Question For "net Graders"

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Author	Replies: 3 / Views: 972
Bilbo Pillar of the Community United States 812 Posts	Posted 02/02/2008 12:20 pm I've noticed that many of us "net grade" coins. If a Lincoln Cent is AU for wear, but has some problem (rim ding, scratch, cleaned, etc) then it gets "net graded" down to EF, or VF, or whatever. First, am I correct the idea of the "net grade" is to assign a 'value' to the coin in its current condition? Second, if the answer to the first question is "yes," how does one apply net grading to the following: Two Lincoln Cents, both with the exact amount of wear (let's go with AU-50), both with the exact same problems to the same degree. One is a 1931-S, one is 1914-S. How is "net grading" applied? Knocking the 31-S down a few grades has minimal effect on its value (maybe losing 10-20%) while knocking the 14-S down a few grades has a huge effect (maybe losing 50-80% of its value). Is this difference not a problem, as a low grade 31-S is still valuable, while a 14-S is much less so? Or is it a problem, as a 14-S in AU is worth more than a 31-S in AU, so it should remain more valuable with the exact same problems? Or do you "net grade" them down different amounts to compensate for the effect on value? Edited by Bilbo 02/02/2008 12:22 pm Report this Post to the Staff

Prethen Pillar of the Community United States 3234 Posts	Posted 02/02/2008 3:21 pm You're dead-on correct. Net grading is essentially assigning value to a coin. In fact, that's basically what grading is all about, especially from the TPGS perspective. However, in your hypothetical example, it's more about knocking down the coin enough in grade to justify a reasonable market price. You have to ask yourself, with that damage/problem, what is the coin worth? What would you buy it for? What do you think a reasonable buyer would buy it from you for? The 1931-S is a tricky one. However, I probably wouldn't not net grade it, but just devalue the heck out of the coin. That coin is very available in all grades. Therefore, who would want to own a problem one for anything close to what they could pay for a non-problem one. That's a case where you might have to reduce the price to 50-60% or so. Report this Post to the Staff
Metalman Pillar of the Community United States 7123 Posts	Posted 02/02/2008 4:24 pm when considering net grades for keys and semi keys ,like the ones mentioned ,,keep in mind that the market grading standards which are predominately used for these coins generate grades that are either at the pinnacle of the scale ,or above. so when (and if )they are net graded for problems the reduction has less impact on value . I don't agree with the way this is done but its reality . and a product of the TPGs in the hobby . Report this Post to the Staff
halfabustisbetter Pillar of the Community United States 1984 Posts	Posted 02/02/2008 4:43 pm Net grading to me is not only about a price guide, because as in your example there is a big jump for one grade on one coin but not on the other. The net grade I assign has more to do with what I think the defect does to the condition. Even if I say 'net VG' about a coin, I still might not pay VG money for it, and if I say net XF I might pay more. Report this Post to the Staff
	Replies: 3 / Views: 972

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