Record Profits For Pcgs

[davidrj]

Record profits for PCGS

Whatever we may think of them, slabbing makes shedloads of money for the slabbers

[RLC35]

Record profits for PCGS

Whatever we may think of them, slabbing makes shedloads of money for the slabbers

It's really strange, the operating income is up 116%, yet their stock is going sideways! It looks like there are some big bonuses being paid, with little regard for the shareholders!

[Rob]

They are in a business where the entry costs are not very high, nor are they operating in a highly skilled professional business. In short, anybody could set up a similar business and copy their proven model. Their continuing success relies entirely on the perception of the coin collecting fraternity when comparing PCGS with its peers. Stock prices will increase in anticipation of business growth.

Maybe the market is looking at the past decade or more and saying it is time for prices to take a breather. A correction would be healthy as it would enable a few people with broken stop buttons to realise that losses can also happen, either paper or real if financially constrained. Whilst this would not directly affect the prices charged by the TPGs, it would possibly result in fewer submissions as a result of lower sales. A market correction would also have to be reflected in the 'official prices' of slab grades due to a reduced demand. A valid question is whether the TPGs have ever been affected by a genuine downturn. As the last major reduction in prices was the 30-40% fall at the beginning of the 1980s, the TPG model is in danger of entering unfamiliar territory, because to date the market has either been nominally flat or increasing.

[RLC35]

The coin slabbing business is only one part of this company's makeup. They are in all types of collecting, publishing, etc...so they have a broad portfolio of business strategies, that do not depend on slabbing.

With that said, I don't care for them as a slabbing company, after the issue that was brought up on this Forum a few years ago, and their complete lack of concern for the guaranteeing of the PCGS slabbed Mule for sale at the time. Just MHO!

[Rob]

As was said at the time of the farthing mule debate. It was a mule in PCGS' considered opinion..................................................precisely. Something other individuals and TPGs are incapable of making, apparently.

A guarantee is a safeguard against their making a balls-up. They and other TPGs, of course, do not make them.

Edited February 10, 2014 by Rob

[RLC35]

As was said at the time of the farthing mule debate. It was a mule in PCGS' considered opinion..................................................precisely. Something other individuals and TPGs are incapable of making, apparently.

A guarantee is a safeguard against their making a balls-up. They and other TPGs, of course, do not make them.

...

[Accumulator]

Interesting that PCGS are doing so well. Despite their reputation as the largest TPG I had a feeling they were losing ground to NGC recently. Heritage have a tie in to NGC and must have pushed a good deal of business their way.

[Sword]

Interesting that PCGS are doing so well. Despite their reputation as the largest TPG I had a feeling they were losing ground to NGC recently. Heritage have a tie in to NGC and must have pushed a good deal of business their way.

I think NGC is claiming that they have now graded more coins in total than PGCS. I wonder how profitable is their Paris branch compared to their US operations.

[RLC35]

Interesting that PCGS are doing so well. Despite their reputation as the largest TPG I had a feeling they were losing ground to NGC recently. Heritage have a tie in to NGC and must have pushed a good deal of business their w

The Heritage business alone makes NGC more prestigeous, and really helps to stimulate there profits. I personally like NGC better than any of the other TPG's, here in the USA. With that said, all of the USA graders need to buy one of David's books on grading, as they still don't have it right!

[Rob]

I like NGC more too, but mainly for their greater propensity to mis-atttribute. Fewer potential profits are available for this reason in PCGS slabs. I concur with the idea of their acquiring a grading book or two. Cheap loupes from China might not go amiss either.

[brg5658]

Interesting that PCGS are doing so well. Despite their reputation as the largest TPG I had a feeling they were losing ground to NGC recently. Heritage have a tie in to NGC and must have pushed a good deal of business their way.

I think NGC is claiming that they have now graded more coins in total than PGCS. I wonder how profitable is their Paris branch compared to their US operations.

NGC has had the lead regarding sheer number of graded coins for many years. PCGS is the one who is trying to catch up. More important than the quantity graded though, I personally find the quality of pieces in NGC plastic to be much better than their equivalently graded PCGS brethren. Again, just my personal observations and opinions.

Edited February 10, 2014 by brg5658

[Peckris]

NGC has had the lead regarding sheer number of graded coins for many years. PCGS is the one who is trying to catch up. More important than the quantity graded though, I personally find the quality of pieces in NGC plastic to be much better than their equivalently graded PCGS brethren. Again, just my personal observations and opinions

That's true for the US I'm sure, but the observations I've seen here are that they are not so good with UK coins.

[Nick]

NGC has had the lead regarding sheer number of graded coins for many years. PCGS is the one who is trying to catch up. More important than the quantity graded though, I personally find the quality of pieces in NGC plastic to be much better than their equivalently graded PCGS brethren. Again, just my personal observations and opinions

That's true for the US I'm sure, but the observations I've seen here are that they are not so good with UK coins.

That's my perception too.

[brg5658]

NGC has had the lead regarding sheer number of graded coins for many years. PCGS is the one who is trying to catch up. More important than the quantity graded though, I personally find the quality of pieces in NGC plastic to be much better than their equivalently graded PCGS brethren. Again, just my personal observations and opinions

That's true for the US I'm sure, but the observations I've seen here are that they are not so good with UK coins.

That's my perception too.

I was referring to non-USA (world) coins in general between the two main USA TPGs. Almost without exception, when offered two coins of the same numeric grade from PCGS and NGC, I rarely prefer the PCGS example over the NGC example. I'm just talking numeric grade here, not either services ability to attribute varieties, etc. And, I'm also speaking with reference to not just UK coins, but also other European, Asian, African, and South American coins. Again, just my opinion based on my observations. Mileage may vary.

[scottishmoney]

TPG plastic does nothing for me. Someone in some oxygen and light deprived cubicle's opinion of a coin is just that. All that really matters is what I think based on my knowledge. Maybe more collectors should pony up and learn and have confidence in what they collect.

[scottishmoney]

NGC has had the lead regarding sheer number of graded coins for many years. PCGS is the one who is trying to catch up. More important than the quantity graded though, I personally find the quality of pieces in NGC plastic to be much better than their equivalently graded PCGS brethren. Again, just my personal observations and opinions

That's true for the US I'm sure, but the observations I've seen here are that they are not so good with UK coins.

That's my perception too.

I was referring to non-USA (world) coins in general between the two main USA TPGs. Almost without exception, when offered two coins of the same numeric grade from PCGS and NGC, I rarely prefer the PCGS example over the NGC example. I'm just talking numeric grade here, not either services ability to attribute varieties, etc. And, I'm also speaking with reference to not just UK coins, but also other European, Asian, African, and South American coins. Again, just my opinion based on my observations. Mileage may vary.

With USA coins I view the opposite - USA coins in a higher grade tend to be better in PCGS holders than NGC. Quite frankly PCGS is a veritable virgin whence it comes to grading British or other "foreign" coins - they were rather late to the boat.