2016-06-07 Tue

Collectors Universe, Inc. is a NASDAQ listed company that provides expert grading services to collectors. It was founded in 1986 by David Hall and 7 other coin collectors. Grading coins makes up for almost 68% of their business, the rest of which is banked on grading trading cards, comic books, action figures and more.

Graded coins have a better demand in the market now as buyers are more confident about investing in them. The coins are generally graded by an expert on a scale from 0 to 70, depending on their condition and then categorized as 'Mint', 'Slightly Circulated' etc. Other authentication processes are also included to ensure that the coins are not fake or counterfeited. Facts are counterchecked so that transactions are as transparent as possible.

The Company helps almost 700 U.S. dealers certify and grade their unsorted collections. Once their coins are graded, its value is bound to appreciate. CLCT makes profit from this premium. The management states that customers can expect 13-15% compound return for 5 years or more through their services.