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jojopumpkin's Blog

18 Aug 2015

Does any one wonder if big grading companies fund counterfeit coin productions?

| jojopumpkin

When you are never quite sure if you want to buy a raw rare coin from your local coin store because of all the counterfeits you see online that are being produced you will always rather go with a graded coin! Being scared of spending hundreds if not thousands of dollars on a coin that turns out fake has caused everyone to buy graded coins instead doing your own research and inspect the coin you wanted to buy. The more counterfeits are produced the more scared the collectors are of raw ungraded coins causing everyone to pay ten maybe even hundreds of dollars for the grading service. So in reality the more scared the collectors get of counterfeits the richer the grading companies get..... on a paranoid note it makes you wonder if the grading companies fight with counterfeiters has a some what different relationship than we all think? The coin collectors community seems to be getting smaller when the grading companies keep getting bigger something just does not seem right?












I WANT TO BELIEVE......

Comments

I am not quite sur?

Kepi

Level 6

Due to lack of recent activity I am "un-following" you. Good luck on your collecting.

user_7579

Level 4

It would be difficult to image the counterfeiters would need any additional funding source other than the proceeds that they are already gaining from their illicit product sales to their victims.

Kid Morgans

Level 4

That is a very interesting topic to think and write about! Great blog post!

user_5225

Level 5

true, so do some reaseach on the grading companies.

ShriekenGriffon

Level 5

I never thought about that question, but collectors need to study up and maybe they can get the coin they want for less money. This is why they are just called collectors and not numismatists.

user_7180

Level 5

I have been told by many dealers concerning grading services "in recent years the grading standards have been relaxed". This seems to flow with all the comments about sending in coins again and again until they get their "upgraded" numbers. Call it manipulation, preferential dealer treatment (i.e. they do lots of deals together) or whatever. It casts a shadow over what would otherwise be considered the impartial authoritative service. I know of one coin dealer that sent an 1895-O Morgan Dollar graded NGC AU-53 in an old cracked holder to the "conservation services" and then had it graded by NGC which came back as AU-58. It might not seem like much, but the dealer made a cool $450 profit. I saw the coin before and after and it had better eye appeal. But there is no way it should ever have been graded more than AU-53 (in my subjective re-evaluation). It is enough to make one wonder about every graded coin and the subjective nature of the grading services!

Longstrider

Level 6

Just because a coin is graded doesn't mean it is graded correctly. How many people resend in a graded coin in hopes, often correctly, that it will be graded higher?

jojopumpkin

Level 3

Yes the moral thought and originality of being protected by grading companies from over graded or counterfeit coins sounds like a fantastic idea! Please explain to me why i have had numerous conversations with coin dealers that have a close relationship with large grading corporations from spending thousands of $, send them in bulk ms 64 Morgan Dollars graded by that same company and have them upgraded to ms 64+ or 65! Now making that same coin jump up in value $10-$1000 for the average coin collector just because it now has a new grade put on the holder as a favor to the preferred customer of the grading corp. Did all 3 of the graders that originally graded the coin have bad eyes that day or did their equipment malfunction? I just do not understand how 1 person (retailer of the coin) can decide the professional graders are wrong and that it needs a higher grade which will only bring more money into the retailer and grading corps pocket and costing the collector more money now for the same coin? after paying a large $ and having the coin examined by multiple graders with advanced equipment i expect the correct grade the first time. I may have it all wrong but something just does not look right in my opinion

World_Coin_Nut

Level 5

The grading services simply offer piece of mind that what you are purchasing (or selling) is both authentic and properly graded (at least close). In my mind it is worth a small premium to buy a graded coin. I have been burned by buying raw fakes.

LNCS

Level 5

No one fights against the counterfeiters more than the grading companies. If the coin collecting community was getting smaller, then the need for coins (certified or not ) would also be getting smaller, not larger.

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