 |
This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. (June 2009) |
The Professional Coin Grading Service (PCGS) is a third party grading service for grading rare coins. It determines the condition and authenticity of each coin it grades to provide consumers with a rating on which to judge the coin, and encapsulates coins in sealed see-through plastic holders. It was founded in 1986, and is located in Newport Beach, CA.
Contents |
Controversies
 |
The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (June 2009) |
In the May 26, 2003 edition of Coin World, the hobby newspaper had announced they had contracted investigators to conduct a year-long, comparative study of PCGS, ACCGS, NGC, Numismatic Guaranty Corporation and several other grading services, each know as a Third Party Grader (TPG). In their investigation, several of the same coins were sent to each grading service over the course of a year, each graded by all Third Party Graders sent to. In no case did the grading services agree on the grade of any given coin, and in some cases the difference in grading was seven points off. Coin World further reported that in one case ACCGS had graded a coin as "cleaned" and several grades lower than PCGS, which PCGS had not noted the same coin was "cleaned". PCGS had failed to note on their holders that thousands of shipwreck coins had not been cleaned, although the coins were in fact encrusted with sea debris and barnacles, and cleaned in acid baths. It is standard for professional dealers to note when coins have been cleaned or treated in acid baths, and not doing so can be considered unprofessional and unethical by some numismatists. Further, in U.S. Numismatics, it is standard to grade coins on a point-scale from 1 (poor) to 70 (perfect) and to note on the coin holder if a coin has been cleaned or poorly mishandled, or in some cases, to reject it for encapsulation.
In 1990 the FTC (Federal Trade Commission), which oversees business ethics and fraud, filed a civil action against PCGS alleging exaggerated advertising claims. PCGS did not admit wrongdoing, but agreed to submit its advertising for review for a period of five years. In a filing in Federal district court in Washington, the company agreed to include a statement in its newspaper and television advertising affirming that certification by PCGS does not guarantee protection.
In September 2004, members of the American Numismatic Association reported seeing counterfeit PCGS slabs at the Long Beach Coin Show. More were reported on eBay in the years following, but PCGS did not address the issue until March 27, 2008 with the following acknowledgments on the PCGS website:
- "The counterfeit PCGS holders are well-executed, but with minor differences from a genuine holder. PCGS anticipates that authentic coins will eventually be placed into counterfeit PCGS holders in the future, perhaps with elevated grades and/or inappropriate designators.
- The following list of coins and certificate numbers have been seen in fake PCGS holders:
-
- China (1916) Silver Dollar, Y-332, Cert #10712316 (valid)
- China (1923) Silver Dollar, K-677, Cert #11354470 (valid)
- China (1923) Silver Dollar, K-678, Cert #11285683 (valid)
- China (1923) Silver Dollar, Y-336.1, Cert #13835186 (valid)
- China Republic (1912) 20 Cents, Cert #21981173 (invalid)
- China (1916) Gold Dollar, Pn-44, Cert # 11072163 (invalid)
- China (1923) Gold Dollar, Tsao Kun, K-677, Cert #11354470 (invalid spec, valid cert�used above)
- US 1858-O Half Dollar, Cert #03884338 (valid)
- US 1800 Silver Dollar, Cert #03859118 (valid)
- US 1795 Silver Dollar, Off-Center Bust, Cert #22030856 (valid)
- Mexico 1761-MoMM 8 Reales, Cert #05763936 (valid)
- "Valid" means that the correct information shows up under Cert Verification."
The above listing consists of only the counterfeits known or reported by PCGS as of March, 2008. Other PCGS counterfeit holders have been reported in eBay forums and more may be reported by other firms and individuals, since PCGS anticipates that authentic coins will eventually be placed into counterfeit PCGS holders, and counterfeit holders may multiply and improve over time. PCGS offers no reimbursement liability for the prices paid for coins in their counterfeit holders. PCGS has an online link to verify the Cert numbers, however, many buyers may not be computer users or may be unaware of their link. On January 7, 2008 Numismatic Guaranty Corporation (NGC) posted a notice on their website that high-quality counterfeits of their holders had been purchased on eBay : "Most frequently Trade Dollars and Bust Dollars are found, although Flowing Hair Dollars and foreign coins have also been seen. A range of grades is also represented." Caution is advised when purchasing coins in PCGS and Numismatic Guaranty Corporation (NGC) holders as the seller can disclaim liability due to the "third party" nature of the counterfeit holder. Additionally, it may be too late to request refunds from eBay sellers before Cert numbers can be verified as counterfeits. Many coins are posted on eBay "as is" and with no return privileges.
See also
External links
References
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
