Dangers of Generic Coin Grading Companies

You should only buy coins graded by PCGS, NGC,It's especially nerve racking to pay for a "red"
and Anacs. All other third party grading companiescopper penny only to see it turn brown a couple
have major flaws in their grading. Many of theseof months later. In the case of PCGS, they will
flaws make these coins difficult to buy/sell, if notcompensate you accordingly if a coin in one of
impossible.their holders does not live up to the grade and
One of the biggest major concern is overgrading.attribute on the slab.
A lot of these companies sell coins that areThe worst fear of buying a coin graded by an
overgraded. If they are conservatively graded,unknown company is buying a counterfeit coin.
these companies would lose money. Their marketCounterfeit coins have no numismatic value
presence is just not there. Collectors wouldn't buywhatsoever. I think that there are some crooks
them unless they were deeply discounted. Sothat knowingly grade counterfeit coins. Once the
what do they do? They overgrade the coins. Socoin is graded, they pass it off as a real coin. The
even if the coin was sold at a huge discount,problem lies in the inexperience of the grader. He
these companies would still profit. If they do notShe may not intentionally do anything wrong. But,
do this, they would never make any money. Sothe lack of experience causes problems for all
it's safe to say that most, if not all of their coinscollectors out there.
are overgraded. Unwary collectors are onlySo the next time you look for a coin, you had
attracted to them because of their high gradesbetter think twice before buying a generic slab.
and cheap prices.PCGS, NGC, and Anacs offers a conservative
The next biggest concern is the actualgrading standard you can trust and a coin that is
encapsulation slab. PCGS and NGC sell their slabsguaranteed authentic. I wouldn't trust any other
so that nothing gets in (most of the time.) Thiscompany with my coins and you shouldn't either.
important because air and moisture can easilyAll three companies put together will be able to
seep into the slab and damage the coin. I don'toffer all the grading services you need so you
think any collector wants to spend a coupledon't have to look elsewhere for professional
hundred dollars on a coin that would corrode later.grading services.