No Grade Coins – Part II

Last time, we discussed the origins of the PCGS sight-unseen trading system, and the need to keep problem coins off the market. The "net grading" that often took place prior to PCGS’s entry into the market was unsuitable for a trading system that required dealers to purchase coins at their bid price.

While this system proved satisfactory and worked for many years, the plain facts are that there are quite a few saleable coins in the market with problems, and provided they are genuine, could certainly find a home with many collectors. Early U.S. type coins in particular are generally quite expensive and quite a few have problems of some sort that would preclude a grade from PCGS. Yet for many, it is an affordable way to "fill a hole," so to speak.

In order to address this concern, in early June 2008, PCGS announced a "Genuine" Service. PCGS began encapsulating most problem coins in a regular slab, except that the insert read "GENUINE" in place of the usual grade. Counterfeit coins, coins of questionable authenticity, coins with PVC residue or an attached planchet lamination were still not holdered. But most other problems, such as artificial color, cleaning, planchet flaws, altered surfaces, scratch, rim dent, or other damage (environmental or otherwise) were eligible for a "GENUINE" designation slab.

A few years later, PCGS began adding an adjectival "Details" grade. Numbers were not used, but the traditional terms such as Good, VG, Fine, VF, XF, AU and Unc. were employed, along with the word "Details" and a reason for the rejection of a regular grade.

A pair of PCGS "Details" graded coins, with reasons for the rejection of
a regular grade

Next time, we’ll take a look at some of the individual problem areas that PCGS considers when grading, and what qualifies a coin for inclusion in that category.

Series Links:

http://www.pcgs.com/news/no-grade-coins-pt1

http://www.pcgs.com/news/no-grade-coins-pt2

http://www.pcgs.com/News/no-grade-coins-pt3

http://www.pcgs.com/news/no-grade-coins-pt4

http://www.pcgs.com/news/no-grade-coins-pt5

http://www.pcgs.com/news/no-grade-coins-pt6