What are Grading and Conservation? AKA, What are NCS, NGC, and PCGS?

I got a pm asking about the differences between conservation and grading, so I thought it would be better to make a post so anyone who is interested can learn.

First, grading.

Grading is the process of determining the condition of a coin. Coins are graded on a scale of 70, with 70 being perfect. Over at LBC, badon and I recommend buying investment grade coins with a score of 69 or 70. 68s are OK for *very* rare coins, but still try for at least a 69 if possible. Of course, the higher the grade, the more collectors want them, and the higher the price. Who wouldn't want perfect coins?

There are two main grading companies, NGC and PCGS. For Chinese coins, NGC is dominant. NGC recognizes more (but not all) varieties of Chinese coins. NGC's holders are better at showing the edges of coins and keeping air out (important for silver!).

All the other grading companies (ICG, ANACS, etc) are considered by the market to have lower quality standards. So a ICG MS 69 is not as valued as highly as a PCGS MS 69.

On to conservation.

Conservation is the process of removing debris left over by the minting of the coin. Often there is dust and other chemical residue from the different stages of minting. The results of conservation is that coins generally have brighter foregrounds and deeper fields. In general they just look better. In addition, the removal of chemical residues will *generally* prevent the formation of oxidation spots on silver coins, also known as White Spots of Death (WSoD). WSoDs have a dramatic negative effect on the collectibility and value of a coin.

The only company that I'm currently aware of the does conservation is NCS. NCS and NGC have a crossover service, but aren't the same company. This crossover service allows members and dealers to submit coins to NCS directly. NCS will apply their super-secret techniques to the coin, and then hand it over to NGC for grading. It's a handy one-stop shopping experience.

Hope that helps. If you guys have any questions, I'll do my best to answer.

 

thanks for sharing.......I am sure a lot of people will benefit with this knowledge...

 

Great post, very informative!

Good to hear 69 is investment grade, going to dabble into buying some NGC MS 69 Gold pandas for now, 70 too rich for me

I have read on China mint forums that some people prefer slabbed/graded coins over OMP because the plastic might damage the coin?

Is this true and should I grade my coins instead of keeping in OMP?

Thanks

 

The slab vs. OMP is a constant debate, and I don't think anyone knows for absolute certainty whether the plastic packaging encourages damage or not. What we do know is a coin can sit in OMP for years, look perfectly fine, and then all of a sudden develop oxidation problems. Other coins in OMP don't have any issues at all. So it's kind of a crap-shoot. Do people play craps in Australia?

Personally, I conserve and grade all my coins. I think that's the easiest way to prevent future problems.

 

Anyone know the cost of submitting a coin for grading? I'm have heard downies do it(as in act as middle man)

 

Thanks Tamo! That was very useful

 

Here's the price sheet from NGC: http://www.ngccoin.com/services/services.asp

Here's the price sheet from NCS: http://www.ncscoin.com/conservation/services_and_fees.asp

I have no idea what a dealer might charge as a middle man.

I use the modern tier service at NCS. $22.50 for conservation by NCS and grading by NGC.

 

+1

 

Ask mmm...shineyyyyyyy about his experiences of getting coins graded from Australia

 

Wow... this is such cool info... thanks for sharing!

 

so I'm assuming your a member of the collectors society? Out of interest which level of membership are you on?

 

Yep, I'm just an Associate Member. It's $39 a year and allows me to make direct submissions.

 

+2

 

I was thinking it would make a great little business as in acting as middleman for these grading companys (Organise postage, forex etc) However PCGS requires at least 3 years of business operation and at least 100K in numismatic stock.

 

I guess postage would have to be factored in as well. I would imagine it would be quite considerable as it has to be insured both ways.

 

My membership was somewhere around $100 but there is various levels you can get, you can check their website for more detailed information. For approximately $100 membership you get 5 free submissions so it pays for itself.

The best and most economical method for submission regarding NGC grading alone without conservation is "world modern" which is $16.50 and then you pay an additional $2.50 for "scratch resistant, edge view" holder so about $19 total.

The most logical (IMO) is just submitting all coins to NCS for conservation and for $22.50 you get conservation, grading & the best holders.

This is my route taken on every submission.

 

membership fees ...