Jeff Garrett: Understanding Details Grading

Later this month, I will be teaching advanced coin grading at the American Numismatic Association (ANA) Summer Seminar in Colorado Springs. The title of the course is Advanced United States Coin Grading & Problem Coins. The class is focused on the difficult task of identifying problem coins. These are the coins with issues that would prevent them from getting what is termed "straight grading."

Straight-graded coins are classified on the Sheldon grading scale of 1-70. Details-graded coins are classified by NGC based on the coins' details, using adjectives such as AU Details - Improperly Cleaned. NGC makes an effort to holder most coins, but some with severe issues are sent back in flips with a note explaining why the coin could not be holdered. Anyone who has submitted coins to NGC for grading knows that one of the most disappointing feelings is getting back what are commonly referred to as "no grades."

In the past, all coins that did not meet the standards for encapsulation were sent back to the submitter in a poly sleeve inserted in a plastic flip. Over the years, these became known as "body bags" in the trade. Receiving them was dreaded by anyone who had just paid good money to have the coin graded.

Amateurs aren’t the only ones who received "body bags." Many of the most experienced dealers also received coins back that were deemed as "no grades." Common causes for "no grades" were the result of cleaning, artificial toning, scratches, environmental damage and repair (or damage) to the submitted coins.

Thankfully, years ago, NGC began to holder coins that did not meet the previous standards due to one (or more) of the problems mentioned above. "Problem" coins would now be Details graded, with the offending problem mentioned on the holder. This would allow expensive (or otherwise collectible) coins to be certified as genuine but graded for Detail purposes.

To be clear, this does not mean "net grading." This term refers to a standard where all problems are taken into account, resulting in a "net grade" for the coin. An example would be an 1844-D Half Eagle that has partial luster and enough details for a grade of AU 50, but because of excessive bag marks, the coin has been net graded as Extremely Fine 45.

Not all coins can be net graded, because the offending problem(s) could be relatively minor at first glance. An example might be a 1907 High Relief graded MS 60 because of light hairlines but which, at first glance, might look like a cinch MS 63. Consumers could easily be confused by this, thinking the coin was very under-graded. To resolve this, Mint State coins with Details grading are limited to the term "Uncirculated." Details grading is best defined as the grade the coin would achieve without the problem that has been identified.

One of the most common questions I am asked about coins that have been Details graded is how to determine value. This can be very difficult because every coin is different. The degree of cleaning or other impairments can vary from light to very harsh. In general, the value of a Details-graded coin is usually set at least one grade lower but sometime two grades.

The purpose of the Details grading is to have a coin in a holder so that it is guaranteed genuine and will still fit in with other certified coins in a collection. For many collectors, an impaired coin is often the only affordable way to purchase many of the "key" issues of a series.

Establishing the value of Details-graded coins should be done on a case-by-case basis. The actual quality of a Details-graded coin can vary considerably. The below pictured coins are great examples.

This 1803/2 $5 graded NGC AU Details - Repaired is attractive but it has surface issues that NGC deemed as repaired. This obviously impacts the value considerably. I would estimate the coin to be worth about 50% of the value of an NGC AU 50 or better coin.

This 1804 $5 graded NGC AU Details - Improperly Cleaned is barely a no grade, with a bit too much cleaning on the obverse for straight grading. The reverse of the coin is problem-free with a Mint State appearance. This coin would be very desirable and worth 75% or more of the value of an NGC AU or better example.

This 1805 $5 graded NGC UNC Details - Improperly Cleaned has surfaces that are almost polished in appearance. The coin is probably worth 35% to 45% of an NGC MS 60 or better coin.

Unlike straight graded coins that can be valued based on catalog prices or auction records, Details-graded coins are valued based on the individual coin’s appearance. You will need practice and experience to accurately value Details-graded coins. That is one of the reasons our ANA Summer Seminar class is so popular.

As mentioned above, not all coins are eligible for Details grading. NGC will not holder coins that have material applied to the surfaces. This includes coins that have traces of PVC on the surfaces. Issues such as PVC and carbon spots can become worse over time. When sealed in an airtight holder, it could make the situation worse. These coins can sometimes be professionally conserved and later encapsulated. Artificial or questionable toning is an issue that is among the most perplexing for some submitters.

NGC makes every effort to ensure that coins they encapsulate are original and not the result of a lab experiment. Remember, for every coin NGC grades, they risk their reputation and sometimes place hundreds of thousands of dollars on the line for a $100 grading fee. If an issue with the coin’s surfaces comes into question, NGC has no choice but to err on the side of caution. This is for their own protection and that of the many buyers who purchase NGC products in the future.

Unfortunately, some coins that you know came from an original source will sometimes be sent back as "no grades." For expensive coins, consultation with a conservation expert could bring clarity to the coin in question. Perhaps the offending surface issues can be removed, and the coin can later be certified.

Another big mystery for many submitters is the very common "Improperly Cleaned" designation. I’m not sure of the percentage of coins that receive this designation, but it is not insignificant. "Improperly Cleaned" does not mean a coin that was dipped in dirty Jewel Luster. NGC generally uses this term to describe mechanical cleaning issues.

Mechanical cleaning usually means the presence of hairlines that are the results of harsh cleaning. Imagine the results of using a scouring pad on your 1881-S Morgan Dollar. Pencil erasers are also a very common tool of numismatic destruction. Coin conservation has progressed light years in the last few decades. Many years ago, coins needed to be bright and shiny for those new to the hobby. Dealers sometimes complied with these wishes by using very harsh cleaning methods.

The NGC website has a tremendous amount of information on the subject of what coins they will holder and the possible results. Many of the terms mentioned above are explained thoroughly. For non-professionals, it is always beneficial to have an expert review your coins before they are submitted to NGC for grading. This pre-screening process can save you the cost of grading fees and considerable frustration if it is obvious your coins will not be graded. Most dealers gladly offer this advice for little or no charge unless you intend to submit a very large number of coins.

Over the years, I have saved customers thousands of dollars in grading fees who had no idea that many of the coins they wanted to submit would come back either uncertified or Details graded. Again, the services of a competent numismatic mentor can be a collector’s greatest asset. Hopefully, this tricky subject is now a bit clearer and the next time you get coins back from NGC you won’t be as dismayed when you receive a few "no grades!"

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