I have written about the many rip off artists that are wolves in sheep’s clothing. But what happens when your trusted advisor turns out to be a sheep, but the Benedict Arnold of sheep?
The tele-marketers harm the coin market. They give everyone in the industry a bad name. They cause confusion. They misrepresent item’s values. So I would like someone to tell me how that is different than PCGS’s price guide. It causes confusion and misrepresents the true value of coins.
Here is what I mean. Today I had a gentleman come in with some high grade Lincoln cents, all PCGS graded. He used the PCGS price guide to value them. Many of the coins are modern (1940s and newer). Many of the coins are not listed in any reputable price guide. So I did some research of recent auctions to try to find prices. Many of the coins on his list were selling for half (or less) of the PCGS price guide. What good is a guide that is wrong by 50%? Perhaps the weatherman would like to answer that question.
The problem of coins being overpriced in guides is nothing new, but PCGS has positioned itself as a highly trusted brand. So when they portray values, collectors believe them. I’m wondering if there is any brave souls in the industry that are willing or able to tackle this problem. It is a black eye to coin collecting. It isn’t as bad as what the stamp dealers did in the 80’s, but numismatists need to be careful so we don’t go down that same road.
It is very confusing for new collectors to understand value when the first thing they are told is to only buy certified coins and to only trust NGC and PCGS. Then they look at the PCGS price guides and buy based on it. But what happens when they go to sell the coins? No coin dealer likes to be in the position of trying to explain to a collector why their coins are worth 20%-50% of what they paid for them. PCGS doesn’t have to worry about the pricing, they aren’t paying those prices.
As a community it would be helpful if more collectors (hello ANA!) would cry wolf on price guides put out by the “independent” coin grading companies. PCGS and NGC- please just grade coins and don’t set prices. It is a conflict of interest and it causes confusion and misinformation in the marketplace.