Special coins get special consideration from grading services: Dexter 1804 dollar

It's accepted by many that very rare coins are treated with a little more leniency by the grading services. They may give them a bit higher grade than more common coins in the same condition might get. Or a little bit of rub on the high points may be ignored, and a coin that would otherwise rate an AU is graded as mint state.

I think a good example is the Dexter 1804 dollar that is coming up for auction as part of the Pogue collection. Mr. Dexter stamped a small "D" on one of the clouds on the reverse. However, the coin was graded PR65 by PCGS. Try doing this in an unobtrusive place on a mint state 1901-O Morgan and submit it to PCGS. What do you think the label on the slab would say?

Cal

 

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Money talks, bull dinkies walk........

 

No kidding - Hmm, grade this 1856 Flying Eagle or push these 1857-58's ahead of it??

 

The presence of the "D" on an 1804 dollar has a different (smaller) effect on its ultimate retail value than the same defacement would have on an average 1901-O Morgan. In the world of technical grading, it would correctly be graded as damaged. In the world of market grading, assigning a grade is reasonable enough. I don't like it either, but that's where we are.

 

Right. You could counterstamp Batman and Robin on that coin (1804) and it would garner a considerable discretion from the grading services.........

 

Good question. There was a very rare vam that had some light graffiti on it but was straight graded. It was in the heritage Auction at Anaheim but when brought to their attention they pulled it. The owner reconsigned at GC and it brought over $6k. Now, did the tpg use this line of thinking or was the graffiti missed?

 

I had a R5+ bust half that PCGS had only ever graded like 6 of in all grades. It had a very light "D" scratched in the left field. They straight graded it VF25. You could make an argument that the "D" was just a couple light scratch marks that happened to be in the shape of a "D," but still... I think they saw how rare it was and that I was requesting the Overton, then they gave it a pass due to rarity.

 

I'd still pay melt for it.

 

A different set of rules for issues most rare. As I thought (and already knew).

 

Sometimes Ian will point out the flaws of expensive pieces. Heritage as well. But not something like graffiti.

 

Of course not......they don't want to draw attention to the flaws..........

 

Yeah. I'm talking about how they sometimes note things like, "subdued luster" or "somewhat weakly struck," but then they add things to soften the blow like, "as typical for the issue."

 

The graffiti and hairlines around it were light. I could see it straight grading but hurting the price as most likely only a big money vammer or dealer would pay up for it.

 

I guess this is where I have a problem with TPGs sometimes. I feel that their service is to provide an unbiased technical grade of the coin, whether it be a 2016 Lincoln Shield pulled from circulation, or a seven-figure rarity from a notable collection. Strike is strike, details are details. And yes, part of their expertise is to recognise year/mint/type specific problems that may lead to a different grade than apparent, but to outright ignore an issue because of the value or provenance of the coin is a bit out of my comfort zone.

I'd argue that the 1804 Dollar, in a details slab with the graffiti noted, would have netted the same price at auction. Something like that, the true buyers know what they are getting regardless of the printing on the label. I'd appreciate a more honest grade.

 

All coins should be graded by the same criteria regardless of rarity.