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<p>[QUOTE="Lehigh96, post: 4490893, member: 15309"]You seem to have the opinion that CAC green stickers have raised prices for those coins. The point of the CAC was to fight gradeflation by separating the coins that are solid for the grade from the dreck that represent low end for the grade examples that achieved those grades through years of gradeflation.</p><p><br /></p><p>A recent thread on Cointalk addressed the issue of owning a scarce coin whose rarity was reduced by the discovery of a hoard of such coins, which resulted in a drop in value. The sentiment was basically one of bad luck and most people were resigned to the fact that there was nothing you could do about it, but since it was a rare occurrence, it wasn’t that bothersome.</p><p><br /></p><p>Now consider the collector who owns a conditionally rare gem grade (MS65) with a population of 50 coins. His coin is valuable and he paid the prevailing price guide price to obtain it. But that same coin has a population of 500 in MS64, making it significantly less rare, and much more affordable, presenting a prime opportunity for the crackout artists to apply their trade. After years of the crackout game, they have managed to get 50 of the 500 MS64 coins to upgrade to low end MS65. As a result, the MS65 population doubles and its value drops, hurting the collector who purchased it before the gradeflation.</p><p><br /></p><p>In the eyes of that collector, the CAC sticker helps restore lost value, rather than simply raising the value of the coin as you assert. Unlike the rarity of new hoards being discovered, gradeflation is pervasive in the industry and has attacked virtually every conditional rarity. So while CAC may have increased the complexity of grading by introducing incremental grading, that doesn’t automatically mean its a bad thing.[/QUOTE]</p><p><br /></p>
[QUOTE="Lehigh96, post: 4490893, member: 15309"]You seem to have the opinion that CAC green stickers have raised prices for those coins. The point of the CAC was to fight gradeflation by separating the coins that are solid for the grade from the dreck that represent low end for the grade examples that achieved those grades through years of gradeflation. A recent thread on Cointalk addressed the issue of owning a scarce coin whose rarity was reduced by the discovery of a hoard of such coins, which resulted in a drop in value. The sentiment was basically one of bad luck and most people were resigned to the fact that there was nothing you could do about it, but since it was a rare occurrence, it wasn’t that bothersome. Now consider the collector who owns a conditionally rare gem grade (MS65) with a population of 50 coins. His coin is valuable and he paid the prevailing price guide price to obtain it. But that same coin has a population of 500 in MS64, making it significantly less rare, and much more affordable, presenting a prime opportunity for the crackout artists to apply their trade. After years of the crackout game, they have managed to get 50 of the 500 MS64 coins to upgrade to low end MS65. As a result, the MS65 population doubles and its value drops, hurting the collector who purchased it before the gradeflation. In the eyes of that collector, the CAC sticker helps restore lost value, rather than simply raising the value of the coin as you assert. Unlike the rarity of new hoards being discovered, gradeflation is pervasive in the industry and has attacked virtually every conditional rarity. So while CAC may have increased the complexity of grading by introducing incremental grading, that doesn’t automatically mean its a bad thing.[/QUOTE]
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