The birth of "grading" In the late 1970's the chaotic coin market was running rampant and like the wild west had no rules or "law" for collectors. There was no established means to determine a coins striking, was it realy "uncirculated" or what was the difference between "gem" and "choice" was subject to a sellers opinion. The more money they wanted, the higher the description. Beginning in the early 1970's an organization was formed to authenticate coins. This organization also known as ANACS (American Numismatic Association Certification Services) soon found that a means of grading a coin was needed. They adopted the Sheldon Scale and soon found that this system of grading coins helped end the chaos associated with the coin industry. Buyers and sellers felt more confident when purchasing coins. The party soon began to loose its air of happiness. As the coin market started to drop in the early 1980's, dealers who earlier complained that coins were under graded were now complaining that ANACS was over grading and this was the cause for the market down trend. This situation was to be the downfall. It appeared that commercial grading was indeed inconsistent. When the market was hot, a coin would be graded MS-65 but when the market turned cold, the same coin would be graded MS-63. One must remember that during the early years certificates were issued for the coin. They were not encapsulated, this allowed dealers to have a certificate reissued at a lower grade when they wanted to buy back a coin they had sold at a higher grade earlier. This also caused a shrinking of confidence in the commercial grading business. The grading process we all have come to know today was through the establishment of an organization that recognized the problems and provided a solution. The practice of grading and encapsulating a coin to preserve the coin and the grade was developed by PCGS in 1985. This organization was formed by prominent coin dealers and headed by David Hall. This solution soon restored confidence in the grading process. PCGS through the use of consensus grading, a process whereby 3 graders review a coin and assign a grade. The coin is then sent on to a another grader to view and weigh the individual graders grade, this is where the final grade is decided. Thus today, we have a set standard for grading. But like all things, over the years others jump on the wagon to get a piece of the pie. We are now faced with multiple grading companies, some are on the mark and others are way off. Perhaps some collectors are satisfied and perhaps some are weary. It still all boils down to one fact, collectors should study all they can regarding the various grades and what to look for if they wish to make wise decisions when purchasing coins. NOTE: ANACS, established by the ANA in 1972 branched out into grading in 1979. the ANA sold the grading service to Amos Press Inc. of Ohio which currently operates under the acronym of ANACS.
