Coin Values

Probably no other subject has been more hotly debated in American numismatics by collectors, dealers and investors than grading. Since a dealer first charged more for one specimen of a coin than for another of the same type, date and Mint mark simply because the second had less wear or more detail than the other, there has been controversy.

Read about, and view examples of the various coin grades

The grade of a coin (note, medal or token) represents what professional numismatist and researcher Dr. Richard Bagg aptly called its "level of preservation." The grading controversy arises both from disagreements over the grade of a coin and the enormous differences in price that can arise between two specimens of the same type and date of a U.S. coin, even when the only difference lies in the placement of one or two marks or surface abrasions from contact with other coins, commonly referred to as "contact marks" or "bag marks."

The grade measures the amount of wear, natural mishaps and other surface degradation a coin has received after leaving the coining press. The more wear and surface marks a coin has received, the less it is worth compared to other specimens of the same coin with less surface degradation.

However, not all coins have received circulation wear since they were struck. These coins are called Uncirculated or Mint State. Rather than being easier to grade because there are no points of wear to determine, Uncirculated coins become much harder to grade.

A noncollector unexposed to the intricacies of grading might be expected to show surprise at this last statement. After all, he might think, it seems logical that a coin that has received less wear is worth more than one that has received more wear. However, if a coin hasnt received any wear, how can it be different from other unworn specimens of the same coin? Suffice to say, there are graduated levels of Mint State, at least 11 (from Mint State 60 to Mint State 70), determined by such factors as contact marks, luster and — depending on the grading standard being used — the strength of the strike and toning. Therein lies the heart of the controversy.

For decades, the controversy lay mainly in the differences between the dealers grade for a specific coin and that of the collector. However, as the number of Mint State grades began to increase, grading became more complicated and values increased in greater increments between coins of different grades. In response, third-party grading services began operation.

The first third-party grading service, the International Numismatic Society Authentication Bureau, began grading coins in December 1976, several months after it began authenticating coins. It laid the groundwork for third-party grading services, all of which provide an opinion about a coins grade for a fee. INSAB was followed March 1, 1979, when the American Numismatic Association Certification Service began grading coins for a fee.

Another major step in third-party grading services was taken by the Professional Coin Grading Service, a private business founded in February 1986. PCGS is responsible for two firsts. It was the first grading service to encapsulate the coins it graded into hard plastic holders, nicknamed "slabs," and it was the first grading service to use 11 levels of Mint State, from Mint State 60 to MS-70. It rapidly overtook ANACS, until then the most active of grading services in terms of numbers of coins graded. PCGS also published a grading guide, in 1998, the first of the private grading services to do so.

PCGS was followed by the Numismatic Guaranty Corporation of America. As encapsulated coins became more popular with dealers and collectors, existing services expanded their services. INSAB offered a "slab" service beginning in 1989, as did the ANA with its ANACS Cache.

In 1990, the Ameri