Sent 23 Morgans To CAC....The Results!

Although I have never had a coin that I wanted to submit to CAC, I definitely see the purpose those beans serve for high end coins. My only point is that we've all seen the wide variety of MS-63 - MS-64 Morgans. I have one in particular that is generously graded and I don't see how it would ever get a bean.

 

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What I find curious is the Gold Bean, which I guess means more than 1 grade undervalued ?

 

Thanks

 

At least one point undergraded. Could be one, could be 3.

 

My understanding is that a green sticker is for coins that are essentially problem-free and that grade anywhere from the upper two-thirds of the assigned grade up to the lower half of the grade for the next grade up. Similarly, a gold sticker is for coins that are essentially problem-free and that grade at least in the upper half of the next grade up when compared to the assigned grade.

 

No. The average sticker rate is around 40%.

 

If he submitted as a collector, he would only pay for the seven that stickered. When he sells, he will probably see increased prices that might offset the amount in its entirety.

 

You are correct.

 

Plus, it's EASIER to sell....he has the CAC and the COA that goes with it...anybody on the fence about the grade or authenticity now has 2 experts signing off on the coin.

 

I don't think many would be concerned about authenticity; the coins are easy to authenticate and these dates and grade ranges are very rarely counterfeited.

 

I have an account with CAC as a submitter. I am sending in all of my collection in batches with the idea that I may be selling some of them soon so the bean is just a way of possibly maximizing my return on some of them. The 1878s that were submitted were all ones I bought a number of years ago at different times from estate auctions around my area, sent in for grading myself, so I am glad those turned out well.

As for scrutinizing each coin before I send it to CAC, I imagine I could guess at which ones they will or will not bean but since it doesn't cost me but shipping and insurance, all of which I deduct from my taxes anyway, I might as well see what happens to them. I might get lucky and get some beans on a few that I might not think will.

What amazes me sometimes is an MS66 or 67 Morgan that I might send in doesn't get a bean even though it looks so much better than a 62 or 63. I would think those coins might fare better than the lower grades. But what do I know???

 

How do you come to that conclusion ?

I'm not saying you are wrong, there is clearly more $$$ at stake in a higher-graded and/or rarer year/mint Morgan. But by the same token, if you can mass produce tens of thousands of a lower-graded, less-rare coin you attract less-experienced eyes and collectors and are more likely to pass it off than a 4 or 5-figure MSD.

People don't worry as much about a $50 - $150 coin as they do one costing 10x or 50x as much.

 

As I understand it, the CAC bean is saying whether the coin is attractive to CAC/JA given the grade on the slab.

If your MS-66 is a middling 66 or even worse, an MS-65 that was generously graded, it won't bean. It would seem to me that gradeflation was more likely to happen to coins striving for high-60's numbers rather than low-60's numbers. Hence, all else equal, bean-ability might be higher for the population of lower-60's coins.

 

True....But if you go from MS-64 or MS-65 to MS-66 or MS-67...for many popular coins (MSDs, Saints) you get a bigger bang for your buck going up those grade levels than from MS-61 to MS-63, no ?

 

You are absolutely correct in that CAC is evaluating a coin based upon the TPG given grade. My experience is that while the MS/PR grade gets higher, the grade window gets smaller. The corollary to this is that it takes a more experienced or better eye to pick out choice coins as the grade gets higher since all the grading events are more tightly packed together.

 

7 out of 23 doesn't seem like a very good result, if you ask me. Post some pictures of the ones that passed, and post some pictures of the ones that didn't.

 

It doesn't necessarily mean they overgrade coins. CAC also rejects coins with surface problems, dipped coins, ugly coins, or coins they just don't like. These coins may all be perfectly acceptable in the market at the grade on the slab, they just don't meet CAC's highly variable and unknown standard (that is, "If JA likes it, he puts a sticker on it," to paraphrase Beyonce).

I'm also kind of surprised by the 40% ratio. Admittedly, I have not and probably will not submit anything to CAC. But I would assume that those who do would pre-screen their coins. This suggests three things to me:

1. People are overconfident in their coins. Ownership bias is real.

2. People are uneducated about their coins. They don't see the problems on the coins, and they don't know how to grade.

3. People don't know what JA is looking for. With the number of years and the number of coins out there, I would think this would be a little more clear, but its still a crapshoot.