Author
Topic: Interesting article in Financial Post:  (Read 6046 times)
eyevet
  • Wiki Contributor
  • Moderator
  • *****
  • Posts: 976
  • CPMS Life Member #101
« on: November 23, 2010, 08:32:49 pm »

Interesting article in Financial Post:

http://www.financialpost.com/profit+from+hobby/3859676/story.html

Quote
To start a coin, stamp, comic book or sports card grading service, you need a mailbox, a table, a bright light, a magnifying glass, a plastic encapsulating machine and some envelopes.

Notice that there is no mention of "expertise" in this report.


Mortgage Guy
  • Very Senior Member
  • *****
  • Posts: 579
« Reply #1 on: November 23, 2010, 09:20:58 pm »

Collectors Universe

Currently has a $3.42 Book Value W/
ROA 49.46%
ROE 73.11%
ROI 63.38%
Dividend Yield 8.64% with a 52.4 Payout ratio and no debts

For someone that's not a fan of grading notes this could be an opportunity to profit from this growing practice  :P

MG

Always Buying Any Replacements and Special Serial Numbered Notes In C.Unc+ Condition
mmars
  • Very Senior Member
  • *****
  • Posts: 1,352
  • money is gregarious
« Reply #2 on: November 23, 2010, 11:12:09 pm »

The article is written from an investing perspective.  Of course, it is not written for an audience with any experience in collecting or grading collectibles.  It is for people with more money than knowledge.  Also, it is rife with hyperbole and unfounded generalizations.  Two of my favorites:

"...third-party authentication has grown along with eBay, which despite its best efforts unwittingly provides a huge forum for frauds who turn out fake collector coins, stamps, sports cards and autographs."

"Professionally graded collectibles fetch several times the price of ungraded pieces, as buyers can be confident they're getting what they've paid for."

As an eBay seller, it's nice to know that I'm being lumped in with the rest of the fraud artists.  Thanks a lot.  Fortunately, there are still some buyers around and they actually seem willing to pay more for raw notes than slabbed notes.
« Last Edit: November 24, 2010, 03:38:16 pm by mmars »

    No hay banda  
mmars
  • Very Senior Member
  • *****
  • Posts: 1,352
  • money is gregarious
« Reply #3 on: November 24, 2010, 03:42:34 pm »

One more passing thought: grading is subjective, so how can anyone ever be an expert on subjectivity?  There is no place you can go to become a certified grading expert.  It is only after you establish yourself and the public comes to trust you that you are seen as someone with "expertise", and that is more of an issue of trust than anything else (i.e. there's no way any one person or numismatic institution can anoint you an official expert in grading... not even Jim Charlton has that power!).  So simple chronology does not allow someone to be an expert grader before they ever grade their first note.
« Last Edit: November 24, 2010, 03:51:37 pm by mmars »

    No hay banda  
harwil4u2
  • Junior Member
  • **
  • Posts: 85
  • Paper Money is Art!
« Reply #4 on: November 27, 2010, 10:01:03 am »

As a youth club director the question allways comes up "should I buy graded coins or paper money or should I buy them raw" from the kids and parents. I allways answer with "you should learn how to grade and not buy the package".

The article is all about opening a grading company and the money will flow in, build it and they will come.
 

Login with username, password and session length