John Albanese is changing the coin business yet again - his fourth-party grader Certified Acceptance Corporation (CAC) is transforming to become a third-party grader in direct competition with NGC and PCGS.
In a coin sale between you and me, we are the first and second parties to the transaction. Ask someone else to grade the coin? That's a third-party grader. When CAC first came along, their business model was to review grades assigned by third-party graders (the slabbing companies) and add their seal of approval "CAC sticker" to slabs they felt passed muster - a fourth-party grader.
John Feigenbaum of CDN Publishing interviewed Albanese about the switch. Here's a Greysheet article excerpt.
The transition is a huge leap from their formal business model of adding stickers to PCGS and NGC certified coins. But it is also huge news reverberating in the coin industry. It is true there are multiple third party authentication and grading companies, but they have far and away been led by the two dominant services... until now.
For the first time since 1987 a major player has entered the coin certification business. As someone who played a large role in the creation of both PCGS and NGC, John Albanese may well be the only person who could launch a new service into this market with the credibility needed to take an important position overnight.
There are many questions to be asked and Albanese pledges to do so in the coming months, via a dedicated message board on the CAC web site.
In the meantime, CDN President, John Feigenbaum, asked a lot of them and in an exclusive conversation with Mr. Albanese earlier this week.
Here's an excerpt from the CAC press release.
There have been many rumors swirling about the possibility of CAC becoming a traditional grading service and I believe it is time to address them. Technically speaking, the transaction has not been completed yet. However, I am extremely confident that the transaction will close by the end of 2022. If everything goes according to plan, we anticipate a
in the first quarter of 2023. The new company, CAC Grading, will have the same logo and will be located in a 29,000 square ft. facility in Virginia Beach.
We will keep our Bedminster, NJ office for stickering and customer service. Your CAC member number will remain the same but there will be a new application and submitter agreement as it will be a different corporation. We will also be adding approximately 100 new partners, many you are familiar with. I will be heavily involved as the president and CEO, signing a 10-year contract and spending at least one week per month in Virginia Beach until our team of 3 world class graders morphs into an interchangeable unit. In addition, I will be available 24/7 for tiebreakers if our team can't come to a consensus.
We've already spent weeks collaborating with our grading team and I'm happy to report that we have slight differences of opinion in less than 2% of the coins. CAC stickering will continue through 2023, but our goal is to drastically reduce demand with a new pricing structure.
To watch the video interview, see:
Exclusive Interview with John Albanese on CAC Grading Launch * Oct 2022
To read the complete article, see:
CAC Makes Formal Announcement about Switch to Grading Company. Exclusive interview with John Albanese
Wayne Homren, Editor
The Numismatic Bibliomania Society is a non-profit organization
promoting numismatic literature. See our web site at coinbooks.org.
To submit items for publication in The E-Sylum, write to the Editor
at this address: email@example.com
To subscribe go to: https://my.binhost.com/lists/listinfo/esylum
Copyright © 1998 - 2021 The Numismatic Bibliomania Society (NBS)
All Rights Reserved.
NBS Home Page
Contact the NBS webmaster