Secrets of the PCGS...

Discussion in 'Coin Chat' started by sf340flier, Jul 21, 2008.

  1. sf340flier

    sf340flier New Member

    Okay, well not really secrets...just little nuggets of info gathered from CLCT's annual 10-K report (CLCT is the ticker symbol for the parent company of PCGS).

    But, with all the discussion taking place about PCGS and it's decline in submissions and revenue from submissions (of which both facts are true as of 2007), I thought I'd take a closer look.

    Did you know...

    By my calculations, the average owner's declared value of a PCGS submitted coin in 2007 was $920.46.

    By my calculations, the average price paid for authentication and grading at PCGS in 2007 was $14.96 per slab.

    As reported, there were over 200,000 less coin submissions to PCGS in 2007 than in 2006.

    As reported, the top 5 customers at PCGS accounted for roughly 14% of the company's revenue.

    It's all in the report...all in all, even with the slight decline in 2007, CLCT is a pretty well run company (in my humble opinion).

    By the way, the new 2008 10-K is due out soon...

    Source: CLCT's 2007 Annual Report
     
  2. Avatar

    Guest User Guest



    to hide this ad.
  3. sf340flier

    sf340flier New Member

    One more "nugget" I found in the latest quarterly:

    Coins and stamp grading reference sets jumped to $644,000 (as of March) in value from $222,000 in 2007. Kinda interesting...

    Source: 2008 Quarterly Report
     
  4. Peter T Davis

    Peter T Davis Hammer at the Ready Moderator

    Interesting. Who were those top five customers?
     
  5. sf340flier

    sf340flier New Member

    They didn't list them by name in the report, but I'm sure some of the big auction houses would be near the top (Heritage, Bowers, teletrade, etc.).
     
  6. Catbert

    Catbert Evil Cat

    Not surprising, really

    "The Pareto principle (also known as the 80-20 rule, the law of the vital few and the principle of factor sparsity) states that, for many events, 80% of the effects come from 20% of the causes. Business management thinker Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed that 80% of income in Italy went to 20% of the population. It is a common rule of thumb in business; e.g., "80% of your sales comes from 20% of your clients.""

    http://en.wikipedia.org/wiki/Pareto_principle
     
  7. gmarguli

    gmarguli Slightly Evil™

    It used to be Tulving was #1, but since he got sick I don't know how much they submit anymore.

    RCW is probably near the top of the list and was considered to be #1 by some people until it was reported that Tulving was #1. They supposedly do a lot of high priced submissions.

    TeleTrade is probably not even close. They get a deep discounted rate and I suspect that most of the coins auction by them were already slabbed.

    Bowers doesn't strike me as a big submitter. Heritage is.
     
  8. Haleiwa

    Haleiwa New Member

    This has been very interesting reading. Didn't the owner of PCGS start another company that re-grades PCGS, NGC and other grading companies with a certification stamp that validates the grade or else re-grades it putting it in a different slab all together?
     
  9. sf340flier

    sf340flier New Member

    To my knowledge, David Hall (who founded PCGS), has nothing to do with CAC. CAC is a consortium of well-known dealers who will put a sticker on PCGS and NGC coins. I have not seen a CAC coin in hand, only in pictures. In my opinion, the CAC coins are bringing higher prices at auctions and on ebay, although the jury is still out on the long term.
     
  10. gmarguli

    gmarguli Slightly Evil™

    David Hall actually founded PCGS with several other people including John Albanese who left PCGS to found NGC and left there and is now the founder of CAC.
     
  11. Bonedigger

    Bonedigger New Member

  12. spock1k

    spock1k King of Hearts

    or in coin talk where 20% of the members cause 80% of the problems :D
     
  13. spock1k

    spock1k King of Hearts

    why dont we do the same thing. i am looking for a few entrepreneurs
     
  14. spock1k

    spock1k King of Hearts

  15. Bonedigger

    Bonedigger New Member

    LOL, and you're Albanese (sp?)...
     
  16. spock1k

    spock1k King of Hearts

    no i am spock :)
     
  17. GDJMSP

    GDJMSP Numismatist Moderator

    I'd knock off that first 0 ;)
     
  18. spock1k

    spock1k King of Hearts

    revised statistic after GD's secret sharing post

    2% of CT members cause 80% of the problems.


    BTW the other thread has 200+ posts why not be nice and tell me who the gang members are so we can all continue with our peaceful lives :)
     
  19. GDJMSP

    GDJMSP Numismatist Moderator

    As I said once before, all will become clear in time ;)
     
  20. spock1k

    spock1k King of Hearts

    the other gang members are not here becoz this thread is kind of heated up so no one will watch you ;)
     
  21. Arizona Jack

    Arizona Jack The Lincoln-ator

    Every time you mention that Spock, postage gets delayed untill you forget again. I am a poker player, and I am holding the cards.:kewl:
     
Draft saved Draft deleted

Share This Page