Beware of Counterfeit NGC Slabs
Thursday January 10, 2008
NGC has issued a warning about a recent spate of counterfeit NGC coin holders, or "slabs." (Slab is a very widely-used slang term for the hard plastic coin holder used by grading services, such as the one in the photo.) The latest batch of counterfeit slabs, while more convincing than most, still have some easy-to-spot diagnostics, which NGC lays out very clearly on their warning page about the counterfeit NGC slabs. The coins most frequently seen in the counterfeit holders are U.S. Trade Dollars, Bust Dollars, Flowing Hair Dollars, and crown-sized world coins (the same coins which are most frequently counterfeited by Chinese scammers.) It is important to note that the counterfeiters are copying genuine NGC label information, so the coins will "check out" if you verify the codes on the slab insert label.In its statement about these bad slabs, NGC promises to have some enhanced security features implemented later this year when it comes out with its "next generation holder." It is a sad-but-true fact of modern day technology that most improvements in security are need-driven rather than proactive. In other words, companies don't spend money to make their products more secure until someone breaks the current security. (And this is true of nearly all companies, not just coin grading services.) Over the years, slabs have gone from being simple sealed plastic holders, to holders with coded inserts, holders that are harder to surreptitiously open, holders with holograms, holders that are even stronger and better-sealed, and soon we'll have the next generation, all because the previous levels of slab security have all been broken. I am very interested to see where this "next generation" will take us.
As more and more collectors rely heavily (or entirely) on the slabs and what is indicated on grading company labels, rather than evaluating and grading the coins inside the slabs for themselves, the danger posed by counterfeit slabs worsens. If someone actually spends the time and money to exactly duplicate major grading service holders as they stand today, we'd basically be back to square one in coin collecting, where the following holds true:
- Being able to grade and authenticate most coins for yourself is essential
- Dealing with trustworthy, reliable dealers with whom you have some recourse is critical
- Buying a coin based on its own merit rather than what a grading service label says is fundamental
More About the Counterfeit NGC Slabs
Photos, additional information, and key diagnostics can be found on the NCG warning page for the counterfeit slabs.Photo of a counterfeit NGC slab courtesy of Numismatic Guaranty Corporation (NGC.)
Comments
Hmmm! Grading my own coins. Back in the 80’s i started with a coin company that had an investment program — a monthly purchase of common Morgan silver dollars.
All graded by the firm at MS 65. All costing in the 400.00 range, all was fine then along comes the new grading services and their way of grading. Which after i sent in all four of the Silver dollars i bought for an opinion of what they thought about the grade of my recently purchased silver dollars. Their assesment knocked alot of the value off of the MS 65 grading that was placed upon these coins. In reality after veiwing some of NGC and PCGS graded silver dollars in mint state 65 condition, i have to conclude. My regrading of my silver dollars would be in the MS 68 to MS 69 area. They may not be proof like, but then again i’m no expert. They have frosting all the way through. Barely a an abrazion mark on them. And they are sealed in there original holders. Practicly impossible to crack open. They were not removed from the holders when they were inspected. It was cursury, and complimentary. And appreciated.
My point is i think, a second opinion would definitly be needed grading my dollars. Because i genuinly believe my coins should grade as high as i have graded them. That’s a pretty far cry from their grading opinion. And the actual grade the coins came with.
Authenticating. Another good one on me. I have that large buffalo nickel. It looks real enough. I’ve never seen a fake one, so i have nothing to compare it with. And — i have “never” seen anything like it, before. I have to leave this one to the experts.
Sure wish it was easier than it is.
I don’t buy “slabs” because I am a “coin collector”. I’m not concerned about mine being better than yours. Slabs are good if you are buying a high grade rare or scarce coin. But, why does anyone care if they have a 2006 Silver Eagle that is PR70 rather than just Proof? It is not part of coin collecting. It is directly related to profit making and status. The mint, the grading services and the on-line auctions have turned coin collecting into a modern day gold rush. Get rich quick buy selling your “perfect, highest grade possible” coins to the sucker that comes first or bids the highest. It would be a shame if your neighbor got one and you didn’t.
Susan – keep exposing the fraud and dumb out there.