Collectors Corner^SM: The Collectibles Marketplace

PCGS Co-Founder Gordon Wrubel Click image to enlarge.

Back in 1985, the numismatic world was dealing with myriad issues that burdened the industry, burning both collectors and dealers. Among the challenges were a growing presence of counterfeit coins alongside plenty of real coins that were overgraded or in some other form or fashion not as represented. While virtually everyone can agree counterfeit coins are bad for the hobby, there was far more discordance on what constituted a coin that graded, say, Good-4 or Mint State-65; meanwhile novice collectors and emerging dealers couldn’t always spot an alteration, retooling, cleaning, or many of the other surface issues that clobber a coin’s value and its overall desirability.

And that’s where the story about a man named Gordon Wrubel comes in. He and several other top dealers decided to tackle some of the problems that were plaguing the market. But that wasn’t what originally brought these titans of industry together. “PCGS evolved from a book project,” Wrubel remembers. “Four ‘weekend warrior’ coin dealers would meet in a hotel room two or three times a month after the bourse closed to work on our book. It was envisioned to be the ‘ultimate Red Book’ of U.S. coins and would include prices, transactions, both public and private treaty, rarity ratings, and a condition census. The data was put into a computer, and ever-growing reams of paper printouts were compiled and analyzed.”

Graders at PCGS during the company’s early days. Click image to enlarge.

Wrubel says he and his colleagues put their book plans on hold when they realized they needed to confront the problems with overgrading that began dominating the industry. “One member of the group suggested we start grading the coins, sealing them into tamper-evident holders, and guaranteeing the grade and authenticity of each coin we encapsulate,” recalls Wrubel, who added, “It seemed unconventional at the time.” But necessity is the parent of invention, and what Wrubel and his circle of entrepreneurial partners were about to do would change the coin industry forever. They pooled their money together and founded Professional Coin Grading Service. “In 1985, we saw a need in the marketplace,” Wrubel remarks. “In 1986, we addressed it.”

They encapsulated their first coin on February 3, 1986, with 32 dealers signing up to become authorized dealers with direct-submission privileges. The group had a goal of grading 3,000 coins per month. However, they really had no idea how well the newfangled concept of authenticating, grading, and encapsulating coins was going to work – would they even receive 3,000 coins for grading monthly? “Early on, not knowing how many submissions we would receive, we decided to run a special,” says Wrubel. “So, for the month of May 1986, we pre-advertised a $15 flat submission fee for any coin. The program was such a success that we were oversubscribed.”

Before long, they had a backlog of 150,000 coins that became known by the team as “The Wall.” He says, “We certainly did not want our dealer customers waiting six months or more to get their coins back! We eventually broke through ‘The Wall…’” Though a daunting mission, “The Wall” represented success – PCGS was not only accepted by the market, but the company clearly helped solve many of the problems that posed challenges to buyers and sellers on both sides of the coin case. “Our grading and encapsulation became acceptable to marketplace participants. We were exhilarated.”

The growth to come could not have possibly been foreseen. Nearly 60 million numismatic items graded with a cumulative value of some $60 billion. PCGS CoinFacts is now the largest and most comprehensive numismatic encyclopedia of its kind anywhere. PCGS Collectors Club boasts more than 30,000 members. The PCGS Set Registry, which began in the 1990s and was the first set registry to go online in 2001, is approaching 200,000 sets. Wrubel recalls how in 2020, as the company prepared to embark on its 35th year, new innovations and additional services helped drive the penetration of the grading market by multiples of what it had been just a few years earlier.

The achievements and accolades Wrubel and his team have earned over the years are well appreciated. Yet, after more than four decades at the company he helped found, Wrubel remains very much hands on with the day-to-day operations. “I now do final verification – the last check before the coins go out into the marketplace,” he explains. “When a special collection of copper coins comes in, I finalize the grades and designations.”

As busy as Wrubel stays with his 40-year-long (so far) career at PCGS, he does find time to enjoy coins as a hobbyist. When he was a child, “Gordie” loved collecting pennies. “As a youngster, whenever I had a few pennies or a nickel to spend, I would run over to the little grocery store around the corner. They had a penny candy counter, and I would load up. Later I started looking at the dates and decided to find the oldest one I could get… When I found a 1909, I was hooked!” Over time, Wrubel’s collecting habits changed, and now his numismatic savors include Colonials, ancients, and artifacts from the ill-fated 19th-century ship known as the S.S. Central America.

A 1786 New Jersey “Horsehead” Halfpenny copper piece. Click image to enlarge.

“The charm of early copper coins became the focus of my attention during my serious collecting years,” he says. “They were ‘warm’ and historic, in that they told the story of an emerging America.” Coppers remain at the forefront of what he collects today. “Currently, colonials – especially states coinage – command my attention. I am completely fascinated by Horseheads (New Jersey coppers).”

For the man who so many around PCGS affectionately call “Gordie,” the love of numismatics is eternal. So, too, is his enthusiasm for the company he helped establish 40 years ago. “I am confident our company will continue this upward trajectory going forward.”