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<p>[QUOTE=&quot;calcol, post: 8384825, member: 77639&quot;]Gradeflation gets a lot of verbiage on the forum.&nbsp; For newbies, gradeflation refers to a loosening of grading standards by grading companies over a period of years.&nbsp; For example, a coin that graded MS63 25 years ago might grade MS63+ or even MS64 today.</p><p><br /></p><p>The purpose of this post is not to argue whether gradeflation is real.&nbsp; I suspect it is to a limited extent over decades.&nbsp; I’ve had better results with coins graded long ago (compared to recently graded coins) when submitting for a regrade.</p><p><br /></p><p>However, I think gradeflation is less a problem for more expensive coins than cheaper coins.&nbsp; And I don’t mean expensive coins are less susceptible to it than cheaper coins.&nbsp;&nbsp; It has to do with relative costs of regrading for expensive versus cheaper coins.</p><p><br /></p><p>Ultimately, grading is ranking a coin among its peers of the same nationality, denomination, mint, design and variety.&nbsp; This doesn’t change with gradeflation.&nbsp; But with gradeflation and over time, for a coin’s assigned grade to reflect its rank, it’s gotta be submitted for regrading.&nbsp; This is irritating and keeps money flowing from collectors and dealers to TPGs.</p><p><br /></p><p>And this process is relatively more costly for less valuable coins than expensive coins.&nbsp; A look at the pricing of TPGs tells that tale.&nbsp; I’ll use PCGS as an example and compare a pre-1965 US coin worth $500 based on current grade with a pre-1965 US coin worth $10,000 based on current grade. </p><p><br /></p><p>I’ll assume the coins will be shipped from the middle of the 48 states … Manhattan, KS, and shipping will be via the cheapest, insured way.&nbsp; For the $500 coin, that’s parcel post with USPS insurance which amounts to $16.40.&nbsp; For the $10,000 coin, that’s registered mail with private insurance which amounts to $34.75.</p><p><br /></p><p>Now for PCGS charges.&nbsp; For both coins, there will a $10 handling fee.&nbsp; The $500 coin will require Regular service level, which is $38.&nbsp; The $10,000 coin will require Express service level, which is $65.&nbsp; Both these levels include Gold Shield, which provides pics among other things.&nbsp; Finally, return shipping will be $22 for the $500 coin and $36 for the $10,000 coin.&nbsp; PCGS totals: $70 for the $500 coin and $111 for the $10,000 coin.</p><p><br /></p><p>Grand totals (shipping to PCGS plus PCGS charges): $86.40 (17.3% of value) for the $500 coin; $145.75 (1.5% of value) for the $10,000 coin.&nbsp; In terms of percent of value, regrading the $10,000 coin is a much better deal than for the $500 coin.&nbsp; So, to correct for any gradeflation after holding a coin for a couple of decades, the owners of more expensive coins will pay a lot less (relatively) to have their coins’ labels brought to the current standard.</p><p><br /></p><p>Cal[/QUOTE]</p><p><br /></p>

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