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Fixing the Third Party Grading (TPG) Problem
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<p>[QUOTE="dreamer94, post: 322844, member: 6449"]This could be done without government involvement. </p><p><br /></p><p>First, the TPG's must have no financial interest in overgrading. That would eliminate any TPG (or self-slabber) that sells the same coins they certify. </p><p><br /></p><p>Second, TPG's should agree voluntarily to an industry-standard guarantee that they could work out amongst themselves that simply states that if they make a mistake, they will bear the financial consequences for it. </p><p><br /></p><p>Third, various back-room deals (like endorsements, exclusivity arrangements or co-marketing schemes) with TPG's should be prohibited. </p><p><br /></p><p>These rules could be self-determined by the coin-collecting community. A certification process could be established to ensure that the TPG's meet all the requirements. This is similar to the process involved in certification of health care facilities so you can be sure that when you check into a hospital, the physician doesn't have a fake license and the hospital doesn't reuse their instruments without sterilizing them. That's a voluntary effort by a non-governmental body (JCAHO). But it works because the marketplace demands JCAHO certification. That would be a much better use of the CAC than simply creating more grading tiers to extract more money from collectors. </p><p><br /></p><p>If the coin buying community and sellers (like auction houses) accepted certification only from TPG's that followed these guidelines, there would be more confidence in their grading and it would also eliminate the need for auction houses (like ebay) to arbitrarily exclude some TPG's while accepting others. The buyers could make those decisions.[/QUOTE]</p><p><br /></p>
[QUOTE="dreamer94, post: 322844, member: 6449"]This could be done without government involvement. First, the TPG's must have no financial interest in overgrading. That would eliminate any TPG (or self-slabber) that sells the same coins they certify. Second, TPG's should agree voluntarily to an industry-standard guarantee that they could work out amongst themselves that simply states that if they make a mistake, they will bear the financial consequences for it. Third, various back-room deals (like endorsements, exclusivity arrangements or co-marketing schemes) with TPG's should be prohibited. These rules could be self-determined by the coin-collecting community. A certification process could be established to ensure that the TPG's meet all the requirements. This is similar to the process involved in certification of health care facilities so you can be sure that when you check into a hospital, the physician doesn't have a fake license and the hospital doesn't reuse their instruments without sterilizing them. That's a voluntary effort by a non-governmental body (JCAHO). But it works because the marketplace demands JCAHO certification. That would be a much better use of the CAC than simply creating more grading tiers to extract more money from collectors. If the coin buying community and sellers (like auction houses) accepted certification only from TPG's that followed these guidelines, there would be more confidence in their grading and it would also eliminate the need for auction houses (like ebay) to arbitrarily exclude some TPG's while accepting others. The buyers could make those decisions.[/QUOTE]
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