I have several questions concerning grading and the possibility of notes (or a note) being sent in with the intent and prior knowledge knowing before hand it coming back graded higher then its actual real true grade. Within every enterprise or industry that makes money and is out for top profit there seems to always be someone that wants to capitalize and take advantage to misled a suspecting buyer or customer. Now to my questions.... Say hypothetically i have a note that would grade AU 50 or 55. With no folds or creases is it possible for that note to get graded New 60-64 by a grader who would have been asked from someone within the the currency industry so that note would bring more money? I know there have been threads about people doctoring notes for a higher grade but what about within the third party grading companies? Even if a collector exclusively buys from a pcda dealer how can one be sure that a rare top pop note didn't get over graded from a smaller unknown dealer that originally got it submitted....just to capitalize and gain a higher profit. Does anyone have any concerns or lack of trust in third party graders this will not happen?
Just to clarify: Would a third party grader re-grade a note higher, just to raise it's value, if one of their dealers asked for a favor? Would another dealer who obtains it, question this grade before he sells it? Question one: If they are all crooks from start to finish, yes. Anything is possible. Probable? Not so much. This has the most likelihood to happen when the seller's own grading company encapsulates and then sells the note. Question two: If you have a concern, ask the seller if you can bring someone along to give you a second opinion and then request a 30 day return in writing. I would hope you have enough background about the piece to eliminate the obvious.
What i mean is if its submitted raw and gets graded higher then it should to increase its value not so much necessarily re-graded. If a note is VF-45 would a grader have the means of slabbing it maybe AU 55 or New 60 without anyone ever know it was a VF-45 from the start? Or if its raw AU 50 or 55...can it get to a 60 or higher slabbed without a closer look taking it back out of its holder? How much opinion is in play from one grader to the next in determining its final condition? I haven't read through PMG's or PCGS's website to review these questions but would be interesting to see who knows what here with any conviction.
I seen one someone posted on here went from a 55 to a 62/63 if I remember correctly. It was a rare bill and the upgrade added several thousand dollars to the value. So yes, it's possible to upgrade. But to go from a 45 to a 60+ I doubt it.
It is the same as with coins. Being human, there are errors both ways. Resubmissions and grade corrections are a matter of record. That's why only certain grading houses are recommended to collectors. Heritage, Stack's & Bowers and even eBay won't acknowledge ratings given by unapproved third party graders in their auctions.
I don't have concerns about PMG: - Their graders are forbidden from buying and selling currency, so they have no conflict of interest - Two graders review each note, to ensure that there are no discrepancies Sure, you could bribe two graders, but you're not going to get a 60+ grade out of an XF note. The difference between 30 and 35, and 53 and 55 is arguable. But with grading standards known far and wide, any dramatic over-grade will be obvious and would harm the TPG tremendously in terms of future business. It will also hurt collectors and reduce the value of previously graded notes from that TPG. Just look at CGA. The very name still carries a stigma due to over-graded notes and seriously affects the resale value to this day, despite new ownership and grading standards. A CGA 67 might bring only as much as a PMG 64, and a PMG 67 would bring considerably more. Really, the truth of the matter is that you should buy the note, not the holder. The TPGs just facilitate transactions over the web, where you can't examine the note in hand. The numismatic community relies on their impartiality to buy, sell and trade. And buyers will pay a premium for the TPG's opinion. The TPG's reliability will determine that premium. I find it hard to believe any graders would take bribes, or that someone would think that a bribe could even work, considering the rather rigid standards. With the money you spend attempting to bribe a grader, you might as well just make a fradulent holder and label. Much easier and cheaper. I have a good opinion of PMG, PCGS and RCGS. They generally cross-grade without issue. CEC and CGA are shaky with me, and I generally avoid them unless I can examine the note myself. I'm not even going to mention CEC... the company where every note gets a 70. I'm sure if you bribed that guy, you might end up with one of these:
I recall a website that documented how raw notes were sold on eBay, only to appear in auctions later certified at much higher grades. Of particular note was one that was clearly folded and crinkled but after "treatment" was graded as uncirculated, and sold for a multiple of what it brought on eBay. I don't believe the TPG was involved, but I do believe there are con artists who know how to "improve" notes in ways that TPGs can't (or perhaps are not incentivized) to detect.
