GradeFlation at PCGS/NGC, so what about the mystery grades from AU58-MS63???

keets

We seem to enter into discussion about supposed grade-flation at the major services but it generally centers on the higher graded coins and better known coins coming to auction re-holdered. But what about "every day coins" like those holdered at MS65 and lower?? They get discussed but not as much and not with the same concern, probably because the dollars involved aren't the same. There does seem to be a feeling that this is a general trend, that the major services are market grading higher today than yesterday, higher in 2005 than in 1997 and so on. So what about coins that are technically About Uncirculated through mid-Uncirculated grades?? Are they being over-graded, also??

The grades through XF45 are pretty much locked in and not debateable, having certain wear characteristics that determine the grade: Are the rims full?? Is the Buffalo's horn fully visible?? How many letters of "Liberty" are visible?? Is luster apparent in protected areas??................and so on and so on, each coin easily gradeable once the individual characteristics are known. Then we come to the grades where things become hazy. If the theory holds true that PCGS/NGC are overgrading coins, wouldn't it hold true that they're overgrading the AU50's up through the higher MS grades??

There have been multiple threads about the "magic bullet" grades of AU58-MS62 where one can amazingly turn into the other depending on who's doing the grading or which holder it's in. Does that mean that trivial rub is being overlooked or judged differently?? Does that mean the luster breaks are being accepted for MS coins?? Does that mean the light contact is accepted?? Are the things which would technically call a coin lightly circulated being overlooked?? Does that mean that all the MS62-64 coins are really being overgraded and that many of them are actually AU's??

Questions, always questions. But at least the voices aren't as loud today!!

Al H.

BigGreek

I'm new so my views are less developed, but...

In my last submission I received some interesting grades. Most
coins hit or exceeded my expectation with the exception of three
coins which scored AU58 rather than the expected 64 or 63.

I wondered how I cold have missed these so when I got the
coins back today I spent some time and got a good look at
them under magnification.

You know what.. they were right.

The breaks in the luster are there.. but they are on most MS coins,
so why do these get designated AU? It turns out its not just that
there are breaks but WHERE the breaks are and HOW they were
made. That's the difference between friction and wear that graders
are trained to identify.

On the three coins I got back AU, it took me a while but I
identified the areas in the fields where the luster was just a tad
duller. These areas were otherwise clean of marks so the only
thing wrong with them was that they came into contact with
something which disrupted the luster but left the surface otherwise
intact.. wear.

I now have a better appreciation of how good a grader has to be
in his profession and how a coin can be so close to MS but still be
AU.

< this was my 500th post and I've been saving a little something
for a giveaway.. coming soon >

BigMoose

keets, around 90% of the certified Bust Halves I have seen over the last few years graded 62 to 64 had slight but perceptible rub on the high points of the coin. The services are fairly forgiving on the early series in this regard. You could say the same thing for Early Copper, Bust Dollars or almost any other early series of coins, especially pre-1834. TomT.

DHeath

Nice coin, and a good example.

Elcontador

This "no man's land" relates to coins that often did not strike up well, Capped Bust Halves being a good example.
If you look at the coin carefully, you can distinguish between luster breaks and a coin with areas that are weakly struck. I intentionally avoid MS 58-62 coins for this reason.

An AU Capped Bust Half will typically have a slightly duller luster (ie., a luster break) in areas with slight wear. If the luster is there and it is not struck up well -- in the Capped Bust Half, look at the collar, the curls, and the wingtips on the reverse -- it is an uncirculated coin.

morgannut2

I think there's some grade inflation that's even more noticable in the 60 to 63 area for Morgans. It's not unusal to see a two point jump as long as it is not a big price jump too. On a semi-key however-- they remain very strict. I agree there are some AU-58's making MS62, if the friction can reasonably be attributed to collector' mishandling; and the coin is a rare example.

SilverDollarMan

Keets, good question. Big Greek, Great answer. Thx 2 both