Are Gold Coins Graded Differently Than Silver Coins?

Typetone

Here is a recent exchange I had with David Hall on the Q&A forum. Does anyone have any thoughts?

Gold Grading Link

Steve27

My impression was that a gold coin with the same number/size marks as a silver coin of the same size would receive a higher grade due to the metal being softer. I will add that I find this to be a resonable practice. What I don't understand is why CC Morgans are graded differently than other Morgans, but that's a different question.

joejeweler

CC Morgans or key date anything.........seems to me "market grading" takes over and the technical grade is secondary. Guess the grading services (at least the ones that "guarentee" their grades) don't want a future liability in their respective holders. With keys it can get real expensive ........quick!
Joe T

Zerbe

Wednesday March 26, 2003 2:03 AM (NEW!)



Hi Greg...This is a good question that I really haven't thought about before. It is definitely true that gold is the softest metal that is used for coins and gold coins pick up marks very easily. I do believe that the basic standards are the same. Two similar design and size coins I can think of are the Morgan dollar and $20 Liberty. I feel that marks-wise a 64 or 64 Morgan looks very similar to a 64 or 65 $20 Lib.
I think conceptually gold and silver grading standards are the same. I might be wrong...perhaps you could start a thread and get other people's opinion.

David

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Greg, I was very surprised when I first read Davids' answer yesterday. The part where he says< "I might be wrong">. Why would one of the foremost graders and owner of PCGS make a statement like that. It just seems to me that he should have a strong, more positive opinion on this question. In his defense, maybe it was late at night when he made that statement.

coinguy1

My perception/experience is that the standards are the same.

Zerbe, regarding your surprise at David's answer - I can't speak for him, but, it is possible that he grades gold the same as other coins, but simply does so without thinking about it. Hence, the uncertainty contained in his reply. I appreciated his candidness, by the way.

When I graded at NGC, I didn't think to myself, "I'm going to grade this gold coin the same as I would a similar sized silver, nickel or copper coin". I just did it (hopefully!).

Zerbe

Thanks Mark>>>>>>>Makes sense

BillJones

I agree with Mr. Hall. The standards for gold and silver should be the same. Despite the fact that gold is softer, we should not lose sight of the fact that Mint State means surfaces that still show the luster and flow lines that were on the coin when it was struck. Allowances are made for bag marks and spotting, which accounts for the 11 Mint State grades.

If after applying those standards we find that there are very few truly Mint State gold coins as a result, that is just a reflection of reality. In that case gold coins will be scarce and expensive.

Unfortunately both services “market grade” many gold coins from 1795 to the 1860s. One would be very hard pressed to find a true Mint State gold coin in holders that are marked from MS-60 to even MS-63. The prices have come to reflect this because the numbers do seem low for gold coins in those grades until an experienced grader sees what one GETS for coins in those holders.

Recently I purchase an 1834 No Motto $5 gold in an NGC MS-61 holder for myself. It was really an AU-55 coin, but the coin was really choice compared to what one sees for the Classic Head $5 gold pieces in the lost Mint State grades. Breen wrote years ago that true Mint State Classic Head gold coins are very scarce, and I agree. The few true Mint State examples that I have seen were in MS-64 or better holders. Yet for some reason the grading services seem to feel a duty to put Mint State marked examples on the market.

Typetone

Bill:

Great analysis.

Are there any more informed opinions on this issue?

Greg

vam44

The part of HRH`s answer-"I think conceptually gold and silver grading standards are the same.I might be wrong...perhaps you can start a thread and get other people`s opinion." bothered me.

I must say that I was expecting a more concise answer from one who pioneered the coin slabbing industry.

redhott

I have always graded all metals the same. Never gave "soft" gold any consideration, since I don't poke my coins with a stick. Grading results from the different services have been consistently similar with my expectations. To me, that suggests they haven't graded gold differently either.

darktone

I think all series are graded to different standards. Gold coins in grades of 60-62 can look very rough to someone not used to looking at these coins. mike