Coin Grading: Is it Right for You?

Have you ever been to a coin show and saw coins that were encapsulated in those strange plastic holders? For the new numismatist, this could be a strange sight. These odd plastic holders are called “slabs” and are issued by coin grading companies in order to protect the integrity of a graded coin. In the Numismatic world, there are three grading companies that are considered to be on the top of their game. Every collector has their own opinion as to which grading company is the best and this will not be a debate on the best grading companies!

If you’re considering having some of items graded by a professional grading company, consider a few things.

Date of the Coin- If you are in possession of any key date coins, there is no question that it should be slabbed and professionally graded, regardless of the condition of the coin. For example, a 1916-D Mercury dime in G-4 condition that is “raw,” (not slabbed) is worth considerably less than a slabbed example. That being said, if you are contemplating having a 2009 Roosevelt dime slabbed and graded, it would not make monetary sense to do so, as the cost of grading would come out to be more than the coin is worth.

Condition of the Coin- When deciding which coin in your collection to have graded, consider the condition of the coin. A coin like the 1909-S VDB Lincoln cent or a 1913 Liberty nickel, are worth having graded in any condition. Conversely, a 1909 VDB Lincoln cent, without the “S” mintmark, is probably not worth having graded if in less than uncirculated condition. That being said, many collectors do not feel it necessary to have common date coins graded and slabbed, unless they are in uncirculated condition.

Now that you have identified the coins that you wish to have graded, it is now time to consider which grading company you want to use. The three companies which I will be talking about are considered to be the best in the business and are highly regarded in the numismatic community. They all look for the same characteristics in a coin, Surface, Color / Toning, Marks, Strike and Eye Appeal.

Numismatic Guarantee Corporation (NGC) - NGC was founded in 1987 and is located in Sarasota, FL. NGC graded coins can be identified by slabs with white inserts. Labels are primarily white with a thin gold stripe running along the bottom of the label.

“NGC assigns a plus sign to coins at the high end of their assigned grade, approaching the quality requirements for the next grade. In addition to their superior technical merit, coins receiving a plus designation must have above-average eye appeal.

NGC assigns a star to coins with exceptional eye appeal for their assigned grade.

Eye appeal is the most subjective attribute of a coin, but there are norms and standards shared by numismatists. Exceptional eye appeal may include attributes such as vibrant, colorful toning; intense luster; or, in the case of Proof coins, especially strong cameo contrast. To receive a , coins must be free of any obvious planchet irregularities, and display no bothersome spots or blemishes. Toned coins can be of a single color or multicolored but cannot have any areas that are dark brown, approaching black.”

Professional Coin Grading Service (PCGS)- Founded in 1985 by a small group of coin experts, PCGS boasts having graded over 20 million coins with an estimated value of $20 billion. PCGS is a subdivision of Collectors Universe, Inc. which is publicly traded under the ticker symbol, CLCT. PCGS graded coins can be identified by their clear plastic holders.

American Numismatic Association Certification Service (ANACS)- Touted as America’s oldest coin grading service, ANACS was founded in 1972 by the American Numismatic Association with the mission to get rid of the counterfeit and altered coins that were plaguing the coin community. This was a time when many people could not be certain if the coins they were purchasing, or even selling, were genuine or counterfeit. Something had to be done to protect and uphold the integrity of the coin industry, especially if it was to grow into the mainstream as a hobby and a business.

ANACS slabs can be identified by the clear holders with blue labels.