Conflict of Interest

[Tradedollarnut]

homerunhall addressed the issue we were all breathlessly waiting for and I, for one, am left unsatisfied. My response:

 

David: I had heard several years ago that Heritage/Ivy/Halperin sold all their stock in NGC. Do you factually know that they still own it or are you just assuming? Perhaps that's why nobody talks about it?

 

I have heard from time to time of CU subsidiaries submitting owned coins to PCGS for crossover. Are you 100% certain that you would know of this occurring?

 

I know for a fact that B&M submits consigned coins to PCGS for grading. I also know that at FUN last year I hand picked 12 NGC coins for crossover from the Evergreen Hoard that Legend had just purchased. These were from the box that had been set aside to try again (the whole deal had gone thru NGC just once and these were upgrade candidates in my mind). We were 0-12 on crossover. These coins were then consigned to the B&M auction and were submitted by B&M for crossover. About half crossed. So either PCGS didn't like Legend, does like B&M or is inconsistent in its processes. But since I know that B&M does indeed submit consigned coins to PCGS, what is in place to prevent them from submitting owned coins along with the consigned coins? How could they possibly be differentiated?

 

[dragon]

TDN,

 

I thought that according to PCGS's procedures the graders are not supposed to know who the submittor is, so they should have no idea whether they're looking at coins from Legend, B&M, D. Halls golf partner, etc.

 

I think it is also common knowledge by now that PCGS definately has an 'agenda' where NGC crossovers are concerned, and I think it was laughable for D. Hall to feign ignorance about that subject. Like I said, I think the more he talks, the more damage he does to PCGS's credibility and he should not be making negative statements regarding NGC, that's not a good strategy nor good business IMO.

 

Dragon

[Tradedollarnut]

I've now been told two different things about Heritage ownership in NGC, so I have to admit that I don't know if they do or don't own stock.

[jtryka]

You know, if you look at that survey that came out a few weeks ago, it basically stated that NGC is about equal with PCGS, and that seems to be the view of NGC. But it is hard for PCGS to swallow that since in their own minds they will always be number 1. The NGC bashing by Hall is inappropriate, and really just reflects the size of his own ego. He would be much better served by encouraging competition to keep all the major players on their toes.

 

As for the conflict, it seems that Hall still doesn't get it regarding this issue. Somewhat reminds me of the logical circle involved in the following statement: "I'm lying."

[dragon]

I would also add that there have been too many specific instances in the past regarding insiders or individuals close to the company's insiders receiving favorable treatment/grades from PCGS to even remotely believe Mr. Halls comments.

 

Dragon

[keithdagen]

I don't believe that Heritage owning stock in any corporation should have been brought into the mix. Why address a perception problem at NGC to avoid answering a very real perception problem at PCGS that has been asked many times.

 

David's stock is dropping rapidly and the crediblity has flown out the door.