First Page
Posted 08/05/2015 1:15 pm
There are two points which should also be considered.
The first is what I call Progressive Grade Infinitude. As several folks here have mentioned, grading itself has become more and more closely defined as time has passed.
At one time, the "grades" were Good, Fine, and Mint. As the coin values increased and the number of prospective collectors increased, so to did the "grades" become more "exact". In fact, there was great debate decades ago when the term Very Fine began to be used.
The break from that simple terminology came to coins when major dealers and auction houses decided that they needed to promote coins as an investment, rather than a hobby. They could show reams of data professing the miraculous increase in value of "investment" coins, but there remained the problem of grade.
The investors had no clue how to grade coins and since a good deal of the increase in value for coins depended on the top rank for achieving "investment" status, ANACS, which had previously only given opinions as to authenticity became the first TPG.
Even after the many points in our history when "investment" coins have crashed to oblivion (think late 1980's Classic Commemoratives)there remains that upper echelon of dealers and auction houses that still use the promotion of coins as an investment vehicle rather than as a hobby only. Why not? It's pretty hard for most "common collectors" to spend many multiple millions of dollars on a single rare coin, but investors do.
As those who have no clue how to grade enter a market in greater numbers it becomes necessary to assure them as to the exactitude of an items "grade", hence value. Thus we have "progressed" to the point today that we have so many numerical grades all the way to perfection at 70.
No longer is Almost Uncirculated just AU. Now it might be 50, 53, 55, or 58. In the last few years, we have even seen the MS grades not only split into all 10 ranks, but with added *Stars* to indicate a 62* is slightly better than a plain 62 but not quite to a 63.
This is Progressive Grade Infinitude. The TPG's promote these extremely minute differences more for the selling value of the grade than for the coin contained therein.
What started as a reassurance for the investors has followed over to the "common folk". Something that was Very Fine thirty years ago may be EF-45 today, because as the grades have become more elaborate so have they changed to fit those designs. Now, even a coin graded by a TPG 15 years ago may have changed to the point that they (OPG's for example) are popped out and resubmitted.
Again, this happens in any collecting field where INVESTMENT becomes a part of the common buying and selling within a genre. Although coins were the first to become TPG prone, Comics and Sports cards soon followed suit.
Those fields have seen exactly the same problems that coins have had in the grades becoming ever more exact (color of the pages for Comics, sharpness of the corners for sports cards). They've also seen the same Progressive Grade Infinitude.
I bought and sold comic books to put myself through college decades ago. Back then, you had three grades: Good, Fine, and Mint. When news casts started using comic prices as filler, showing a picture of a Superman #1 that sold for an astounding $200, the ball started rolling as more and more people started digging out their old comics and many of them decided to become collectors rather than sellers.
It wasn't long before Comics became "investments", but only after the "grades" had increased to FA, P, G, G+, G-VG, VG, VG+, VG-FN, FN, FN+, FN-VF, VF, VF+, etc, etc. etc.
Now there are 100 "grades" for comics from their TPG's, and those 100 are even broken down with other considerations.
All this said so that it can be apparent that grades are not static. They change and progress, most notably after a field becomes "eligible" to be considered an "investment".
So for those old timers, myself included, who can't see how the grades of today are unlike the grades of decades past - that's absolutely true. They have evolved. And the TPG's for all intents and purposes have become the holders of the keys to the kingdom of grade assignment.
Sure, buy the coin, not the slab. It's said here a million times. But when it comes time to SELL a coin, especially if it is a rare or more valuable piece, having that article in a TPG will probably help it's chances of achieving a higher sale price.
Okay, that was point one - GRADES EVOLVE. I bet you forgot I even said there were two points.
The second point is the misunderstanding of what is a grade and what is condition. In the case of circulated coins, grades 58 and below. In the case of uncirculated coins, 60 to 70.
The grade, formally indicated by an abbreviated term, such as VF for Very Fine is the accepted standard for a coin in a particular CONDITION. Grade is nothing more than a SHORT HAND for the condition.
In other words, if I take the 1813 Bust Half Dollar that I received this morning and listed its CONDITION, I would say: On Obverse: rub to hair above eye remains fully separated, hair right of LIBERTY nearly separated, full bust line showing. On Reverse: Weak strike at center, full shield lines, left wing complete with no noticeable abrasion, sharp strike to outer edges. Original remaining luster in all fields and within protected design areas. Light lavender tone on obverse and reverse peripheries.
I could even take this further and whip out my Overton to give it even more details as I verify the variety (which I'll be doing very soon!).
I can't tell you what the edges look like, because it is encapsulated.
All that can be summed up in a grade of VF-35, which I agree with completely.
Taking this a step further, ANACS did us all a great disservice when they started issuing NET grades. This made people believe that the MARKET GRADE was adjusted because of condition - which it SHOULD NOT BE.
In other words, if I take a no question uncirculated coin and I stab it a few times with a pin leaving scratches that are just plain ugly, it doesn't become LESS than MS-60. The only thing that SHOULD change the grades between 60 to 70 are the abrasions and bag marks. Tone, or lack thereof, should not change the TECHNICAL grade. It might make the coin darned ugly, which will most certainly affect the VALUE, but it won't change the grade.
In the case of circulated coins, the bag marks and abrasions should NOT influence the technical grade. For circulated coins the degree of circulation as it wears the design elements down should be the only consideration in assigning a Technical Grade. Here again, if it has a problem such as a huge rim ding, or a cut across the face, or something else that is seriously displeasing, it is likely that the VALUE will decrease significantly. But the TECHNICAL grade should not be altered and ONLY the rub or wear from circulation should be considered.
So in this instance Grade is but a short-hand for condition, although Grade might need to be amended in the case of cleaned or damaged coins (detail grade).
Do you think I've had enough coffee this morning?
The first is what I call Progressive Grade Infinitude. As several folks here have mentioned, grading itself has become more and more closely defined as time has passed.
At one time, the "grades" were Good, Fine, and Mint. As the coin values increased and the number of prospective collectors increased, so to did the "grades" become more "exact". In fact, there was great debate decades ago when the term Very Fine began to be used.
The break from that simple terminology came to coins when major dealers and auction houses decided that they needed to promote coins as an investment, rather than a hobby. They could show reams of data professing the miraculous increase in value of "investment" coins, but there remained the problem of grade.
The investors had no clue how to grade coins and since a good deal of the increase in value for coins depended on the top rank for achieving "investment" status, ANACS, which had previously only given opinions as to authenticity became the first TPG.
Even after the many points in our history when "investment" coins have crashed to oblivion (think late 1980's Classic Commemoratives)there remains that upper echelon of dealers and auction houses that still use the promotion of coins as an investment vehicle rather than as a hobby only. Why not? It's pretty hard for most "common collectors" to spend many multiple millions of dollars on a single rare coin, but investors do.
As those who have no clue how to grade enter a market in greater numbers it becomes necessary to assure them as to the exactitude of an items "grade", hence value. Thus we have "progressed" to the point today that we have so many numerical grades all the way to perfection at 70.
No longer is Almost Uncirculated just AU. Now it might be 50, 53, 55, or 58. In the last few years, we have even seen the MS grades not only split into all 10 ranks, but with added *Stars* to indicate a 62* is slightly better than a plain 62 but not quite to a 63.
This is Progressive Grade Infinitude. The TPG's promote these extremely minute differences more for the selling value of the grade than for the coin contained therein.
What started as a reassurance for the investors has followed over to the "common folk". Something that was Very Fine thirty years ago may be EF-45 today, because as the grades have become more elaborate so have they changed to fit those designs. Now, even a coin graded by a TPG 15 years ago may have changed to the point that they (OPG's for example) are popped out and resubmitted.
Again, this happens in any collecting field where INVESTMENT becomes a part of the common buying and selling within a genre. Although coins were the first to become TPG prone, Comics and Sports cards soon followed suit.
Those fields have seen exactly the same problems that coins have had in the grades becoming ever more exact (color of the pages for Comics, sharpness of the corners for sports cards). They've also seen the same Progressive Grade Infinitude.
I bought and sold comic books to put myself through college decades ago. Back then, you had three grades: Good, Fine, and Mint. When news casts started using comic prices as filler, showing a picture of a Superman #1 that sold for an astounding $200, the ball started rolling as more and more people started digging out their old comics and many of them decided to become collectors rather than sellers.
It wasn't long before Comics became "investments", but only after the "grades" had increased to FA, P, G, G+, G-VG, VG, VG+, VG-FN, FN, FN+, FN-VF, VF, VF+, etc, etc. etc.
Now there are 100 "grades" for comics from their TPG's, and those 100 are even broken down with other considerations.
All this said so that it can be apparent that grades are not static. They change and progress, most notably after a field becomes "eligible" to be considered an "investment".
So for those old timers, myself included, who can't see how the grades of today are unlike the grades of decades past - that's absolutely true. They have evolved. And the TPG's for all intents and purposes have become the holders of the keys to the kingdom of grade assignment.
Sure, buy the coin, not the slab. It's said here a million times. But when it comes time to SELL a coin, especially if it is a rare or more valuable piece, having that article in a TPG will probably help it's chances of achieving a higher sale price.
Okay, that was point one - GRADES EVOLVE. I bet you forgot I even said there were two points.
The second point is the misunderstanding of what is a grade and what is condition. In the case of circulated coins, grades 58 and below. In the case of uncirculated coins, 60 to 70.
The grade, formally indicated by an abbreviated term, such as VF for Very Fine is the accepted standard for a coin in a particular CONDITION. Grade is nothing more than a SHORT HAND for the condition.
In other words, if I take the 1813 Bust Half Dollar that I received this morning and listed its CONDITION, I would say: On Obverse: rub to hair above eye remains fully separated, hair right of LIBERTY nearly separated, full bust line showing. On Reverse: Weak strike at center, full shield lines, left wing complete with no noticeable abrasion, sharp strike to outer edges. Original remaining luster in all fields and within protected design areas. Light lavender tone on obverse and reverse peripheries.
I could even take this further and whip out my Overton to give it even more details as I verify the variety (which I'll be doing very soon!).
I can't tell you what the edges look like, because it is encapsulated.
All that can be summed up in a grade of VF-35, which I agree with completely.
Taking this a step further, ANACS did us all a great disservice when they started issuing NET grades. This made people believe that the MARKET GRADE was adjusted because of condition - which it SHOULD NOT BE.
In other words, if I take a no question uncirculated coin and I stab it a few times with a pin leaving scratches that are just plain ugly, it doesn't become LESS than MS-60. The only thing that SHOULD change the grades between 60 to 70 are the abrasions and bag marks. Tone, or lack thereof, should not change the TECHNICAL grade. It might make the coin darned ugly, which will most certainly affect the VALUE, but it won't change the grade.
In the case of circulated coins, the bag marks and abrasions should NOT influence the technical grade. For circulated coins the degree of circulation as it wears the design elements down should be the only consideration in assigning a Technical Grade. Here again, if it has a problem such as a huge rim ding, or a cut across the face, or something else that is seriously displeasing, it is likely that the VALUE will decrease significantly. But the TECHNICAL grade should not be altered and ONLY the rub or wear from circulation should be considered.
So in this instance Grade is but a short-hand for condition, although Grade might need to be amended in the case of cleaned or damaged coins (detail grade).
Do you think I've had enough coffee this morning?
