EAC grading Versus Market grading..........why the big difference?

goose3

In my thread about my chain cent I just bought there were some comments about market grading and EAC grading. I added a question to the thread but it got buried.

I am curious why there are such large differences in grading such as Ira points out in his post. quoted here. Are EAC grades always more strict? why?

"None of the grading companies use EAC guidelines for early copper, but the fact is, a decent early copper will sell for well over Greysheet prices, well over, if you use EAC grading as the criterea for determining price. I just sold a very nice NGC graded AU-55 S-76b, probably the most common Liberty Cap Large Cent. By EAC standards, it would grade EF-40 recolored, but the dealer who purchased it, a well-known EAC member/ dealer and with a huge following, after about a 10 minute study, paid a bit over double Graysheet for an EF-40."

Here is the original thread

Lakesammman

When I first got back into coins about 10 years ago I joined the EAC. I had a interest in large cents. After studying the available material, talking with members, paying attention, reading auction catalogs, attending auctions and looking at coins etc., it became apparent that grading large cents by the EAC is a bunch of mumbo-jumbo by those "in the know". It's designed to buy coins on the cheap (vague downgrades) and sell them at a premium (vague reasons why it's a great coin).

There is no good reason why the EAC grading couldn't be understandable and codified, if it had legitimacy.

jadecoin

The differences aren't that great until you reach into the higher grades, say XF-40 and up. The theory behind the EAC grades is that a coin at VF-30 is worth 30x a coin at basal ("1"), and 10x a coin in AG-3. Market grading does not reflect that standard - it is based on ANA guidelines.

Jade

ANACONDA

EAC grading Versus Market grading..........why the big difference?

Good question and i can't answer it.

I can tell you that only on very rare occasions can i buy a slabbed ("over graded" according to EAC standards and EAC guys) coin from any of the guys who sell only copper. And i pay good premiums for good material. And i love early copper. In the past year i have sold a 1795 Cent in PCGS MS 65, a chain cent in pcgs au 55, and many, many other fine early coppers.

I don't think that EAC grading has been concocted so they can buy stuff cheap although i can see why Lake said what he said - the EAC grading system is really difficult to understand ("skudzy"?) and the EAC guys disagree about its interpretation as much or more than we normal folks do. (We grade wimmin on a scale of one to 10...coins are more complicated than a woman???) I think that guys that have an interest in copper are some of the most pasionate and intelligent collectors who simply just don't like numbers to describe coins.

While they are indeed pasionate and intelligent, i for one can tell you that the dealers who service this market are not doing so because they want to make a lot of money. They do it, in my opinion, because they are turbo copper collectors who simply love early coppers and everything having to do with them...and you've got to admit, they are cool especially those made before 1800.....

For what it's worth, I'm a member of EAC. I make fun of us/them all the time and some of them laugh with me and some of them grind their teeth to the gums. Most of the guys buy very, very carefully. They are putting together collections and plan on taking most of their life to do it.

adrian

goose3

some good points.
anyone else?

OnlyBuffalos

EAC grading has been in existance for many years and has stood the test of time. It has not had the problems of market grading nor grade inflation. It's primary intent is to assign a numerical net grade to a half cent or a large cent. It is a grading system specifically for the afore mentioned copper coins. There is a consistency in NET grades that is desired by copper collectors.

My experience with the very large majority of EAC dealers and collectors has been highly positive. They are very ethical. If one needs to know the grade of a particular copper coin and does not want to trust the EAC grade assigned by a dealer, there are several esteemed veteran collectors who will provide this service for free or for a very low fee. The EAC collecting fraternity is small enough that anyone who deals unethically is soon discovered and "outed".

It is very true that EAC graded coins are more critically looked at and severely graded. This is usually only a problem with non-EAC members. Why, I don't know. If you buy an EAC red coin it will be red. If you buy a net 45 EAC coin, it will likely be a PCGS 50 plus coin. Don't really think that should cause any grief for anyone. The price for the coin is determined by what someone wants to pay and not by the EAC or PCGS grade, which is as it should be. Buy the coin and not the grade.

ANACONDA

"It has not had the problems of market grading"

Yes, EAC standards solved the grading problems for early copper.