There is nothing quite like the feeling of sending in a “raw” coin to a third-party grading company, such as PCGS or NGC, and receiving it weeks later with an official designation about its mint or proof state, along with other attributions (varieties and the like).
You may notice that I am not saying whether the feeling is good or bad. It can be either or both.
We’re adding a column on third-party grading in Coin Update to help you feel good about your holdered (or “slabbed”) coins and to feel bad less frequently, making you a better collector or savvier investor in the process.
Grading is subjective. How many times have we heard that? The truth is, grading is subjective to a point.
Let’s illustrate that. A Lincoln cent is designated by the color of its metal, with “red” being the most desired attribute, followed by “red-brown” and “brown.” You wouldn’t anticipate a top-tier grading company—PCGS, NGC, ANACS, IGC—to dub a brown or a red-brown coin, red.
I’ve seen bottom-tier grading companies call a brown coin red-brown or red if there is even a hint of the original copper luster.
Technically, an uncirculated “red” cent should be as new as the day it was minted. That could be a bad day (MS-60 to 62), an average day (MS-63 to 64), a good day (MS-65 to 66), a fabulous day (MS 67-68); or a miraculous one (MS69-70).
You wouldn’t expect a top-tier third-party grading company to inflate an MS-60 cent by three or more grades, to MS63 or higher. But bottom-tier companies might inflate the grade by five or more points, especially if the cent is red.
Why the discrepancies? It’s business, not personal. The top-tier companies earned their reputations because they are more objective than the others. They bank on objectivity, literally. Others companies are content to inflate grades because they want to please the customer who patronizes them.
But if you’re a buyer, you may suffer remorse when you learn that your over-graded 1972-S MS 66 red cent is not worth $300 but 6 cents, because it is MS63.
If this sounds like a commercial for PCGS or NGC, rest assured that I have my own beefs with them. I’ve sent in error and variety coins to NGC, only to get back the coin graded in mint state but without the attribution.
That has happened to me more than once, and I’ll discuss a recent case in an upcoming column.
As for PCGS, since it started slabbing as “genuine” coins it would have returned in the so-called “body bag,” or plastic flip, I’m thinking it uses that designation too often when there is a question about a coin’s luster or tone.
We’ll look into all of these issues in Coingrader Capsule, to appear at least monthly in Coin Update.
We’ll not only look into grading, but also at coin collecting topics in which the grade, condition or attribute of a coin plays a role, especially in online bidding, an increasing numismatic phenomenon.
And we’ll do so in “capsule” or summary form so that you get concise, factual information, as you’d expect from Coin Update.
Related posts:
Looking forward to reading you article…
Neal
I enjoyed as well as agreed with your Third Party Coin Grading article. I have sent several coins to PCGS and NGC in the past and have had mixed feelings with the graded results. Sometimes I’m surprised when receiving a coin graded MS70 and/or PR70DCAM. Other times a coin will be returned and slabbed a grade lower than expected! However, my feeling is that buying and selling graded coins (from PCGS and/or NGC) “unseen” is much safer when compared with buying and selling in the past… before third party grading.
Terry, I agree with you on all counts. On the one hand, I’m usually surprised with grading from the major companies–sometimes pleasantly. But usually there is that mixed feeling you describe. However, your sight-unseen comment is true. I buy a lot of “raw” coins, and consignors usually inflate grade or hide flaws.
The larger dealers that send in several hundred coins at a time seem to get higher graded coins back than the small collector that sends in just a few. No doubt they get a much better deal on prices for grading too.
Sorry, people you are missing the point all large companies due one thing well; THEY GENERATE FEES. Banks, credit card companies, NGC, PCGS THE GOVERNMENT(taxes) are all the same fees, fees,fees! I’m sure if I pay enough in fees I’ll get a farsighted grader as well ; um lets see every 10th sliver eagle is a 69 35th a 70 or was that 40th? Hey chuck, “what fee schedule are these guys currently rated at”? Wow! I didn’t think anyone else used MNS’ fee plan, better make that last one a 70. Seated Halfs, WB #’s what, Barbers,THE COMPLETE GUIDE TO what? DAVID who? Please don’t even get me started on the S.S. SUNK! The word for the times is FEES!!!
THANK YOU Robert T Jenkins : That will be $24.50 ,credit card or paychum?