April 1st Musings on the coin market and Secure Plus 4/2/2010

on 02 April 2010. Posted in News

Well I managed to live to see the “Big One” by PCGS.  Thankfully, all the excitement did not kill me.  I must congratulate them on finding a way to make more grading fee money on coins already graded in a market of dwindling supply of fresh material.  Look for NGC to quickly follow suit. 

I’m sure NGC gave themselves an “I could have had a V-8” slap in the forehead for not thinking of this first.  Again….kudos to stay a viable business entity by garnering more submissions.  I’m sure the most affluent and elite registry people have had special early announcements and opportunity to have their coins done by Secure Plus.  It may have cost them $10,000 to $100,000 but now they have a plus sign on some of their coins and PCGS fattens their bank account.

I am going to list a few thoughts and concerns I have early on.  Keep in mind, this is a new concept and the market will dictate if indeed it is an option for the end owner of the coins to really make money with it or is it just a big money grab for PCGS with expensive grading fees.

First, who determines what coin qualifies for a Secure Plus rating?  In other words, how dipped does the coin have to be.  The powers there have always had the white is right mentality, so now as a steward of the hobby, I have to trust a money grab capitalist to tell me my coin is P.Q.  To me as a coin student, that is sad.  I know gorgeous color will always be in demand, and PCGS will plus original coins but to me a dipped coin is a tampered with coin.

Secondly, who will benefit initially from Secure Plus?  In my opinion, only the quick flop artist.  They will scurry around at shows and try to buy coins to qualify and ask a high price hoping to capitalize on future anticipated value.

Third, how long will it be for graders to adjust to the 700 point system?  The current Sheldon scale of 1 to 70 is open to interpretation.  Now we’ll have graders trying to determine a 65.7 which does not qualify as a plus and a 65.8 which does?    And to top it off, your coin is scanned so good luck in the future trying to get a Secure Plus grade.

Fourth, this system only works with dealers putting their money where their mouth is to buy the product.  And these dealers need a secondary market to sell the product…an end user if you will.  That’s why I like the CAC concept.  It’s not expensive for another opinion on the coin.  There is ready market acceptance of the product.  And a retail force is in place to sell to an accepting public or end user.

Fifth, as more and more supporters of Secure Plus hopefully come on board to support the product, the grading standard may loosen; however, you already have a superb coin that was sent in to PCGS and is now scanned as already not meeting Secure Plus standards.

My advice for now is to keep your nice coins as they are.  Strict desirable numismatic coins are always in demand and if you have not sent in your coins for Secure Plus and it is accepted by the market, dealers and collectors will be dying to find original P.Q. coins to try for Secure Plus which may mean big money to you in the future.

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