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<p>[QUOTE="Lehigh96, post: 527061, member: 15309"]Ben,</p><p><br /></p><p>I think your logic is flawed because of your perspective. The fact is that the TPG's do not have a vested interest in the final grade other than that the grade is accurate and consistent with their standards. They collect the same fee whether the coin grades 64, 65, or 66.</p><p><br /></p><p>Let us look at what they do have a vested interest in, maximizing submissions. You seem to think this means all they have to do is give grades that make their customers (submitters--dealers) happy. It is not that simple. A TPG can easily take that approach like ICG and the result is that the coins are consistently overgraded. The submitters would be initially happy because their coins came back with very high grades allowing them to charge high prices for the coins. Unfortunately there is another group of people that must be taken into consideration, the consumers (collectors). If a TPG overgrades, the consumer base will lose confidence in the grading company and either stop buying those slabbed coins or consider every coin encapsulated by that company to be overgraded and pay accordingly. The TPG's must balance these two factors very carefully. If they overgrade and please only the dealers, they lose. If they undergrade, the dealers will take their business elsewhere, again, they lose. The only way to please both sides is to grade all of the submitted coins accurately on a consistent basis. <b>Grading coins accurately on a consistent basis is how you maximize submissions.</b> Both PCGS and NGC have been very successful in grading coins accurately on a consistent basis which explains there market share of the TPG industry.</p><p><br /></p><p>If you are claiming that the TPG's assign grades using quotas, I will have to ask for some kind of evidence to substantiate that claim. If you are claiming that there is insider tampering to make large submitters happy, again, I will have to ask for some kind of evidence to substantiate that claim. Furthermore, if these two claims are really common knowledge, why doesn't anyone on this coin forum know that!</p><p><br /></p><p>Paul[/QUOTE]</p><p><br /></p>
[QUOTE="Lehigh96, post: 527061, member: 15309"]Ben, I think your logic is flawed because of your perspective. The fact is that the TPG's do not have a vested interest in the final grade other than that the grade is accurate and consistent with their standards. They collect the same fee whether the coin grades 64, 65, or 66. Let us look at what they do have a vested interest in, maximizing submissions. You seem to think this means all they have to do is give grades that make their customers (submitters--dealers) happy. It is not that simple. A TPG can easily take that approach like ICG and the result is that the coins are consistently overgraded. The submitters would be initially happy because their coins came back with very high grades allowing them to charge high prices for the coins. Unfortunately there is another group of people that must be taken into consideration, the consumers (collectors). If a TPG overgrades, the consumer base will lose confidence in the grading company and either stop buying those slabbed coins or consider every coin encapsulated by that company to be overgraded and pay accordingly. The TPG's must balance these two factors very carefully. If they overgrade and please only the dealers, they lose. If they undergrade, the dealers will take their business elsewhere, again, they lose. The only way to please both sides is to grade all of the submitted coins accurately on a consistent basis. [B]Grading coins accurately on a consistent basis is how you maximize submissions.[/B] Both PCGS and NGC have been very successful in grading coins accurately on a consistent basis which explains there market share of the TPG industry. If you are claiming that the TPG's assign grades using quotas, I will have to ask for some kind of evidence to substantiate that claim. If you are claiming that there is insider tampering to make large submitters happy, again, I will have to ask for some kind of evidence to substantiate that claim. Furthermore, if these two claims are really common knowledge, why doesn't anyone on this coin forum know that! Paul[/QUOTE]
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