The real purpose behind the CAC green sticker? The answer will help you understand CAC better and anticipate what CAC will or will not sticker.
My opinion and answer is that CAC and JA wanted to resurrect a true sight unseen tradeable TPG graded coin as they were originally intended to do back in 1986 and 1987.
In this way, buyers would be willing to pay solid prices for a no-question asked as to the solid quality within the grade encapsulated coin without having to inspect the coin first . This creates a market in which TPG slabbed coins would truly trade sight unseen. Not necessarily PQ but solidly within the grade. Such coin should be at least .4 of the assigned grade and up.
Feel free to argue with me. I will not be offended.
Comments
the tangental effects of consumer protection and education are more effects of JAs approach than the business model imho.
grading ( averaging 2-3 points and often representing 10s of thousands of $)
AND the constant upward “ gradeflation “ of resubmitted slabbed coins. Theoretically, as intended, once a coin was CAC’ed, that was end of story & no further upgrading was conceivable. Whether that has in fact happened is open to debate but it was a good concept.
How is your position statement different than what I posted?
You think CAC remembers all of the coins they have stickered?
“It was a simplified agreement but flipped to CAC perspective. CAC is a dealer first and the market they created is not the spiritual successor to PCGS original mission statement from 86 as PCGS was independent. CAC is not independent of the market. “
I think JA figured out that he could have a win-win outcome in which the consumer can win and he wins also by helping the consumer level the playing field.
But the spiritual approach remains intact without having to be independent.
Another way of saying it is “what is good for the goose is good for the gander.”
But how can you account for the eye appeal factor? Many of the green sticker coins are solid for the grade but lacking visual eye appeal. JA stickers a fair amount of coins that have spots, verdigris, drab toning, spotting etc. He has an emphasis more on originality it seems except for a gold sticker, where amazing luster, toning, surfaces, color come more into play.“
Eye appeal is admittedly subjective and difficult to measure.
Many coins that are solid for the grade when viewed in person are not photogenic in a photo shoot as superior luster can be difficult to capture in a still photo especially when toned.
I believe JA felt that the combination of gradeflation and the prevalence of subpar coins in the marketplace was unfairly holding down the value of quality coins. And that collectors who tended to hold such coins, were being penalized the most.
CAC and now, in turn, much of the industry, are more likely to give solid for the grade (or better) coins their due. As a result, hopefully, gradeflation has slowed down and coin doctoring has decreased. At the same time, CAC has a ready market of quality coins it’s seen and stickered, to facilitate trading.
You stated:
I believe JA felt that the combination of gradeflation and the prevalence of subpar coins in the marketplace was unfairly holding down the value of quality coins. And that collectors who tended to hold such coins, were being penalized the most.
True...and that also killed sight unseen trading as assigned grades could no longer be fully trusted.
There wasn't much sight-unseen trading, other than for generic types of coins. I'm not disputing the fact that CAC has increased sight-unseen bidding activity (though only in it's own universe of coins). I just don't think that was the primary goal of CAC.
So I was both incorrect and correct at the same time.
MR:Given all this John, why did you start CAC?
JA: I felt we were basically in a death spiral. I saw the “C” coins dragging down the prices of “A” and “B” coins. Throughout my career I’ve always tried to buy the “A” and “B” coins. I felt that someone just had to push back. I felt strongly that the “A” and “B” coins needed to trade on their own, to be decoupled from the “C” coins. I felt the best way to accomplish that was to start CAC. Earlier in the interview I was critical of The Greysheet for contributing to gradeflation. The Greysheet changed ownership in 1984. Since then I’m glad to say there’s been a decided improvement. They’ve been much more responsive, reporting the prices as they see them.
My comment. GRADING
MR:What do you hope to achieve with CAC?
JA: We will ignore the less than “B” coins. We know it’s going to be hard but we’re barely in the first inning and have achieved some impressive success. Greysheet bids are strong since we started, but Bluesheet prices (sigh-unseen bids as opposed to the Greysheet’s sight-seen bids) have not been as strong. We’re already seeing a start to the decoupling we hoped to achieve. We expect volatility in prices; what we shouldn’t expect is volatility in grading. That’s our mission.
My comment: SiGHT SEEN VS SIGHT UNSEEN TRADING .
where did you read that, if true I have learned something very important today. I could swear it meant under graded by 2 points, my bad if I was wrong.
Thanks
Mark Feld is correct.
i spoke with JA years ago and he stated:
Green sticker is considered solid for the grade which means it is equal to .4 of the assigned grade up to .3 of the next grade up.
Gold sticker equals at least .4 of the next higher grade and beyond.