, then it only stands to reason that there would exist a price range as well. Lower quality coins would get lower prices and the higher quality coins would demand higher prices.</p><p><br /></p><p>The only way to refute this concept is to declare that incremental grading is bs and nobody can tell the difference between a low end and high end coin for an assigned grade. But if that were the case, then why does everyone constantly complain about overgrading?</p><p><br /></p><p>The problem is the way that coins are priced. We look at coin and then we look at a price guide and we see the number. Then we say that if we payed less than that number, we got a good deal, and if we paid more, we overpaid. The truth is that there is not one number that defines the price for 99% of the coins. In order to accurately state the value of a coin in a particular grade, we should use a grade range. This range can be in the hundreds or thousands of dollars depending upon the rarity of the coin in question. So, for an article to say that a CAC sticker can't have an affect on the price of a coin, is utterly ridiculous IMO. CAC stickers can, and do affect the valuation of a coin. Now that does not mean that a CAC sticker automatically increases value, but it absolutely can affect the price in certain cases.[/QUOTE]</p><p><br /></p>
[QUOTE="Lehigh96, post: 2111525, member: 15309"]Doug, the article that you read is basically wrong. The purpose of the CAC sticker is to combat the problem of gradeflation. Everytime the TPGs grade a coin that is low end for the assigned grade, it increases the population for that grade and essentially lowers the value for the previously graded coins which were solid or high end for the assigned grade. If there is a difference in quality between coins that all bear the same grade, then it only stands to reason that there would exist a price range as well. Lower quality coins would get lower prices and the higher quality coins would demand higher prices. The only way to refute this concept is to declare that incremental grading is bs and nobody can tell the difference between a low end and high end coin for an assigned grade. But if that were the case, then why does everyone constantly complain about overgrading? The problem is the way that coins are priced. We look at coin and then we look at a price guide and we see the number. Then we say that if we payed less than that number, we got a good deal, and if we paid more, we overpaid. The truth is that there is not one number that defines the price for 99% of the coins. In order to accurately state the value of a coin in a particular grade, we should use a grade range. This range can be in the hundreds or thousands of dollars depending upon the rarity of the coin in question. So, for an article to say that a CAC sticker can't have an affect on the price of a coin, is utterly ridiculous IMO. CAC stickers can, and do affect the valuation of a coin. Now that does not mean that a CAC sticker automatically increases value, but it absolutely can affect the price in certain cases.[/QUOTE]
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