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Professional Coin Grading Service's recent announcement that it will be changing its guarantee may have wide-ranging implications for collectors, especially those who collect high-end world and United States and World copper coins.
First, PCGS now limits the guarantee on non-U.S. coins to $10,000 per coin, with a limit of $1,000 per coin for Chinese coins.
Changes to its guarantee of color for copper coins could have broader implications. PCGS states: "Since environmental factors can create changes in the color of copper beyond our control, we will not be guaranteeing the color of copper coins graded or sold after Jan. 1, 2010."
Numismatic Guaranty Corp. continues to offer a limited guarantee on copper color for 10 years post-encapsulation.
For many Mint State Lincoln and Indian Head cents, a red designation, even if the actual coin is red and brown in color, adds value.
A PCGS press release of its top 12 rare coin buybacks – coins it purchased back pursuant to its grading guarantee – listed three copper coins including a 1969-S Lincoln, Doubled Die Obverse cent, graded Mint State 65 red that "turned" color in the holder and that PCGS purchased for $80,000. The subsequent PCGS grade after the color-change was considered was MS-64 red and brown.
An 1899 Indian Head cent graded Proof 69 is one of the more famous PCGS buybacks. Post-grading, the cent developed a huge copper spot that covered Liberty's head. PCGS bought it back in February 1988 for $50,000.
In April 2004 PCGS bought back a 1963 Lincoln cent, graded Proof 70 deep cameo, after the cent developed multiple spots, unacceptable on a presumably perfect coin.
Those who purchase high-end copper coins are often well-aware of the dangers inherent in their delicate surfaces, and with PCGS's modified guarantee, they have one less safety net.
PCGS noted in its press release that in its 24 years of business, it has paid out more than $7.3 million under its guarantee. With the new limitations, will the market for high-end copper coins suffer?
PCGS again lives up to its name as an innovator in the field of coin collecting and grading...innovating your money into their already deep pockets.
First, PCGS now limits the guarantee on non-U.S. coins to $10,000 per coin, with a limit of $1,000 per coin for Chinese coins.
Changes to its guarantee of color for copper coins could have broader implications. PCGS states: "Since environmental factors can create changes in the color of copper beyond our control, we will not be guaranteeing the color of copper coins graded or sold after Jan. 1, 2010."
Numismatic Guaranty Corp. continues to offer a limited guarantee on copper color for 10 years post-encapsulation.
For many Mint State Lincoln and Indian Head cents, a red designation, even if the actual coin is red and brown in color, adds value.
A PCGS press release of its top 12 rare coin buybacks – coins it purchased back pursuant to its grading guarantee – listed three copper coins including a 1969-S Lincoln, Doubled Die Obverse cent, graded Mint State 65 red that "turned" color in the holder and that PCGS purchased for $80,000. The subsequent PCGS grade after the color-change was considered was MS-64 red and brown.
An 1899 Indian Head cent graded Proof 69 is one of the more famous PCGS buybacks. Post-grading, the cent developed a huge copper spot that covered Liberty's head. PCGS bought it back in February 1988 for $50,000.
In April 2004 PCGS bought back a 1963 Lincoln cent, graded Proof 70 deep cameo, after the cent developed multiple spots, unacceptable on a presumably perfect coin.
Those who purchase high-end copper coins are often well-aware of the dangers inherent in their delicate surfaces, and with PCGS's modified guarantee, they have one less safety net.
PCGS noted in its press release that in its 24 years of business, it has paid out more than $7.3 million under its guarantee. With the new limitations, will the market for high-end copper coins suffer?
PCGS again lives up to its name as an innovator in the field of coin collecting and grading...innovating your money into their already deep pockets.
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