Discussion in 'US Coins Forum' started by Robert Palatin, Sep 1, 2021.
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@Robert Palatin .
TPG grading protects buyers from both problem coins and over graded coins. It absolutely amazes me that people think that TPG grading benefits dealers.
Before the existence of the TPGs, do you know who assigned the grades of the coins? That's right, the dealers. So when you go to sell a coin, the dealer tells you it has rub and is AU and offers you an AU price. As you walk out the door, he puts it in a 2x2 and slaps a GEM BU label and price tag on the same exact coin.
Furthermore, I can't understand this sudden fascination with technical grading lately. Technical grading only considers surface preservation, and completely ignores luster, strike, and eye appeal. It is an antiquated system; its dead and needs to be buried.
TPG market grading doesn't increase the value of a coin, contrary to what most people believe. All it does is increase liquidity. For example, let's say you have a gem grade 1924 Peace Dollar with a price guide value of $150. Whether the coin is raw or graded makes no difference, it is still the same coin worth the same price, $150. The difference is that when raw, the buyer pool willing to pay you full value for your coin is very small because they need to have confidence in their grading skills to KNOW the coin is a gem. If they have any doubt, their recourse is simply to seek out an already graded MS65 1924 Peace Dollar, or to buy your coin at MS64 price which is about half price. The reality is that very few collectors have the requisite coin grading skills to buy and sell raw coins without taking a bath, so they prefer to use the crutch that is graded coins. Ironically, the use of that crutch usually ensures that they never learn how to grade coins, leaving the pool of people willing to pay full price for raw coins a very small pond.
I think a lot of people use "technical grading" to refer to "preservation weighted" grading. I think CAC grading should be called "luster grading" & PCGS grading should be called "I wanna be JA but I don't know how" grading.
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