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<p>[QUOTE="GDJMSP, post: 617703, member: 112"]As I have explained many, many times and everybody always seems to forget, when market grading was adopted by the numismatic community, <u>the value of the coin played no part whatsoever in determining the grade of the coin.</u> Market grading was first developed and adopted by both the ANA and the TPG's at the same time - in 1986. Both the ANA grading standards and the PCGS grading standards are written out in their entirety, and nowhere in ether book will you find a single word that says that the grade is based upon the value of the coin. The grade in both sets of standards is based on, and <b>ONLY on</b> contact marks, hairlines, quality of luster, eye appeal and quality of strike.</p><p><br /></p><p>Way too many people are of the mistaken belief that the only thing that differentiates market grading from technical grading - and those are the only two grading systems there are - is that market grading is based on the value of the coin, that market grading is a pricing system and not a grading system. This is absolutely not true !!</p><p><br /></p><p>It is only in recent years that people have tried to explain what market grading is by saying that it is based on the value (or price) of the coin instead of the condition of the coin. There are 2 reasons I can think of for this - 1 - they don't understand what market grading actually is, and 2 - they are making excuses and coming up with explanations for grades being assigned to coins that don't deserve the grade - over-graded coins in other words - and trying to stick up for the TPG's and delude themselves into believing the grades are accurate.</p><p><br /></p><p>In the past I have tried my best to explain what the actual grading criteria are for the two systems of grading so that people might understand the real differences between market grading and technical grading. But some never seem to grasp it. Instead they choose to believe that market grading is simply a pricing system because that allows them to explain the grades assigned when the assigned grades are too high for the condition of the coin. </p><p><br /></p><p>So this time I will try something different. The following are verbatim quotes from the PCGS grading standards book. And it's kind of hard to argue with black and white. </p><p><br /></p><p>According to the PCGS book there 3 classifications of coins - Uncirculated or Mint State coins, Proof coins, and Circulated coins. That's it. Their definition of a circulated coin follows - </p><p><br /></p><p>" These are coins that have undergone wear, <b>however slight</b>, as a result of use in circulation <b>or mishandling</b>. .........." (the bold is mine)</p><p><br /></p><p>Now given that definition, it becomes obvious that all of these coins that we have been discussing recently, that clearly show signs of wear on them, are indeed over-graded even according the very standards written and supposedly followed by PCGS.</p><p><br /></p><p>This next quote deals directly with the value aspect of a coin. It is a pretty straightforward and undeniably clear comment. There is no room for misunderstanding or interpretting it differently to mean what you want it to mean.</p><p><br /></p><p>" From the outset, PCGS dedicated itself to standardizing grading, <b>so any fluctuation in the value of a coin would be limited to price swings, rather than to market related changes in grade</b>. A Mint State-65 coin would still be the same in any market - hot, cold or neutral. <b>The price might change but the grading would not - and could not</b> - becuase the coin was encapsulated along with a unique serial number and fixed grade." (again the bold is mine)</p><p><br /></p><p>Now, please, go ahead and tell me that I am wrong and that market grading is based on price and not condition. And then I will say to you - horse puckey ![/QUOTE]</p><p><br /></p>
[QUOTE="GDJMSP, post: 617703, member: 112"]As I have explained many, many times and everybody always seems to forget, when market grading was adopted by the numismatic community, [U]the value of the coin played no part whatsoever in determining the grade of the coin.[/U] Market grading was first developed and adopted by both the ANA and the TPG's at the same time - in 1986. Both the ANA grading standards and the PCGS grading standards are written out in their entirety, and nowhere in ether book will you find a single word that says that the grade is based upon the value of the coin. The grade in both sets of standards is based on, and [B]ONLY on[/B] contact marks, hairlines, quality of luster, eye appeal and quality of strike. Way too many people are of the mistaken belief that the only thing that differentiates market grading from technical grading - and those are the only two grading systems there are - is that market grading is based on the value of the coin, that market grading is a pricing system and not a grading system. This is absolutely not true !! It is only in recent years that people have tried to explain what market grading is by saying that it is based on the value (or price) of the coin instead of the condition of the coin. There are 2 reasons I can think of for this - 1 - they don't understand what market grading actually is, and 2 - they are making excuses and coming up with explanations for grades being assigned to coins that don't deserve the grade - over-graded coins in other words - and trying to stick up for the TPG's and delude themselves into believing the grades are accurate. In the past I have tried my best to explain what the actual grading criteria are for the two systems of grading so that people might understand the real differences between market grading and technical grading. But some never seem to grasp it. Instead they choose to believe that market grading is simply a pricing system because that allows them to explain the grades assigned when the assigned grades are too high for the condition of the coin. So this time I will try something different. The following are verbatim quotes from the PCGS grading standards book. And it's kind of hard to argue with black and white. According to the PCGS book there 3 classifications of coins - Uncirculated or Mint State coins, Proof coins, and Circulated coins. That's it. Their definition of a circulated coin follows - " These are coins that have undergone wear, [B]however slight[/B], as a result of use in circulation [B]or mishandling[/B]. .........." (the bold is mine) Now given that definition, it becomes obvious that all of these coins that we have been discussing recently, that clearly show signs of wear on them, are indeed over-graded even according the very standards written and supposedly followed by PCGS. This next quote deals directly with the value aspect of a coin. It is a pretty straightforward and undeniably clear comment. There is no room for misunderstanding or interpretting it differently to mean what you want it to mean. " From the outset, PCGS dedicated itself to standardizing grading, [B]so any fluctuation in the value of a coin would be limited to price swings, rather than to market related changes in grade[/B]. A Mint State-65 coin would still be the same in any market - hot, cold or neutral. [B]The price might change but the grading would not - and could not[/B] - becuase the coin was encapsulated along with a unique serial number and fixed grade." (again the bold is mine) Now, please, go ahead and tell me that I am wrong and that market grading is based on price and not condition. And then I will say to you - horse puckey ![/QUOTE]
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hone your grading skills -- 1839 large cent
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