Technical grading vs Market grading

With all due respect Doug,

The crackout game is evidence of this grade inflation. Population reports are completely undependable because of the crackout game. The number of times I have seen people keep re-submitting coins to get the better slab and actually getting them time and time again to me is evidence of grade inflation. The number of what I call overgraded coins in slabs is growing daily and this to me is also grade inflation. Sometimes evidence of trends is not readily apparent but is bourne out over time.

 

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Like getting your car fixed, they were called Mechanics, now they are called Technicians

 

Isn't the point about price dependency that AT A GIVEN POINT IN TIME the standards for more expensive coins are looser?

 

Thanks, everyone, for all the excellent input. Great thread.

To make sense of it all, I had to back away from all the details, zoom out, and get the Big Picture. I asked myself the following question :

Why even have a grade at all ? What's the real purpose ?

There are many perspectives on that one.

One important reason is commercial. We need an accurate, widely accepted grade so that two parties can have a reasonable discussion about price.

So it makes sense to have a system where the many quality factors (surface, wear, strike, luster, etc on obverse / reverse and rim)... all those factors funnel down to one final "overall quality indicator" - and, for a given issue, all coins of that grade will have a similar price - though they may be very different in any single factor.

That sounds like market grading to me - market oriented, based on technical factors, and a stable analysis method.

"Market grading" and "technical grading" are NOT mutually exclusive.

They are like Siamese Twins, joined together. They overlap. Market Grading requires technical talent, and Technical Grading has a commercial "reason for existence".

Don't get me wrong... I'm not dumbing down numismatics to nothing more than crass commercialism. I have MUCH respect for numismatic scholars; we owe them much. Each of us has a love for the hobby which is non-commercial.

But in this sport, market forces are dominant factors.

 

This thread is great! I feel like I've learned more about grading, but at the same time I'm confused. I guess thats because it comes down to opinions of different people. Hmmmmm... I feel enlightened, yet my head is spinning

 

I agree! this is an excellent argument... I mean thread! LMAO

Did someone say medal-coin????

 

Technical grading-any coin with no wear is uncirculated, even if it has huge weak spots and is extremely crude. Coins with extremely flat portraits can still boast grades of Fair to GF
In market grading, weak striking and crude die etching will greatly reduce the grades of many coins. Market grading is the "net" grade, Techinal is what it really is.

 

So the TPGs use market grading when they grade coins? Man, I thought it was the other way around. Ya learn something new everyday. This is a really good thread. Sure helps me when I grade coins, gives grading a whole new light in some cases.

Phoenix

 

With the exeption of SGS of course, they use only one grade.

Phoenix

 

Ahh, okay, I guess I missed that post. Sorry. Thanks for the info GD.

Phoenix

 

I didn't realize that. I thought they used something like a "modified ANA standard" where they took about 99% of the technique from the ANA, and that any differences between them was due more to their individual professional interpretations of the standards.

Great thread.:thumb:

 

That's funny !

Sure does simplify things...

 

Now I got a question. I went to the Library today and just checked some books on coins, and read one about coin grading. I forget the title, and unfortunatly didn't check it out, but it said that the major TPGs use both technical and market grading, depending on the coin. Wasn't it said earlier that the TPGs only use Market grading, or did I miss another post? That's what I get for sleeping I guess. Nasty habit.

Phoenix

 

I disagree, they (the TPG'ers) use technical grading whenever I submit a coin.
They use market grading whenever someone else submits a coin.
I know this for a fact and have the slabs to prove it!

 

Okay, that's honestly what I figured. I was just double checking to make sure I didn't miss anything. That's all.

LOL.

Phoenix