First published in the June 21, 2010, issue of Coin World
The Professional Coin Grading Service suit against individuals it has named as coin "doctors" or their helpers has several potential outcomes.
For one outcome, it may encourage coin dealers to not "doctor" coins prior to submitting them for grading. For another, it may cause coin doctors to refine their techniques when "doctoring" coins.A more unpleasant scenario is that the lawsuit may shift attention away from coins being a safe and solid store of value, and turn the attention to the subjective nature of grading and the existence of a sometimes shifting standard for grading.
The definition of coin "doctoring" as mentioned in the filing is specific, yet broad enough to leave much open to interpretation as to what constitutes "doctoring" and what is more akin to preservation and conservation.
Re-engraving bands on the reverse of Winged Liberty Head dimes and creating full head Standing Liberty quarter dollars (see image above, right) are obvious forms of "doctoring," as evidenced by both general opinion and the examples cited in the lawsuit.
But where is the fine line between standard dipping of silver coins and the prohibited "treating coins with chemicals"?
The PCGS Coin Sniffer represents an effort by PCGS to analyze the surfaces of a coin to detect foreign substances. It will be interesting to read about the buybacks that may accompany this new technology, as under the PCGS Guarantee, PCGS often buys back coins that it mistakenly certified.
The names of "coin doctors" are an open secret among most dealers, and like it or not, most dealers – including many who personally disapprove of coin "doctoring" – will continue to buy and sell from the "doctors" as long as there is money to be made.
Ultimately, PCGS’s decision go after several specific dealers for a problem that is more widespread than just a handful of individuals working together to "doctor" coins may have long-term negative effects on the rare coin market by diminishing the confidence of the consumer.
But, universally positive, reduction of "doctored" coins in the marketplace will undoubtedly help the market in the long run.
