First, let me say that I have A LOT to learn in regards to proper grading. With this in mind, I’ve been looking at a great deal of graded coins by TPG’s to see what coins pass for the conditions they post on the outside of the slab. One of the issues I’m having is determining when damage on a coin (like a scratch) simply drops a coin down a grade or two, and when it will be hit with a details grade of “damage” or “scratched.” An example of this is a current heritage auction for an NGC 1793 wreath: http://coins.ha.com/c/item.zx?saleNo=1182&lotNo=3706#94529452903 Why does the damage (scratch?) on the obverse of this coin avoid a details grade when this coin http://coins.ha.com/c/item.zx?saleNo=1137&lotNo=66#52765276164) was not spared. (I'm assuming that the scratch is the cause of the "damage" classification.) Is it mainly based on location (eye-appeal) or something else? I know the people who grade these coins follow specific guidelines set forth by their companies, but how much of their grading in this area is subjective and how much is objective? Thanks for any help you can provide!
I am not expert but I believe the second coin was spared because the metal near the marks were not raised, as long as TPG believe that the marks were made at the mint, they won't give detail grade, if a coin is scratched there should be raised metal near the mark. Most of the time even though a stuck through coin is graded without details grade, it will still sell for lower price than same grade coin without damage. Personally I prefer the damaged coin over the second coin.
Great question - one that's bothered me too. I have in hand my ANA guide, but it's of little help in this area.
The coin in the problem-free holder has what appears to be a mint-made defect on the coin by way of a substandard planchet whereas the coin in the details holder has a post-mint defect that is clearly a scratch. Mint-made imperfections are allowed on coins without designation, but post-mint defects will land a coin in a problem holder.
Tom nailed it. The first coin's "problem" is a mint-made defect, and TPGs don't take these into account as problems unless they are very major. The second con's "problem" is post-mint damage....it appears intentional, it is on the obverse, and it is in a prime focal area. Three strikes and this coin's out. But really, both are subjective decisions, and you'll find examples of both types of damage in problem-free and details slabs. The key is figuring out the threshold...and (just to make it even more confusing) it varies by date and series, and even by varieties! In general, the more rare the issue, the more lenient the TPGs are. Said a bit differently, a problem on a wreath cent is viewed far more leniently than the very same problem on a modern proof. Lastly, TPG market grading is almost entirely subjective -- a judgement call. There is little objective about it, IMO. Hope this helps...Mike
Thank you. Boy, that is a tough one though (if you're the owner of the damaged coin). So much value is determined, not on the presence of a scratch, but when the scratch occurred. That is just one more thing I will need to try and spot while evaluating non-slabbed coins such as these.
This illustrates perfectly why I advised you to seek guidance from a dealer who specializes in these coins before buying one.
Don't misunderstand what they are telling you. A scratch is scratch and it doesn't matter if it occurred at the mint or outside the mint because a scratch can only occur after the strike. What they are telling you is that there are things that can occur before the coin is struck, things like planchet defects. And depending on the severity of that planchet defect the TPG may show leniency. Scratches are a completely different animal than planchet defects. However, it is also important to realize and understand, and this is what Leadfoot mentioned, there is a threshold, that if it is crossed, that planchet defect will result in the coin being put in a Details/Genuine slab. edit - It is also important to understand that the TPG's are much more lenient with planchet defects on early coinage than they are with anything else. A planchet defect that was accepted on early coinage will not be accepted on later coinage. You can't always, but sometimes you can. If a gouge occurs before the coin is struck there will be no raised metal around the gouge. But if it occurs after the coin is struck there will be raised or displaced metal around the gouge. How easy it is to see that raised/displaced metal will depend on the severity of the gouge.
