They claim that it is removed from the holder and delivered to the grader as a raw coin. But I always crack mine out before I send them in especially if I am sending an NGC coin to PCGS or vice versa.
Also, you have to remember that some folks send the coin in with the option that if it don't 'cross' equal or better, they get the coin back in the original holder. In that scenario the graders would know the coin grade up front. At least it seems logical that they would.........
Except it would be a simple matter to cover the previous label with a sticker so they can't see what the previous grade was.
