How does PCGS control grading consistency?

ColonialCoinUnion

Hi David -

I would think the hardest thing for PCGS to manage would be consistency.

What do you do to ensure that the same standards applied 1, 2, or 5 years ago are applied to coins graded today?

And does it concern you that there might be coins out in the market in PCGS holders that were graded differntly than they would be today?

Union

homerunhall

We have done several things to help us stay as consistent as possible over time.

First, we have published grading standards. The PCGS grading guide was published in 1998 and it is comprehensive and detailed. The graders understand that they are supposed to adhere to those published standards. Note that the 2nd addition of the PCGS grading guide, again published by Random House, is due out soon. Also note that we are the only grading service to publish our standards.

Second, we have a grading guarantee and a huge financial interest in maintaining consistent standards. If we fluctuate to the high side and start grading looser than in previous years, we will lose credibilty in the market place and put our valuable brand name at risk. If we flucuate to the low side and start grading tighter than in previous years, we will have tremendous financial exposure under the terms of our grading guarantee. The graders realize that their livelihood is dependent upon consistent standards and we talk about grading consistency on a continual basis. It is part and parcel of everything we do.

As for coins graded in the past, we think we've done a pretty good job. If we have made mistake, then we pay for them. It's how our business operates and it's one of the reasons we have the most credibility in the marketplace and one of the reasons why our coins sell for more money than coins graded by other grading services.

Thanks,

David Hall