There are many upstanding coin dealers who have their coins graded properly, advertise correctly, and adhere to the standards of the Professional Numismatic Guild (PNG). On the other hand, there are many companies and coin sellers that have their gold coins graded by a third tier company but list them as if they were graded by a top tier company, such as the Professional Coin Grading Service. This practice is considered gold coin fraud.
In order to better understand graded coin value fraud, it is wise to learn about the tiers of coin grading. There are typically three tiers of grading services that include:
- Top Tier – these grading services are considered the best and include Professional Coin Grading Service (PCGS) and Numismatic Guarantee Corporation (NGC)
- Second Tier – some services that fall into this category include the American Numismatic Association Grading Service (ANACS) and Independent Coin Graders (ICG)
- Third Tier – other services such as INB, SGS, ACG, NTC, SEGS and PCI and all others fall into this category
Because PCGS and NGC have been known to deliver consistent and conservative grading to coins, they are regarded as the top tier – with PCGS being the most respected grading service. Coins graded by these companies should be in their own company’s holder with a grading certificate.
Sometimes dealers claim that a coin is graded by PCGS, when in fact it may be in another grading company’s holder. Beware of this trick, as they may be trying to pass off an overgraded third tier coin. If you see a seller claiming PCGS grades but the coin is in another company’s grading holder, beware.
Because grading is not an exact science and the grade and certificate is an opinion, grading standards vary when certified by different services. Be cautious about purchasing rare coins and check the grades carefully. Find out if the grading service is independent of the coin dealer and look into the grading service’s reputation in the industry before purchasing the coin. If in doubt, you can always check with an independent source to make sure that you are getting what you are paying for.
If a dealer defrauded you, you may have rights. To learn more about coin grading fraud, call a knowledgeable coin fraud lawyer at the Voss Law Firm. You will receive a free legal consultation from one of our skilled rare coin fraud attorneys simply by calling 888-614-7730 today.
You can also request attorney Bill Voss’s book Coin Fraud – Is Your Investment at Risk? and we will send it to you for FREE.