What grading actually does
A grading service does three things. It authenticates the coin, which catches counterfeits, added mint marks and altered dates. It assigns a grade, usually on the Sheldon scale, where 1 is barely recognizable, 60 to 70 is uncirculated and 70 is flawless under magnification. It encapsulates the coin in a sealed holder with a label and a unique certification number that buyers can look up online.
The point is trust between strangers. A buyer across the country can bid confidently on a slabbed coin without seeing it. Grading does not make a coin rarer or better. It doesn't set a price either. It removes doubt. Doubt is what holds down offers for raw (ungraded) coins.
What the parts of a slab label mean
| Label item | Example | What it tells you |
|---|---|---|
| Date and mint mark | 1921-D | The year and the mint that struck the coin |
| Denomination and series | 10C Mercury | Face value and design type |
| Grade prefix | MS, PR or PF, AU, XF, VF | Mint state (uncirculated), proof or a circulated grade level |
| Numeric grade | 64, or 64+ | Position on the 70-point scale; a plus means high end for the grade |
| Strike or color designation | FB, FS, FBL, RD, RB, BN, DMPL, CAM | Full bands, full steps, full bell lines, copper color, deep mirror prooflike, cameo contrast |
| Variety | DDO, 1942/1, VAM number | A recognized die variety that can change value |
| Details grade | XF Details, Cleaned | Genuine but has a problem; no straight numeric grade |
| Certification number | Long number plus barcode | Look it up on the service's website to confirm the holder is real |
The services: PCGS, NGC, ANACS and the CAC sticker
PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Company) are the two largest services. Their holders generally bring the strongest prices. PCGS started in 1986 and NGC in 1987. ANACS is older, founded in 1972 by the American Numismatic Association to fight a wave of counterfeit and altered coins. It was later sold to private owners. It is well respected for authenticity and variety attribution. It also accepts coins directly from the public. Coins in ANACS holders tend to sell for somewhat less than the same grade from PCGS or NGC.
CAC is different. It reviews coins already graded by PCGS or NGC and places a small sticker on the holder of those it approves. A green sticker means the coin is solid for its assigned grade. A gold sticker means the coin exceeds its grade and would typically deserve the next grade up. Coins that don't meet CAC's standard simply come back without a sticker. Many buyers of better coins pay more for stickered pieces.
Be cautious with grading companies you have never heard of. Some sell holders with generous grades that the market ignores.
How to submit: membership or dealer
You have two main routes. The first is a paid membership. PCGS requires a Collectors Club membership to submit directly. NGC accepts submissions from its paid collector members and from ANA members. Some membership levels include vouchers that cover a number of grading fees. ANACS doesn't require a membership at all.
The second route is an authorized dealer. Dealers who are authorized by PCGS or NGC can include your coins in their own submissions. You pay the grading fee plus return shipping and handling. Some dealers add a service charge. This makes sense if you have only one or two coins. Many large coin shows also have on-site submission tables for the major services.
Grading fees are tiered by the value of the coin and by how fast you want it back. Higher value coins go into higher fee tiers. Faster turnaround costs more. On top of that, plan for registered and insured shipping both ways and any extras such as variety attribution or photography. Fill out the submission form carefully, declare an honest value and pack coins in individual flips, never loose.
When grading is worth it
- Key dates and semi-keys, such as a 1916-D Mercury dime or a 1932-D quarter. Authentication alone adds value, since these are commonly faked.
- Gold coins, which are targets for counterfeiters.
- Coins that look uncirculated, where one grade point can move a coin from small premium to collector premium.
- Coins with possible full strike designations, such as Full Bands on a Mercury dime or Full Bell Lines on a Franklin half.
- Coins you plan to sell online or at auction to strangers.
When grading isn't worth it
- Circulated common dates, such as most wheat cents and worn silver dimes.
- Junk silver bought and sold for its metal.
- Modern proof sets and mint sets, unless a coin might grade a perfect 70 in a series where that matters.
- Coins that have been cleaned, scratched, bent or holed. They will come back with a details grade, which collectors discount heavily.
- Coins you plan to keep and enjoy, unless you want the authentication for peace of mind.
How to read a slab label
Start with the date, mint mark and denomination at the top, then the grade. MS means mint state, a coin made for circulation that never circulated. PR or PF means proof, a specially struck collector coin. Circulated grades read as AU (about uncirculated), XF or EF (extremely fine), VF (very fine), F (fine), VG (very good), G (good) and AG (about good). A plus sign after the number marks a coin at the high end of its grade.
Look for designations after the grade. Copper is labeled RD for red, RB for red brown and BN for brown, with red bringing the most. Proofs may carry Cameo or Deep Cameo (Ultra Cameo at NGC) for frosted designs on mirror fields. Morgan dollars may be marked PL (prooflike) or DMPL. If the label says Details, Genuine or names a problem like cleaned or environmental damage, the coin is real but didn't get a straight grade.
Finally, type the certification number into the grading service's online verification page and make sure the description and photos match. Counterfeit holders exist. This check takes a minute.
Frequently asked questions
Can I send coins to PCGS without a membership?
Not directly. You need a PCGS Collectors Club membership, or you can submit through a PCGS authorized dealer who sends coins on your behalf.
How long does coin grading take?
It depends on the service tier you pay for and how busy the grading company is. Slower economy tiers can take weeks to months. Faster tiers cost more.
Is PCGS or NGC better?
Both are widely trusted and their holders sell for similar money in most series. Some specialists prefer one or the other for particular series, so check which holders sell better for your coin type.
What does a details grade mean?
It means the coin is genuine but has a problem such as cleaning, scratches or environmental damage. The label shows a details grade instead of a number. These coins sell for much less than problem-free coins.
Sources: PCGS: How to submit · NGC: How to submit coins · CAC stickering frequently asked questions · ANACS (Wikipedia) · Mercury dime (Wikipedia)