I think glassmancanada has hit some very important things here.
1. Coins and banknotes are like apples and oranges. The factors affecting grading are very different. This we know is true.
2. Profit/Investment is a motive for many people (at some point or another).
3. If you knew that you could slab your notes, -- even to a non-recognized standard, and get a better price for them... what would YOU do (if you were profit driven)?
4. Look at coins: grading
in theory should be uniform between all parties, for the same coin. We know there is discrepencies, even within the companies. As soon as there is a second person slabbing notes and grading them as a service, then we have the same situation as coins. This is because we are people with opinions, and not robots.
5. You as a collector and a trader... are you excited to meet the person that wants to trade with you, only to find out that they are only buying/trading for slabbed and graded notes? Does it make sense to you that the same quality note, will fetch a different price because someone offically graded it? Do you need to have that certification to know that it is the grade that it is? Does that mean to you that it is accurate? Does that mean to you that it is worth more? Does that mean you will be paying more? Does that mean make it any better of an investment? It is all relative! The people that capitslize on this are the ones that are taking raw notes and slabbing them with grades "officially".
6. You as a small time seller... Are you excited to have dealers tell you that they can only offer you $80 for certain note, instead of $100 for the same quality note that is slabbed/graded?
7. You the dealer... are you excited to have the opportuntity to under pay for notes, because they do not hold some person's (or team of persons) professional certification? Are you excited to have the opportunity to inflate prices because of a third party grading service? Are you wishing that it was you that set up this grading service-- think of all the un-slabbed notes out there.
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The profit from providing the service alone... think of how much that could be? (what is the motive here?)
8. A little bit of "Caveat Emptor" needs to be recognized (buyer beware). Any buyer should do some research onto what they are buying. For this, I am referring mostly to that on-line auction house. You wouldn't buy a gold chain without checking it out first, nor would you do that of a diamond. Why would you do that with a note? All three are investment vehicles, shouldn't you be checking into your investment? (Whether the payoff is finacially
or through personal satisfaction, it is still very important). This actually applies to any grading system that is out there...
9. You have the book, which details grading, and explains the details that should be listed. Do you think it is necessary to have to have someone "
authenticate" your grading,when you abide by the Catalogue standards?
10. I wish I had this idea first, I would be rich
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All I want to do here is give some questions to think about. What will be the impact of the hobby? Is this the start of things getting out of hand? What will this do to the market? Think of both sides, demand and supply, and the motives of the people involve. This will benefit some, and hurt others. Where will you land when this thing takes off the ground (and you get pushed out of this rocketship)?
I commend glassman for addressing this issue in a forum like this. It is touchy, but we are all adults here and can remain fair and objective. I too, welcome replies. I write this from the stance of someone who collects what he can when he can afford it. I make no claims of myself being a grading expert- I am learning all the time. but, the point is, we need to try to look at all sides.
In my opinion, this other system will only muddle clarity. Especailly since the grading systems that are out there are like comparing Standard to metric. When side by side, a 10 does not equal a 10. The fact that it is not recognized by the CPMF or the charlton really doesn't mean anything-- it still has effect. What is happening here is that people are being exposed to it and the contradictions in grading terms (and numbering grades), which leads to there being followers of that grading system. This then translates into the possibility of two schools of collectors (at least two), creating division due to the non-standardization of grades, and the mere fact that there is a supposed extra "weight" of truth behind notes that are slabbed and graded. (Think of what has happened to coins?)
The question: Where do you think this will take the hobby?
Hudson
PS: Finally, here is one of my favorite examples. I have "whited out" the grading service. Have a look in the Catalogue for the coin grading scheme...and evaluate whether or not this is what it the label says (in grade). Can anyone honestly say that they believe this possibility will not occur in banknotes? I would not like to be on the recieving end of this one, that is for sure.