COIN GRADING

Once coins are entered into our database, they are barcoded and stored within NGC's vault until they are ready to be graded. Before being graded, coins to include variety designations are examined by a numismatist who specializes in variety attribution. He compares each coin against published references and determines whether it qualifies as a particular variety. If so, the appropriate descriptions and numbers are then added to its record. As with the coin grading process to follow, this work is performed without labeling that could identify the submitter.

The coin grading process is a team effort, with a minimum of three professional grading experts examining every coin. NGC's graders come from diverse backgrounds, though all were coin dealers at some time in their careers. In becoming familiar with market standards for coin grading, experience in the commercial sector is an essential ingredient. Conversely, NGC's full-time graders cannot be involved in the commercial buying and selling of coins. The need for full-time graders to be prohibited from buying and selling coins is a policy not adhered to by all coin grading services, but it's a firm rule at NGC.

Each coin is examined by one grader at a time, and he enters his grade (using the Sheldon numerical scale from one to 70, an industry standard) into the system.

The coin grading scale utilized by NGC is the one universally accepted within the numismatic community. The following table lists the adjectival and numeric grades: Business Strikes MS 60-70 Uncirculated AU 50, 53, 55, 58 About Uncirculated XF 40, 45 Extremely Fine VF 20, 25, 30, 35 Very Fine F 12, 15 Fine VG 8, 10 Very Good G 4, 6 Good AG 3 About Good FA 2 Fair PR 1 Poor Proof issues incorporate the same grades. Proof coins will be so noted with the use of the prefix PF for all grades 1-70. What is a 70? NGC defines a Mint State or Proof 70 coin as having no post-production imperfections at 5x magnifications. Once the first grader has viewed all the coins in a particular box, that box is then routed to the next grader and the process repeated. Only after three or more graders have examined each coin is its final grade arrived at. Occasionally the graders may confer with one another on a particular coin. When this happens, a consensus is ultimately reached which reflects their collective experience as rare coin experts.     In some instances, it may be necessary to add supplemental information describing a particular coin more fully. For example, copper is a chemically reactive metal which tends to lose its mint red color over time, so the amount of red color is often diminished. Therefore, an NGC grader must also enter his determination of whether a copper or bronze coin is fully red (RD), a mixture of red and brown (RB), or all or nearly all brown (BN).These designations appear following the coin's numerical grade. Other examples of supplemental designations assigned by the grader include a determination of whether a Mercury Dime has full split bands, or whether a Franklin Half Dollar displays full lines on its Liberty Bell. These distinctions mayseem esoteric to the beginning collector, but they play a significant role in providing a more complete description, and thus they are essential in the coin grading process. Designation Abbreviations and Their Meanings BN  =  Brown PF  =  Proof CA  =  Cameo PL  =  Prooflike DPL  =  Deep Prooflike RB  =  Red Brown FB  =  Full Split Bands RD  =  Red FBL  =  Full Bell Lines SP  =  Specimen FH  =  Full Head UC  =  Ultra Cameo FT  =  Full Torch 5FS  =  Five Full Steps MS  =  Mint State 6FS  =  Six Full Steps Some coins fail to make the grade, so to speak. For example, coins which have been damaged or harshly cleaned will not be certified by NGC. Instead, they are returned to the submitter in a vinyl flip with a note affixed explaining why they were rejected. This is another advantage of submitting coins through an NGC authorized member/dealer, as these experienced individuals can often screen out coins which are not likely to be certified, sparing the customer disappointment and saving him or her money.