Eye Appeal

When PCGS kicked off the third-party grading revolution 33 years ago, it was hoped that assigning a numerical grade would establish a consistent and dependable market value for any given coin. While that endeavor was largely successful, particularly in eliminating the over-grading on the part of some dealers, it was not perfect. As the market evolved, some large spreads in value between grades arose and in March 2010, PCGS added "plus" grades to help address the widening gaps. However even with the addition of plus grades, some sizeable differences remained in values within a given grade.

In the course of editing the PCGS Price Guide and monitoring prices realized from the major auction houses it became evident that establishing a single value for a given denomination, date and mint in a particular grade was far from a straightforward process. For extremely common, generic coins, the large amount of data tended to form a nice "bell curve" and enabled one to set a reliable value without too much difficulty. Outliers could be easily excluded without significant injury to the database. However, for many coins that sell only several times per year (or even per decade) excluding extreme prices often left one with very little (or no) data on which to base a valuation. That presented a problem, as widely varying prices realized are far from uncommon.

In examining the problem, several factors were found to have an impact on where a particular graded coin will fall on the continuum of prices realized. It was no secret that some coins in older holders, graded 20 or 30 years ago, may have a certain allure to some. Graded coins that have been stickered by CAC also had a tendency to fall at the higher end of the pricing spectrum. And of course, who is participating in the sale mattered as well. If two wealthy collectors absolutely have to own a particular coin, look out!

All of these factors however, paled in comparison to the impact of an attribute we often refer to as "eye appeal." So, what is this rather nebulous concept of eye appeal all about?

Eye appeal is one of four factors PCGS looks at when grading a mint state coin. The first two, Surface Preservation and Strike are fairly objective. Bagmarks, hairlines, abrasions, and other surface imperfections are either present, or they are not. Strike can be measured against a theoretically "fully struck" example, and areas of weakness can be determined. The third, Luster, is a bit more difficult to measure objectively, but most trained eyes can readily tell a lustrous coin from a dull or impaired one. Which brings us to the fourth factor...

Eye Appeal is defined as the overall "look" of a coin. It is a complex and indefinable mixture of the first three factors discussed above plus toning (or any coloration to the coin’s surface). Because surface preservation, strike and luster already have played some part in the coin’s grade, much of eye appeal therefore deals with a coin’s toning. Spectacularly toned coins often elicit a "wow" from the observer, and over the years, we’ve used a variety of colorful adjectives to describe a coin with a "wow factor."

Eye appeal only accounts for about 10% of a coin’s final grade in the normal grading process, but it often plays a critical role in determining what a given coin may realize when it is sold.

To illustrate the dramatic impact of eye appeal on value, we’ll first take a look at some recent sales of a few PCGS MS66 Barber Dimes. Nothing special about Barber Dimes – this same phenomenon holds across most other U.S. nickel and silver type coins. We will not list the specific auction company that sold the coin, as all the major auctioneers have achieved both unusually high as well as low results.

1893-O Barber Dime PCGS MS66

The first coin we’ll take a look at is an 1893-O. Sold only one month apart, the coin on the left has rather splotchy toning and the colors are not particularly vibrant. It brought $1,763. The coin on the right (sold only a month earlier) has vibrant peripheral toning in rich amber shades with a brilliant center – a striking piece that realized $4,230, or 2.4 times as much.

Next is an 1896-P...

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