Will the chaos created by the Third Party Grading Services (TPGS) never end? The US numismatic periodicals have been loaded over the past year or two with articles about the inconsistent grading by all of the TPGS. Some powerful people in US numismatic circles believe this inconsistent grading needs to be addressed by yet another grading service.
Yes, you read that correctly, we now have another grading service, CAC, grading the top two TPGS! I guess we will have to call CAC a Fourth Party Grading Service. From what information I can gather from these articles and the Internet John Albanese, noted US coin dealer and founder of the Professional Coin Grading Service (PCGS) in 1986, along with several other coin dealers has founded this new service. Albanese left PCGS shortly after it was started and with Mark Salzberg they founded Numismatic Guaranty Corp. (NCG) in 1987. Supposedly Albanese sold his stock in NGC sometimes late in the 1990s.
Beyond any doubt John Albanese is one sharp man; who else can say they were instrumental in creating not one, but two of the greatest powerhouses in US numismatics? I guess only the great Q. David Bowers could rival John’s record in modern times, but does the numismatic market really need a Fourth Party Grading Service? From what I can find out, the only current targets for the CAC service are only PCGS and NGC. I guess CAC doesn’t want to enter into any bitter lawsuits with some of the newer, and less well-known litigators such as IGC so they are content to mess with Albanese’s old firms. If you would like more information about all of this go to COINLINK Numismatic News at www.coinlink.com.
We must question what impact all of this will have on Mexican Numismatics in the future? Beyond a doubt there are many poorly graded Mexican coins in both of these companies plastic holders out there floating around, and I wonder if CAC will try to tackle these problem coins? I rather doubt it, as there isn’t enough money in this market segment at this time.
This brings up another sore point that raises my hackles; third party grading is becoming the “in thing” in Mexican Numismatics. As much as I hate to admit it, Mexican Coins graded by TPGS are bringing more money, much more, at this time in public auctions. This is especially true of auctions conducted in the USA.
At the recent Houston Money Show, our booth (Mostly Mexican) saw many coin collectors and dealers visiting, and all were amazed that the majority of the coins in my personal display case were raw coins. Upon closer inspection these people discovered that there were many tags from TPGS with my coins. These people couldn’t believe that I had “cracked out” so many nice coins from their plastic “condoms”. Several wanted to know why I done this evil deed? First, it is impossible to properly scan coins, with my poor scanning skills, and second I just personally don’t like someone else grading my coins.
A case in point; I had a gentleman who wanted to purchase a single Republican gold 20 Pesos for a Denomination Type Set; I showed him what I had brought to the show. He asked why there was so much difference between some of the Mint State coins I had and the supposed grades issued by the TPGS. I told him I couldn’t explain why coins graded MS61 were so much better looking than some graded MS62 or MS63, except for the overall rarity of a couple.
Later, after returning home, I sent him my five of my very best inexpensive 20 Pesos along with the tags from three of the coins that had been graded by TPGS. Now the choice of which one fits his budget and collection is in his hands, not someone else. And this is the way things should be done; you the collector of Mexican coins need to learn to look at the coins for your collection, not the grade on some plastic holder.
I’m kinda glad I no longer collect Mexican coins, because Mexican Numismatics seems to becoming another commercial plastic paradise.
Enough of my BS for now; good luck finding that “star” that fits into your collection.
Be sure to check out the other two articles by one of our Mexican Coin Magic readers in the other parts of the Soap Box in this issue, as I’m sure you will enjoy both.
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