Why PCGS Changes Everything

Without doubt the most revolutionary aspect of investing in rare coins was accomplished through the efforts of David Hall when a true third-party grading system was developed. Such a radical idea helped the consumer in two important ways: First he could count on an accurately graded investment quality rare coin. Second, he could easily find the value of such a coin.

The grading of rare coins was debated before the advent of third party grading because each dealer applied his own knowledge. Actually this system worked fairly well as long as you were dealing with experts, but something was missing.

The more fundamental investment problem was the old system did not lead to universal acceptance of grading between buyers and sellers. This did not promote the greater audience everyone was looking for, and Wall Street needed, to begin trading in coins. In 1986 a few well known dealers decided independent grading was the best way to build public faith in coins. And so The Professional Coin Grading Service (PCGS) came into existence.

PCGS became a powerful tool overnight because they are intensely independent and not affiliated with any dealer. This assures no grading conflict. And the use of PCGS graded coins is important to investors because they guarantee the grade and back up that guarantee with cash.

And finally they are the finest grading authority known. These factors provided the investment market what it needed most. An answer to grading inconsistencies. Because PCGS uses only "world-class" graders it is easy to get buy and sell prices right over the phone! And so the market boasted a much higher level of liquidity and consumer confidence. Just what was needed for prices to increase and investors to make decisions.

The PCGS grading process is also important to understand. Every rare coin sent to them is closely examined by independent graders and sent to a "finalizer". All must agree before a coin is assigned a grade.

It is then encapsulated in an inert, hard plastic holder which is protected with a hologram in a secret process they won't discuss for security reasons! While sounding complicated it does not take long, and produces the finest investment coins in the world.

We at California Numismatic Investments believe in this system so much that we completely rely on the expertise of PCGS. We do not regrade or attempt to evaluate the assigned grade except to choose coins within the grade that exhibit exceptional eye appeal.

For real investment examples of PCGS graded coins use this link:

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