Welcome to my personal BLOG. I will use this forum to ramble on all things related to my numismatic ventures: David Lawrence Rare Coins (DLRC), DLRC Auctions & Dominion Grading Company (DGS). I hope to get feedback from those of you in the numismatic community, whether you are a retail client, fellow dealer, or passer-by.
There are so many issues in the coin business these days, it will be fun to address them in this "informal" area.
For today's initial post, I will comment on a topic that was heavily discussed in the PCGS chat room last week, while I was on vacation:
"Is there an inherent conflict of interest with DGS grading DLRC-owned coins?"
Of course there is... HOWEVER, but there are also conflicts of interest in every for-profit venture and it is up to the consumer to decide whether a dealer/company is reputable and has integrity. At DLRC we've spent 29 years building that level of trust in the coin community and we only ventured into the grading arena because we know that we can grade with integrity; especially when it comes to grading our material.
In the first two months of grading we have made numerous efforts to shield the grading process from the submission process so we really don't know when we are grading our own coins. Which is good, because we have tended to grade our own coins too conservatively for fear that we would set a bad precedent.
We have also added the letter 'D' to the end of the serial # of all coins submitted by DLRC for grading. This layer of transparency was done in an effort to demonstrate when we have graded a coin of our own. The pessimists will ask, "Could we cheat and omit the letter whether it suits us?" Of course we could, but that implies a level of dishonesty that does not exist at our company. Ask ANY employee or ANY long time customer. We play by the rules and we have built that rare company that believes integrity and honest dealings will allow us to rise above the competition in the long run.
Well, that's it for tonight's initial ramble... I will respond to any and all polite questions and I will also be happy to answer to any industry-related inquiries as well.
-John
About Me
- John Feigenbaum
- www.davidlawrence.com, United States
- Thoughts and perspectives on the rare coin market
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9 comments:
John --- Thank you for your candid sharing. I am a bit surprised that there are no replies yet...
I have a question... have you begun the task of getting exposure and recognition for DGS with the Grey Sheet, Heritage/Teletrade, Ebay?
All the "best" grading in the world won't matter much if the best DGS coins get crossed to other holders due to lack of market acceptance.
Also...if I may...a comment...I saw a few of your slabs...please do something about the label...with all due respect, it is not very professional looking and could use some design work...
Respectfully...
Larry Greenstone
Larry, Thank you for your reply. I have received a few personal emails but this is the first official BLOG response. Very exciting... To answer your question, the answer is "not yet". I feel that it would be premature at this time to petition the major auction houses until we get enough certified product out into the marketplace to support the request. I anticipate that we have graded 5000 coins by year's end and our Visual Population Report will be really robust by then.
I guess you could say that we are using a grass-roots approach to industry acceptance. Starting with DLRC (of course). But we have be accepted for listings on coinwants.com (a nice, ebay-like web site that was launched recently); ML Auctions (Legend Numismatic's live auction platform); and this list will grow as time goes on.
The current focus in our early stages is to get the grading right, and consistent. And I feel that we've been doing a good job in that department. A great indicator is that DGS coins are selling very well in our online auctions and via retail. The coins and grading speak for themselves and I think the collector community will come to positive conclusions quickly.
In answer to your holder question, I'm not sure if you've seen a holder in person, but frankly, we all like the holder and submitters have been pleased as well. I personally designed the label, and while I think it could use some improvements, I feel that it is the best label on the market. We put more (relevant) information on our label than anyone else including the actual country of origin. NOT EVERYONE IS A NUMISMATIST and I find it amazing that other grading companies don't even specify what country a coin comes from; or what series it's in.
That said, I plan a version 2 of the label in the next 3-4 months.
Stay tuned and please SUPPORT US and tell a friend. We will only succeed with the support of the numismatic community. I'm not going to call any TV channels to order modern coins from me...
You are getting any negative comments on both coin forum boards from the no-nothing, nabob, nincompoop, naysayers who always have an opinion but possess no working brain, as we know it.
This bad press is taking it's toll on the uninformed, however. You need to and may be aware of this already with it's implications to your laudable efforts to start a new grading service, which I applaud. I also appreciate your awareness of the "not at arm's length" issue with this new business.
Most people forget also that Heritage is a large stockholder in NGC, plus HRH owns his own coin dealership in addition to running PCGS, as well as, formerly owning B&M (no conflict of of interests there!).
I am still a loyal customer and wish you well.
Oldtrader3
John,
I think the blog is a great idea and am sure it will catch on. I have a question for you on grading, what do you think of the new "cac" designation and do you think we will have more "4th" part graders? It seems a bit redundant to me, why do we need a grade of a grade?
LSUANDANA--
Thank you for reading and responding to my posts. I have found CAC to be a net positive for the coin business since it's inception.
For starters, I haven't personally heard from any collectors who feel otherwise. John Albanese has structured the service as a "positive" influence. Coins that don't make the "sticker" do not get marked so there is not a stigma to them. In our auctions, we see a trends where coins with stickers sell faster than those without. I think it simply adds to consumer confidence. Coins without stickers still sell just fine, but the sticker "doesn't hurt". The CAC company also makes a market in many CAC stickered so it adds a level of liquidity as well.
As to whether more of these "4th party" services will pop up, I'm not really sure. Albanese is one of the most respected professionals in our industry with good reason; he founded NGC years ago and has handled hundreds of millions of dollars in coinage. Those of us on the "inside" know his integrity to be among the very best in the industry -- and he's been around a long time. By virtue of that I think he is uniquely qualified to perform this service.
I will add the I've always advocated to any collector that he/she should develop a relationship with one or two dealers so you can get good, trusted advice. This dealer, whether it's DLRC, or whomever, should also serve as your 4th party grader. I reject many coins for my personal clients. The funny thing is...not many people take the time to ask.
Hi John:
I have two questions.
1. Does an MSxx coin with light markings from an album slide lose its MS designation? If so, why should they be treated differently than other mis-handling deficiencies such as bag marks, etc.?
2. I'm having trouble assigning a grade to my 1892-O Micro-o half.
The PCGS price guide reference page for this coin has an image attributed to David Lawrence.
It isn't the one I found in his archives.
However, it is virtually identical to mine. Could you tell me the grade for that coin?
Thanks.
Jim T.
Jim-
Thanks for writing.
1. Depending on the severity of the album slide markings the net effect on a grade can be anywhere from a few points (i.e. MS65 to MS63, MS63 to MS60, etc). The major grading services may no-grade a coin with severe slide marks. At DGS, we would possibly use the designation of "scratched", or "damaged" depending on our assessment.
2. There is no way to accurately grade a coin via photo, or prior reference in a book. Please submit the coin to Dominion Grading (DGS) and we will give it our utmost attention. I would even like to grade it as part of our "Signature Series" since it's such an important collector coin.
Thanks again,
John
John,
Going into the ANA Money show, what do you think are some under-rated areas where coins can be found and bought at the show, commems? modern proofs etc? Also, as a collector and member of the ANA should I care about them settling thier lawsuit and do you think this finally means the politics of the club will be quiet for awhile?
I've given this a lot of thought and, all I can tell you, is that I've never attended a show looking for a specific coin, or coins. Opportunities don't present themselves that way. I would suggest keeping an eye out for interest, coins that are fresh to the market. Also, I think the best opportunity afforded by the ANA show is the access you have to all the major (and not-so-major) dealers. It's the one show everyone attends and I recommend getting to know the dealers, and the kinds of coins they carry.
As far as the ANA lawsuit is concerned, I have very little opinion. I'm really not sure what the heck is going on over there in law suits. Sadly, I feel the organization has been in decline for over a decade. They've lost some great people who really cared for the organization. I hope Larry Sheppard can right the ship. I certainly wouldn't hesitate to support them, or recommend that others do so. They, and the PNG, are important organizations in the numismatic community.
Please stop by and see me at the show!
-John
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