Many of you know that in the last year the Coin Dealer Newsletter (the greysheet) was bought by a conglomeration that included players at NGC, PCGS and Heritage Auctions. It doesn’t take much looking to see the possibilities for the tail wagging the dog.
I think we are starting to see some of that influence already. The March 2016 monthly supplement issue of the greysheet has a guest commentator named Miles Standish. He writes a glowing article about ”Why Mercanti Matters”. The point of the article is to convince the reader that the former US Chief Mint Engraver is a significant historical figure.
Now- skip along the internet path with me to the NGC website. Low and behold – “John Mercanti signs deal with NGC”. On another page , “Miles Standish joins NGC. What can Miles do for you (dealers)?”.
So NGC has become very active in creating a coin market. They do this by getting autographs on labels and then “dealers” sell them on late night TV shows. Then the greysheet promotes this all by having Miles Standish write a guest commentary on John Mercanti.
The CDN was there to supply accurate information about the market place. It was not designed to manipulate or create the market.
NGC and PCGS are suppose to be independent and give opinions on the condition and authenticity of a coin. They are not suppose to create markets. These companies were seen by some as a solution to the problem of how to evaluate rare coins and make trades fair between collectors and dealers. Today, it looks to me, like they are starting to create their own market place instead of providing independent grading.
I do not think either of these developments are good for the coin market. NGC and PCGS have graded most everything of value so they have turned to marketing tricks to keep going. The CDN appears to be in to process of creating marketplaces instead of reporting on the market place. We will see where this all leads, but in my opinion, it is not good for the hobby.