CAC question

OK, if I understand it, getting CAC approval means that, at worst, the other TPG got it right or under-graded a coin. This suggests to that the graders at CAC are considered more accurate than the other TPGs. What I don't understand is why CAC doesn't just grade the coins themselves. It seems to me that they would immediately jump to the top of the TPG heap. What am I missing here?

 

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CAC is first and foremost a company that gets to identify coins that they themselves are willing to make a market in on one of their coin exchanges. The fees paid by submitters to CAC for their little sticker don't even cover CAC's cost to handle the coins. CAC makes their money by buying and selling coins, like any other dealer -- not by "grading" coins. Don't forget that little tidbit -- CAC is a dealer and market maker.

They are not a TPG -- and they don't grade coins, per se. CAC either passes or fails a coin based on their opinion that it is strong for the numerical grade on the slab (or not). The application of a little green "approval" sticker to someone else's product is NOT the same as assigning a grade to a raw coin in the first place.

And, there are numerous examples of CAC applying their little green sticker, a coin being cracked out and resubmitted -- upgrading even by 1-2 points at NGC or PCGS, and then CAC applies their little green sticker again. So, they agree that the coin was strong (but properly graded) as an MS63, and then they agree that it was strong (but properly graded) as an MS64. This is inconsistent.

TPGs and CAC are not infallible, and they are prone to change their subjective opinions of a coin from one view to the next. In effect, the good-ole-days of simply grading coins as either MS60, MS63, MS65, and MS67 would probably suffice today -- as the consistency and ability of TPGs to truly differentiage between an MS64 and MS65 for a lot of coins is just random. Add in the TPGs new "+" (plus) system, and it's almost laughable.

Cheers.

 

On a side note.

While most know, many do not, John Albanese is the founder of CAC as well as NGC and PCGS.

 

Furthermore, it virtually guarantees that eventually every slabbed or beaned coin will be overgraded.

1. If it's undergraded, sooner or later someone will resubmit it to get a fair grade.

2. If it's graded fairly, sooner or later someone will resubmit it on the chance that it will get a bump up or a bean. Since grading is inconsistent, sooner or later, some grader will bump it up.

The process only stops once the coin is bumped up to such a high grade and/or sticker that nobody believes it could get bumped again -- in other words, until it's overgraded.

I'm sure there are some who will disagree with this, but I'm not sure who could disagree with point 1, and I'm pretty confident on point 2 as well. If those two statements are true, the conclusion seems inevitable.

 

Doesn't a sticker mean CAC approval? And, in that case, isn't quarter-back's statement correct?

 

To quote Southpark "I learned something today"

 

You almost have to admire being able to make a business out of issuing opinions about other companies' opinions. Almost. (Although as has been pointed out, CAC is not a third-party grader; they're not a third party for one, and not really a grader for another.)

The sticker is basically just CAC saying "Yeah, we'd buy that, if someone wanted to sell it to us."

Personally I think it's highly overrated. Even more than slabs themselves. If the coin is fairly graded, looking at the coin should be enough to tell you that. If you can neither grade the coin yourself nor have trust in the TPG? CAC is not going to help you.

But hey, I'd love to get in on this game. Send me your CAC-stickered slabs and for $10 I'll put a smiley-face sticker on it if I think it is really good. That should up the value of the coin for sure!

 

Amen!! I've bought a lot of good raw coins over the years many being stuff stored in drawers jewelry boxes etc for years in other words estate fresh Unless there's scratches of other pmd from circulation they almost always grade well. I've been slowly converting then to slabs and am always on the lookout for more. Being a major dealer of early American furniture who also buys and loves coins can be a real bonus at times

 

You forgot the part about having the financial wherewithal to properly run the business and to purchase all these coins with no real notice while already having in place a rock solid reputation for grading, knowledge, financial security and integrity.

Other than that, you're there.

 

Easy solution. I'll only take coins that already have the jelly bean. I'll lower my examination price to $4.00 also.