NOTES ABOUT NOTES
(Q&A)/Market Commentary

Third Party Certification - Greensheet Part 2

I want to thank Jason Bradford of PCGS for his reply to our comments thru the Collectors Universe Forum. He makes some strong points that must be known and considered.

Here are our comments to Part 2 of the Greensheet Article that appears in the March issue.

Point 4 - Expansion of the Market I do agree that this has and will continue to expand the market for currency, which is good for all dealers. Expansion seems to be aimed at "Investors", not the collector!

Point 5 - More structured grading system. I am not sure that this is so important to the collector who wishes to buy a group of notes that look nice and match up well eye appeal wise. The comments made seem aimed more at selling "Investment Grade", higher end notes to investors. The thought that higher end notes can just be purchased without worrying about the grade just does not ring true! As in coins, you buy the note/coin, not the slab!! Having just seen a slabbed Gem 65 Porthole with tiny but well balanced margins - a Fr#40 with virtually no top margin in a Gem 65 holder - tells me that I must look these notes over carefully as these ARE NOT 65s!! To think that currency can be bought based soley on a grade is not correct at all! Turning it into a mere commodity is just not right!!

Point 6 - Ease of liquidity Just one question to pose here - at what level are these notes repurchased by the dealers selling them? For those owning some slabbed, high end notes, offer them back sight unseen and see what you are offered! Will the dealer buy them back or only offer to sell them for you?

I guess that my major concern is how these slabbed notes are being promoted. The thought of an MS 67 1928 $1 Silver cert at $250+ is just nuts! Or an MS 66 $1 Hawaii for $250!! It is the hype that is used to sell these notes that are really nothing special. It may be true that slabbing is here but there are still some things to watch for. Not all slabs are equal - you MUST check out the note , regardless of the assigned grade, and have enough knowledge to make an informed decision on what to buy. SLABS OFFER AN ALTERNATIVE and they must be evaluated like any other note, perhaps more so as they are in plastic and tougher to evaluate.

These are my comments - how do you feel? Thank you - TIM

I read with interest the article in the February Greensheet extolling the virtues of third party certification of currency. I do not know the individual who wrote this article but did notice that he works for a large coin company that specializes in selling slabbed currency. These points make good sense to them as sellers of slabbed currency, but not to me as a currency dealer. I will say up front that I am not in favor of third party certification so that no one will misunderstand my motives for writing this! I will address each of the points brought up in the article:

Point #1 is security - no one will buy a counterfeit note. There simply are no counterfeit notes out there to be bought! While this may apply to other fields of collectibles, this is simply not a factor in the currency market!

Point #2 is condition - notes are graded by a field of experts. I know and highly respect the persons in charge of the 2 new grading services, but who exactly is grading the notes? Just who are these experts? Have any of the services presented a list of their graders along with information about their backgrounds and years in the currency field? How many years have they spent in the currency business and how many notes have they seen? Only CGA has revealed their graders! Are we to believe that every single note is reviewed in detail by the finalizers?

Point #3 is value - for the dealer and collector. It is highly recommended that notes over $200 should be graded. Why? How does selling certified currency add to the reputation or name of a currency dealer? Are you saying in effect that after 30 years as a collector/dealer, I need someone else to properly grade my notes? Dealers with years of experience are now supposed to defer to someone else, and they don't even know who, to assign a grade to their notes? I realize that there are some persons out in the market who cannot grade, but the market will surely drive them out of business - that's how the marketplace works! These notes are a value in that the grading fee has been absorbed by the dealer? Not hardly - a grading fee will most certainly be passed along to the buyer and, in the case of lower value and lower grade notes, add substantially to the cost with no real benefit. To think otherwise is simply not true.

Collectors - I am very interested in your comments. I will have more to say after part 2 appears in the March Greensheet.

We noted an advertisement on the inside front cover of the August Numismatist that certainly caught our eye! For those with some loose change laying around, there is a new round of Binion notes being advertised. For those not aware of these notes, they were part of the Million Dollar display at the Binion Casino in Las Vegas.

According to the ad, "each note has been lovingly conserved - like a piece of fine art". They have been graded by PCGS and certified with a distinctive red label! Grades are "Apparent Choice New-63", "Apparent Very Choice New-64" and "Apparent Gem New-65".

Conserved - perhaps processed and improved??

Distinctive red label - that is a flag by the grading service to note that the note HAS BEEN worked on or fixed in some way. It is a warning - not a plus!

"Apparent Chice New-63" - please describe this grade to me!!? I do not recall seeing this grade explained or used by other dealers/collectors.

The price is not stated but should you inquire, please let me know! I'm searching the car floor and behind the sofa cushions and I'll see if I can come up with enough!!!

It seems that there is no end to the scams that are being run on eBay. Talking to several friends at a show over the weekend, we were made aware of several scams and want to let our customers and friends know about them. Perhaps you have already seen them!

SCAM #1 - bidder renigs, now you can buy! You receive an email stating that the top bidder or bidders have reniged on their bids and you, as the underbidder, can now purchase the note. They request that you send them the money and they will send the note. Guess what? There is no note and they were not the seller! Be wary of this situation and be sure to check with the real seller before sending any money.

SCAM #2 - selling other dealers notes! Scans are being appropriated from web sites, auction listings, etc. and are being offered and represented as legitimate notes. While it will be harder to detect these notes, those who have a significant presence on eBay may well recognize notes that they have seen before. The best way to counter this is to deal with well known dealers. Check feedback very carefully and do extra checking if a significant note is being offered.

SCAM #3 - NO RETURNS ALLOWED! In my mind, stay away!! A reputable dealer or seller will allow returns. While you can sometimes review what you are buying by a close examination of the scan, what about notes like Obsoletes and Fractionals that have no serial#? Put up a CU note, send a VF - what do you do? This is a situation to be investigated much further before bidding - or just stay away! No reputable person sells as is!

We are sure that there are more scams out there. If you are aware of others, please let us know so we can pass them along. The best buyer is an EDUCATED buyer!

UPDATE 9/26/06 Several persons have stolen my scans AGAIN and are trying to sell some of my notes! THIS TIME - they don't care what they sell the notes for as they want you to remit by bank wire to their account. Once you do, there goes your money - lost!! Watch out for this!

REMEMBER -- I DO NOT SELL ON EBAY!!

I guess that it was only a matter of time before the main coin grading services entered the currency grading marketplace. Their entrance now makes 6 grading services, to my best knowledge. What will their future be?

It is apparent that the 2 services picked very well qualified market professionals to run their services. I have know both of the individuals for many years and consider them to be good friends and exceptionally knowledgeable persons. What will set them apart I believe are 2 main factors: (1) Will the services be viewed as independent and free of any bias? and (2) What will be their grading standards?

It is not enough to be independent but to be perceived as independent . By preventing the graders from dealing in the market that independence should be achieved.

Strict standards and their consistent application is necessary to gain the approval and confidence of the collectors. I believe that tight and consistent standards are more important than the persons applying the standards. If the standards are in place, they will be followed!

I have been against third party grading but will keep an open mind and see what these new services have to offer. The kind of material that I offer does not need encapsulation and will not be regardless of who is grading. Mid grade type notes, nationals, CSA notes and Obsoletes are not candidates for slabbing in my mind.

We will have more to say here so please check back and give us your comments. We appreciate your feedback!

We have heard many comments over the past few months concerning the relationship of grade to price. It is an interesting point and there are many views - let us give you ours!

We believe that while there is obviously a very close relationship, we feel that grade is not the sole factor in pricing a note. Eye appeal counts for a lot, as does the originalness of the note. Pressing, repairing or processing notes certainly affect its price, also its grade. What we have seen happen is an inflation of the grade of a note in order to justify a certain asking price - IE: push the grade of an XF note in order to ask an AU price. This is where I disagree. Once a proper grade is assigned, the price might be that of the assigned grade, or even a grade higher of lower!

I believe in assigning a grade to the note - then assigning a price. If that price is commensurate with the grade, you're done. If you feel that the note is worth more than its assigned grade, then you need to explain why and give the buyer the necessary information to justify the price. Factors such as market rarity and collector demand certainly enter the equation, as does the relationship of published price guides to the real world. The grade should not be pushed, rather information provided to back up the price. This is what we have always tried to do and our customers seem to like our approach.

I am always interested in your feedback and welcome it. Please share your comments with us!

Update 5/18/05 I am proud to be a fold counter, the kind of person that seems to be looked down upon by several dealers. Examination of auction lots recently uncovered a note with 10-12 very light bends that was graded XF. To grade it otherwise would wrongly portray this note, according to the cataloger! Other notes with 3 folds were XF - how can these be the same grade? The look of the first note was very sharp indeed, but XF??? I am interested in your comments.

I cannot call up scans of the notes.

When calling up the web page you must use www. If you fail to do this, you will not see the scan icon show up at the far left of each note.

Why are there so many SOLD notes listed on your site?

Since there are so many new visitors to the web site, I feel that it is important to show the kinds of notes that I have had in the past. This provides good comparison information and helps a prospective buyer to compare my material to others and to what they are looking for. I try to clean up the SOLD notes on a timely basis.

I did a Google search and found a note but is was sold a long time ago! What happened?

Doing a search for a specific note or town will call up any old versions of the page that had that note listed. That page could be several years old! We apologize but that is a factor of the seach engine.

Do you BUY notes?

YES, I do buy notes and am anxious to know what you have for sale. I need to buy in order to have a nice selection of material for my customers. I welcome your emails and scans of notes, but please note that it is very difficult to provide a proper offer without first seeing the notes. In many cases only a price range can be given. Upon seeing the notes I will make a fair and confidential offer. Please contact me and I will work with you.

Do you sell on eBay?

NO, I do not sell on eBay but have instead invested my time and money into my own web site. While there are many good and reputable sellers out there, many dishonest persons have chosen to DUMP/HYPE their material on eBay. On my web site I publish my grading standards, my PCDA Code of Ethics and my professional affiliations and qualifications. I stand behind my material and offer a full refund, no questions asked! I do not hide behind a "moniker", I let the buyer know who they are dealing with. You don't have to grade my notes yourself by viewing a picture of a note taken on someones kitchen table!!

We wrote an article for the Greensheet on Collecting Big City Nationals in an effort to make more collectors aware of the neat and interesting notes that are available. Our feeling is that big city nationals are overlooked yet afford a great opportunity for all collectors. The 2 part article was in the February and March issues and provides much information to get you started.

We have extra copies of these articles and will gladly send you a copy if so desired. Just drop us a line and we will get it in the mail to you promptly. I hope that you will find it of interest and inspire you to add some of these interesting notes to your collection. Thank you.

We have a great new tool that we feel every currency collector and dealer should have - a powerful, portable light that can be used anywhere to examine notes. It is a quality light that uses 5 powerful LED lamps to project a deep, wide pattern of high-quality white light.

My good friend and fellow currency dealer Jim Simek found a collector using this light to examine a friend's newly purchased note and watched as they examined the note closely finding several defects that had not been readily apparent when the note was first examined. The person buying the note was certainly upset that they had bought the note based on one grade and found it to be not so. It was a several hundred dollar mistake, one that could have been prevented with the use of this light.

Ask yourself these questions: Have you ever been to a bourse where the lighting was - shall we say - less than adequate, and after returning home found that you had to do a little cost-adjusting of your purchases because of problems that you hadn't originally noticed? Have you ever viewed material where the lighting was good, only to find that you were the third person at a two-light table? Have you ever travelled to purchase a collection where the only available light was a circular fluorescent fixture five feet above a kitchen table? If the answer to any of these questions is YES, then you need an Inova X5 light to help solve the problem.

This light is portable, handy and easy to use. It employs LED technology rather than an incandescent light bulb and provides an even, true-color light source. Because of the arrangement and focus of the LED, even notes in plastic holders can be viewed with confidence. Two lithium batteries said to have a shelf life of several years are included, along with a handy carrying case. It is light and small making it convenient to take anywhere. We have tried it and it is fantastic!! We will always carry this light with us!

We are offering this light with batteries and a carrying case for $50 plus $5 postage and handling. Illinois residents please add 7 1/2% sales tax. See for yourself the quality of this light and what it can do for you. With the cost of notes and the significant price difference between grades on many notes, this light could pay for itself on your first note purchased, or - note not purchased!

2/16/04 Our new light has been very well received by both dealers and collectors! It is an invaluable tool for examining notes - don't go to a show or shop without one.

2/4/05 Over 100 lights sold and nothing but great comments. Get yours before we sell out as our inventory is down to just about 20 lights.

11/29/05 We have sold out of lights! Many thanks to all who bought one from us! Our best thank you is seeing so many collectors and dealers using their lights at shows.

12/14/05 NOTE!! Due to many requests, we are looking into ordering additional lights. They have been so well received by dealers and collectors alike. We should have more information in January so please check back here!

In our ongoing attempt to provide information to the currency collector, we have added this page to comment on the market and collecting in general and also to address questions that we have been asked of us at shows and in e-mails. We appreciate the feedback that we receive from our customers and also appreciate their questions and comments on the currency marketplace. It is our hope that our comments will be relevant and help address situations of concern.

We have a range of topics in mind and will be adding them as time permits. It is our intention to "archive" some of the commentaries so that they can be called up by the many new collectors visiting our web site and also reviewed by anyone wishing to freshen up on a specific subject.

We encourage your questions and comments as the best currency collector is a well informed one. We believe in sharing our knowledge learned over our 30+ years in the hobby and will make it available to all who desire it. If you have any specific areas that you feel need to be addressed, please let us know and we will be happy to do so.

Many collectors have asked us what kind of holders they should use for their notes. There are many kinds available and not all are safe for long term storage of your notes. We will discuss what to use and what not to use.

We do not recommend the screw down, heavy plastic holders. Not only are they bulky and take up space but they will flatten out a note over time and remove whatever embossing might be present. We feel that sealing them up is not good for long term storage.

Holders can be purchased at local coin shops but my experience shows that these are usually of inferior or questionable quality, price being the major consideration in purchasing them for resale to the collectors. PVC based holders will surely damage notes as they are made from a petroleum based material.

The holders that should be used are made of archival Mylar D, an inert material. We strongly recommend the holders sold by Denly's of Boston. Tom Denly has been selling these holders for many years and we feel that they are the best. Every note that we sell is in a Denly holder!

You can contact Tom at 617-482-8477 or write to him at Denly's of Boston, P.O. Box 51010, Boston, MA 02205. He or a member of his friendly staff can provide information on available sizes and prices. We feel that they are the best and will show off your notes very well. Don't be fooled by cheap holders - consider the investment that you have made and provide properly for your notes.

In our ongoing attempt to provide information to the currency collector, we have added this page to comment on the market and collecting in general and also to address questions that we have been asked at shows and in e-mails. We appreciate the feedback that we receive from our customers and also appreciate their questions and comments on the currency marketplace. It is our hope that our comments will be relevant and help address situations of concern.

We have a range of topics in mind and will be adding them as time permits. It is our intention to "archive" some of the commentaries so that they can be called up by the many new collectors visiting our web site and also reviewed by anyone wishing to freshen up on a specific subject.

We encourage your questions and comments as the best currency collector is a well informed one. We believe in sharing our knowledge learned over our 30+ years in the hobby and will make it available to all who desire it. If you have any specific areas that you feel need to be addressed, please let us know and we will be happy to do so.

Thank you.
Tim

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