Stickers & "+" Signs

By Steve Roach
First published in the July 12, 2010, issue of Coin World

The advent of the "plus" grade, officially recognized by Professional Coin Grading Service and Numismatic Guaranty Corp., has thrown a wrinkle into a market already trying to figure out what premium to give to coins with a Certified Acceptance Corp. sticker.

A CAC sticker on a slab means that the coin meets CAC's "strict quality standards."

The acceptance that not all Mint State 63 or MS-64 coins are alike is well-received, and the market continues to discount gold coins with copper spots and decide what premiums to add to plus and CAC-stickered coins, while balancing what collectors think of PCGS Secure Plus evaluated coins that did not receive a "+" grade.

If all of this makes your head spin, you're not alone. Consider this:

For a PCGS MS-64 Saint-Gaudens gold $20 double eagle, six distinct markets currently exist: 1) an MS-64 without spots; 2) an MS-64 with spots; 3) an MS-64 +; 4) an MS-64 CAC; 5) an MS-64+ CAC; and 6) an MS-64 in a Secure Plus holder that did not receive a plus sign.

Continuing with the MS-64 Saint-Gaudens double eagle example, one major wholesaler is selling non-CAC coins near the dealer-to-dealer wholesale bid and selling CAC coins for a $60 premium.

With what seems to be a glut of generic gold coins on the market, pieces with copper spots are increasingly tough to sell without a hearty discount. A major dealer is offering a nearly $100 discount on MS-64 Saint-Gaudens $20 double eagles with copper spots.

When PCGS evaluates a coin in its "Secure Plus" service, it places a shield in the left part of the label. A + sign is added to the grade for any coins submitted under this service tier that PCGS graders deem deserving. The market is still deciding if coins that have been evaluated in the Secure Plus grading tier but did not receive a "Plus" are damaged goods.

Coins without a + can still get CAC stickers, as PCGS and CAC are independent organizations.

Bids on the wholesale trading networks are inconsistent in terms of assessing premiums for PCGS Secure Plus coins, with the strongest market for gold seeming to be for MS-65+ Saint-Gaudens double eagles.