Questions About PCGS Secure Plus? We've Got Answers!

Since the PCGS Secure Plus service is brand new and such a departure from "business as usual," I have fielded numerous questions about it since its unveiling March 25 at the Fort Worth ANA Money show. Coin enthusiasts are understandably excited about it, but they do have a number of questions and concerns.

This article covers the most recent update to the PCGS Secure Plus FAQ. I have provided detailed answers to what I feel are some of the most important questions we have been asked so far, and hope to put any concerns about the new service to rest.

Q: I am confused by PCGS Secure Plus. What defines a + coin? Are Secure Plus coins that do not receive the + considered dreck?
DW: For a coin to earn the + designation it has to be in the top 10-20% of that grade. We aren't talking eye appeal, although that is considered as part of it.

The coin has to meet all the technical criteria such as strike, luster, contact marks as well as eye appeal. Not just a pretty coin, but a coin that's "all there" and may have been referred to as "a liner" in the past. Almost the next grade but not quite. A + is not an eye appeal designation. A + does not indicate "properly graded." A + is something a step above. Coins that do not earn the + designation are not dreck. 80-90% of all coins in every grade will not earn the +. They are not dreck at all. There is nothing wrong with a coin that grades 65.5 - it's solid for the grade and that's fine. It's just not quite a +. To assume that something is wrong with a coin that does not have a + is completely missing the point. I think there is a firm that puts little stickers on coins that are solid for the grade.

Q: On several occasions in the past David Hall has argued against adding "PQ" or some other designation to the grade. What has changed?

DW: Actually this was the first question DH addressed during Q&A at our presentation on March 25.

There is one giant factor that has changed since these earlier comments were made: technology.

We now have technology that can capture and save all the nuances which uniquely identify each coin. This helps us recognize coins that have been altered and allows us to consistently grade all coins at these more refined increments.

It's not "all about the money." PCGS may actually be discouraging a lot of submissions from the guys that used to send coins in repeatedly. And, just to keep things in perspective, collectors may send coins in under the new program, but collectors account for a very small percentage of PCGS submissions. The guys with the largest submissions will have to change their business models based on the new program.

When I first joined the company, I must have been asked several dozen times "Don, when will PCGS put PQ on their holders?" We didn't want to simply identify PQ coins. That's kind of an emotional, eye appeal, kind of designation. We wanted something bigger and better. We wanted to identify coins that had above average or better eye appeal and also all the characteristics of an extremely high-end coin for the grade. That's what + is all about.

If you guys think about it, I believe you will realize the biggest benefactors of Secure Plus will be collectors. How many collectors have you known (maybe yourself) who have carefully put together a collection over the years, studying the series, hand selecting every coin as one of the choicest examples of the date, only to be offered "bid" or something similar when it came time to sell? Now with Secure Plus, collectors can have their coins graded, possibly receiving some + grades, and with new market values established for + grades, they can realize the full market value of their collection.

We did this because we think it will be good for the hobby, and because it's the right thing to do.

Q: Is it true that once a coin is in a Secure Plus holder its grade can never change?
DW: Coins that are in Secure Plus holders are no more "locked into their grade" than coins in a regular holder.

Every coin that is submitted to PCGS for regrading will be evaluated by our graders without them knowing if the coin was previously graded, and if so, what that grade was.

When a coin's grade is finalized by the verifier with Secure Plus, he will be notified if the coin has been previously graded and will have digital photographs that he can use for comparison. Obviously this will help us detect if the coin has changed color or been altered in some other way. It does not mean that the coin's grade cannot change if he and the graders believe it should be. I think this will actually help us assign the proper, and best, grade to every coin.

Q: What's the market for Secure Plus coins?
DW:I think the + grades offer a terrific opportunity for collectors to put together really high-end sets at prices that they can afford. Some may not have the budget to buy MS67, but they can get MS66+ – which will be nearly the quality – at substantially less cost.

+ grades will only be available via Secure Plus submissions. Frankly, we (and you) want the protection of the Secure scanning to ensure consistency and precision in our grading and to catch those who would deceive us. There are many out there who would like to see this fail. But that ain't gonna happen.

Q: Will the laser scanner be at shows so coins can be submitted under the PCGS Secure Plus tier at shows, too?
DW: Yes. Secure Plus submissions will be available at all shows.