The History of Rare Coin Grading
In the early days of coin collecting, the rare coin market was limited to a small number of dealers and avid collectors who mostly traded coins with each other.
Only 3 Grades - To assist them in determining the value of a coin, three rather broad definitions were adequate to determine grade: The grade "Good" was a rare coin with most of the detail intact. The grade of "Fine" was a coin with clear detail and some luster on its surface. Finally, the grade "Uncirculated" was a coin which had never been in circulation and therefore retained its Mint State condition.
How Fine Is Fine? - As the market grew, collectors realized that some fine coins were finer than others. Some uncirculated coins rose above the rest in detail, luster, and general appearance. Soon terms like Very Fine and Extra Fine emerged as collectors sought to more sharply define the condition of their coins–and increase their value.
The Sheldon Scale - In 1948, Dr. William Sheldon, a renowned coin expert, developed the “Sheldon Scale” assigning grades from 1 through 70 to coins. His theory was that an MS-70 would be worth seventy times as much as coins grading just 1. Although many collectors agreed on the scale, they could not agree on standards . The Sheldon Scale Grade was still a matter of subjective opinion.
The Need For Accurate Grading - In 1985, a group of the nation’s leading coin experts recognized several serious problems needed to be addressed to protect the buyer. The major issue was that of grading and how to build a reliable way for collectors and investors to determine a rare coin’s physical condition or grade of the coin. Clearly, a tiny difference between an MS-64 and an MS-65 grade could account for thousands of dollars difference in price.
PCGS Is Formed - In many cases, honest dealers were caught in the middle of a dilemma. Since grading used to be based strictly on a dealer’s opinion, opinions varied widely and in the absence of a true technical standard. Over the course of months of meetings, (PCGS), The Professional Coin Grading Service evolved.
Certified & Guaranteed Grading - The advent for the third-party assessment of a coin’s physical condition, backed by a guarantee and a national network of reputable rare coin dealers provides reliable protection for rare coin collectors. NGC, The Numismatic Grading Corp. was formed as an alternate grading service to PCGS. These major, independent grading services have given collectors and investors the opportunity to participate in the Rare Coin Market with far greater security and confidence.
Sealed In Holders - All PCGS and NGC coins are sealed in a tamper-evident capsule along with its grading certificate. These holders further provide ideal protection for the safe, long term storage of both silver and gold rare coins to assure that your investment is secured away safely for many generations to come.