Why such a large disparity in values?
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I have always wondered why on many high graded coins there’s such a large disparity in ‘valuations’ between PCGS and NGC. I mean, when a coin is graded Ultra Cam 68 with NGC and DCAM 68 for PCGS there can be a $10K+ difference in valuations…. Is there really that much of a grading difference between the two services to command such a difference in value?
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Demand
Grading variance
All depends on the coin though.
It may or may not be a grading difference, but it's more about the perception of a grading difference. With that said, a lot of NGC coins with lofty grades get down crossed to PCGS, and buyers must factor that in when they are spending thousands of dollars, especially if their goals are registry-oriented. CAC helps level the playing field here.
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"Is there really that much of a grading difference between the two services to command such a difference in value"
Answer, no not really, the major reason for the divide in pricing is registry players and market perception that is reinforced by hype. The PCGS registry is dominated by very wealthy collectors many that have big egos and must have the "best". PCGS has been pushed by many PCGS only dealers as the best, this over the years has created the perception that PCGS is the best and as a result many of the really terrific coins in other TPG holders have been crossed into PCGS holders to meet the demand from PCGS registry participants.
The grading between NGC and PCGS is not that different, granted you can easily find examples in both holder brands to refute my statement, but as an overall both are very close most of the time. Market hype and registry demand have created the divide you see in pricing.
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
Take a look at this NGC “ms70” and tell me it would cross at grade to pcgs:
https://coins.ha.com/itm/modern-bullion-coins/1998-10-tenth-ounce-platinum-eagle-ms70-ngc-authentic-hand-signed-john-m-mercanti-ngc-census-46-pcgs-population-/a/63263-92071.s?ic4=ListView-ShortDescription-071515
This is like a $5,000 coin in pcgs 70. It should accurately be graded ~ms67.
Perfect example why an NGC coin should bring less than pcgs.
I certainly don't pretend to be a grading expert. But I question the wisdom of casting aspersions on the grade a coin received based on a set of photos. Statistically, it's exceedingly unlikely that NGC got it three grades wrong.
perhaps not 3, but the planchet flaw on the reverse should be a minimum 1 point...
this all said, PCGS tends to have a higher standard for high grade specimen
There are many NGC coins that deserve lower values than PCGS coins of the same grade. There are also many PCGS coins that deserve lower values than NGC coins of the same grade. Generalizations can be true, but they say nothing meaningful about individual coins.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
And I must say I always dislike when a poster presents a single example or anecdote to "prove" a point/assertion.
Well, just Love coins, period.
There are perceived value differences backed up by auction results.
Incidental data showing similarities in value do not quash empirical data over a long period of time and across series.
Look at auction results and photos and you will have a good idea of how the market values individual coins in specific grades and holders.
This is just my general impression and shouldn't be taken as an exhaustive investigation, but there's no doubt that NGC has different grading standards in some areas which can lead to differences in value. Specifically in the 45-58 range, NGC grades more on technical wear while PCGS gives a lot of weight to the amount of luster remaining. NGC also seems more generous with handing out "AU61" or "AU62" grades for nice looking coins. This doesn't manifest itself in later issues much, but for early bust coinage the difference in grade can be fairly wide and the prices achieved reflect that. There are a lot of early coins with little technical wear in NGC 58 or 62 holders that were previously PCGS 53 or 55 due to differences in luster (and vice versa).
Take for instance (not to prove a point but just as illustration), this piece currently up at Heritage: https://coins.ha.com/itm/early-dollars/1803-1-small-3-b-4-bb-254-r3-au55-pcgs-cac-pcgs-40099-/a/1371-3769.s?ic4=ListView-ShortDescription-071515
Previously NGC MS61 despite clear signs of wear, it is now properly graded as a PCGS 55 (assuming Heritage is correct in their description). That's not to say that there isn't variance in grading within the services, I've seen plenty of lusterless PCGS AU58s, just that in general NGC seems more forgiving in the AU - low MS grades for early issues.
For early bust coinage MS61 is a high grade (to bring it around to the original poster's question), so you can see why perhaps an NGC MS61 would bring a lower price if many collectors see it as a potential PCGS 55 or 58.
You have to factor when coins were graded, also. An early NGC could be better than a current PCGS.
I’ve found in one of my series, Franklin Proofs, when you look at the pops, as a generalization there are a LOT more 69’s by NGC than PCGS! As such, at least in these cases, that’s a clear explanation why a PCGS 69 would sell for a lot more than the same date 69 by NGC. As to WHY the differential in pops, that’s been addressed by others above.
Steve
My collecting “Pride & Joy” is my PCGS Registry Dansco 7070 Set:
https://www.pcgs.com/setregistry/type-sets/design-type-sets/complete-dansco-7070-modified-type-set-1796-date/publishedset/213996
It goes both ways... I bought an NGC graded 1860 $20 Lib graded AU58 that downgraded to PCGS AU55. Luckily I paid AU53 money for it so no loss. On the other hand, I purchased a MS68 Russian Ballerina gold coin graded by NGC as MS68 that I cracked and got MS69 at PCGS...
I did buy a straight graded coin in NGC MS63 that when cracked and sent to PCGS came in a details holder due to a spot cleaning that either NGC missed or ignored... Not high value but still hurts...
Buy the coin and it all should work out.