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<p>[QUOTE=&quot;GDJMSP, post: 683816, member: 112&quot;]OK, then I&#039;ll ask this - do you believe that gradeflation exist and is real ?</p><p><br /></p><p>Mark the point I am getting at, and I think you know it, is that I believe that the TPG&#039;s do not grade to same standards that they used to grade to. In other words, a few years ago, lets say in 2002, they (and I mean both PCGS and NGC) would have graded a given coin as MS64. But in 2007-08 that very same coin was then up-graded to MS65, maybe even MS66 in some cases.</p><p><br /></p><p>Now this is especially true, and often most easily seen, with the toned coins. Back in 2002 you couldn&#039;t hardly give toned coins away. Blast white was all the rage. Sure there was a small group that liked them and would buy them, there always was. But the toned coins back then were graded more on the actual condition of the coin - 64&#039;s were graded as 64&#039;s. Whereas in today&#039;s world those very same coins are pretty much all graded as 65&#039;s and 66&#039;s.</p><p><br /></p><p>Why ? Because the prices went up. Those same coins that used to sell for $200 now cost $600, $800, $900 and more. And as the prices rose so did the grades.</p><p><br /></p><p>You were there Mark, you have seen the very same things that I have seen. And it isn&#039;t only with the toned coins that this happened either. As the bull market progressed and prices increased 300% over what they were in 2002, the grades all went up right along with the prices. I didn&#039;t imagine it - it happened.</p><p><br /></p><p>Now, in our discussions in recent months we have rehashed the same point several times. That being about when the TPG&#039;s tightened up. You consistently say it was 3 years or longer ago. I say it has been more recently, starting last year and increasing this year.</p><p><br /></p><p>Now there is a certain logic to my thoughts as well. For all through the 90&#039;s the coin market was stagnant, it didn&#039;t go up and it didn&#039;t go down. At least not much. Then in 2001 it began to creep upwards. By 2003 it was taking off and by 2004 it was a rocket. Then it settled down, even dropped a bit and took off again in 2005. It was not until later in 2008 and 2009 that things began to turn downwards.</p><p><br /></p><p>Now, it is my contention that the TPG&#039;s followed right along with the price increases. And as the prices creeped upwards so did the grades being assigned to the coins. But now that the market has taken a downturn, those grading standards are tightening up again. The TPG&#039;s are getting tougher. Yeah, CAC coming onto the scene, coincidentally at the same time, has probably played a part in that tightening as well. But not as much as the prices dropping has.</p><p><br /></p><p>Now are you gonna say that it is just coincidence that grades loosened and then tightened, right in step with the market ? Or are you gonna say that grades never changed at all ? Or - are you going to agree with me ?</p><p><br /></p><p>That&#039;s the question I&#039;m trying to get you to answer.</p><p><br /></p><p><br /></p><p><br /></p><p>On that we agree.[/QUOTE]</p><p><br /></p>

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