By John Feigenbaum – David Lawrence Rare Coins

Well, now that PCGS has made it “Big One” announcement, it’s possible to speculate on how this might affect the coin industry (I used to call it a hobby but I think that ship sailed a long time ago). There’s an awful lot to digest here, but I had the benefits of advance notice of this announcement by Mr. Hall himself and I was able to personally attend the Press Conference at the Ft. Worth ANA National Money Show when the Big One was unveiled publicly.

For starters, if you are not familiar with the “Big One” I recommend that you read/view all about it on the PCGS web site first. This was actually a dual announcement:

1) PCGS is going to start laser-scanning/fingerprinting certain submissions (the submission tier is called “Secure-Plus”, which costs a little more) to make certain these items haven’t already been submitted. If so, the system will allow the graders to compare the coins with images of the same coin to be certain it hadn’t been doctored or altered in any negative manner.

2) Coins submitted in the “Secure Plus” tier are eligible to be examined for a “Plus” grade which is awarded to any coins the graders determine to be in the top 30% of quality in the grade range. Or, as David Hall defines it, the “A” category.

Let’s start with the laser scanning technology. Mr. Hall claims that it was “never PCGS’ intention to grade the same coin 40 times” which is a way upgraders use the system to repeatedly send the same coin in until it finally gets the added benefit of doubt and achieves a higher grade that it typically would get. This ultimately is a cause for “gradeflation” which has long term negative effects on the hobby. The logic also follows that a database of stolen coins that have previously been “fingerprinted” can be marked for future submissions. In the event they ever come back in to PCGS, the coins will be flagged and justice can be served. Apparently one major insurance company is offering a discount for SecurePlus coins thanks to this service.

I love this concept for all the reasons PCGS is brandishing. But it’s flawed… Clearly, from the outset, there is a major loophole (or, chasm) in the service because only coins submitted in the more expensive “Secure Plus” tier are being fingerprinted. So a doctored, or stolen coin, can simply be submitted without the added expense and we’ll never know if it was doctored. Or, what happens if a coin is upgraded via the non-Plus service but later submitted for “crossover” into the “Secure Plus” and PCGS realizes what has happened? Will the buy it off the market? That could be very expensive for them. I directed these inquiries directly to PCGS’ President Don Willis, to which he replied that this is merely the initial launch of the product and they need some time to refine the details. I hope, at a minimum, that they ultimately choose to fingerprint every coin submitted (at least every coin over $500). I think that would benefit PCGS as much as the consumer.

(more…)

David Lawrence Rare Coin Auctions will be offering 94 coins from the “Picky Collection” in a special 2-week Internet Auction #461 closing March 11th.

This meticulous collection is the culmination of 25 years of numismatic searching. DLRC owner John Feigenbaum noted, “The Picky Collection is an AMAZING group of 90+ bust coins (mostly halves). We called it the “Picky Collection” as the collector was sooo fussy. It paid off as most of the coins CAC’d, giving it their seal of approval. If you love Bust coinage check this out.”

Feigenbaum continues..”Collectors are getting tired of hearing how there are now fresh coins out there…blah, blah, blah….But it’s really true. We haven’t seen anything like the regular flow of fresh coin collections coming from our clients in the last 18 months, like we had in years prior.

Many high-end quality pieces that are becoming harder and harder to find in the marketplace ! … John Feigenbaum

It’s hard to explain the phenomenon but collector’s are keeping the prized numismatic holding close to their chests. Prices have come down across the board in this time period, and I’m guessing folks don’t want to lose money on their collections. Sure, at a profit we’d see more sellers, and I think this fueled the activity in the late 1990’s.”

Bust Halves (71) make up the majority of the Picky Collection with an additional (6) Bust Dimes, (5) Bust Quarters, (5) Liberty Seated Half Dollars along with a few Early Gold pieces.

Each coin has its own unique look and charming characteristic as the owner was insistent upon in order to fit into his collection.
(more…)