Question about grade inflation

[toyonakataro]

When I re-stareted collecting coins in 2001, grade inflation was already there and people were willing to pay premium for coins in older generation slabs.

Do you think grade inflation is still continuing now? 

Are coins graded in 2001 generally undergraded in today's standard? (and if so, has grade inflation accereleted in recent few years or progressed constantlly in the past 16 years ? )

How about CAC?  Do they remain consistant in grading coin since they started their business ?

 

 

[BillJones]

Grade-flation has continued since 2001, and in the last year or so it has gotten worse. Very recently, however I bought a very scarce coin in a new holder that was accurately graded and very pleasantly surprised. Also, a dealer I know claims that he has seen some tightening on some large cents he purchased for inventory. So perhaps the pendulum is swinging back.

 

To say that coins graded 2001 are "generally undergraded" by today's standards is a dangerous assumption. If they were, many of them have been cracked out and resubmitted for upgrades. There is a certain truth to the statement that PCGS Old Green Label holders and NGC "fatties" might be under graded or conservatively graded, but certainly not all of them!

 

As for CAC, most people don't like what I have to say about it. CAC gets it right a lot of the time, but you can't say that they get it right 100% of the time by a long shot. You can't just blindly buy a CAC approved coin and be rest assured that that it is graded properly. CAC makes mistakes too.

 

Bottomline - you need to know or learn how to grade and think for yourself. There are overgraded coins in new holders and properly graded coins in new holders. You can't generalize and exptect to land on top with no problems.

[physics-fan3.14]

40 minutes ago, BillJones said:

Bottomline - you need to know or learn how to grade and think for yourself. There are overgraded coins in new holders and properly graded coins in new holders. You can't generalize and exptect to land on top with no problems.

This is very true. 

If you know how to grade for yourself, it doesn't matter what the little piece of plastic says. There are overgraded and undergraded coins in any holder - rattler, soap bar, no line fatty, later slabs, newer slabs. It doesn't matter. What matters is that you know how to grade for yourself. 

[numisport]

I am able to grade coins myself by now. I'm probably nuts too but I put heavy weight on eye appeal and that's where I think often times the TPG's miss it with proof coins.

[toyonakataro]

5 hours ago, BillJones said:

As for CAC, most people don't like what I have to say about it. CAC gets it right a lot of the time, but you can't say that they get it right 100% of the time by a long shot. You can't just blindly buy a CAC approved coin and be rest assured that that it is graded properly. CAC makes mistakes too.

I know CAC is not a God, but if they are relatively consistant in maintainig their grading  standard since thier beginning, then I can somewhat reduce the risk of buying overgraded coins when I see their sticker on the holder I'm intending to buy.

[numisport]

CAC does not grade coins. It only identifies A or B quality for the NGC or PCGS assigned grade. C quality coins do not meet their standards and would not be purchased sight unseen by them. Please correct me if necessary.

[coinman1794]

6 hours ago, physics-fan3.14 said:

This is very true. 

If you know how to grade for yourself, it doesn't matter what the little piece of plastic says. There are overgraded and undergraded coins in any holder - rattler, soap bar, no line fatty, later slabs, newer slabs. It doesn't matter. What matters is that you know how to grade for yourself. 

And once you know how to grade for yourself, you will learn that the grades on holder are guide-points only.

[toyonakataro]

8 hours ago, physics-fan3.14 said:

If you know how to grade for yourself, it doesn't matter what the little piece of plastic says.

Maybe you are right.  But if you are to bid coins online, although some auctioners provide great images, you can't fully grade from images alone.

 

[Conder101]

If industry gradeflation continues (and it will) and CAC doesn't alter their standards along with it, the result would (will) be fewer and fewer coins getting beans.  If they do alter their standards to match then the rate of beans awarded will remain constant, but the rate of older holders getting gold beans will increase.

[BillJones]

12 hours ago, numisport said:

I am able to grade coins myself by now. I'm probably nuts too but I put heavy weight on eye appeal and that's where I think often times the TPG's miss it with proof coins.

Eye appeal can be just as important as the technical grade. A coin that makes the grade “by the book,” but which has a so-so appearance, is harder to sell and will probably bring a lower price than a more attractive example which is the date, mint and variety.

[kidrootbeer]

On ‎6‎/‎18‎/‎2017 at 2:47 PM, physics-fan3.14 said:

This is very true. 

If you know how to grade for yourself, it doesn't matter what the little piece of plastic says. There are overgraded and undergraded coins in any holder - rattler, soap bar, no line fatty, later slabs, newer slabs. It doesn't matter. What matters is that you know how to grade for yourself. 

and if, for whatever reason you play the reCert Game, you won't go broke

[kidrootbeer]

On ‎6‎/‎19‎/‎2017 at 1:34 AM, toyonakataro said:

Maybe you are right.  But if you are to bid coins online, although some auctioners provide great images, you can't fully grade from images alone.

 

nooooooooooo, but if you've taken and scanned coins for pictures, and if you know that the seller scans or photographs, then you will have a petty good idea what to expect