Will Collectors Accept New Grading System?

Everyone likes a treasure story. We like a treasure story even better when rather than the coins being found in the ground the coins are something we might find in our pocket change. GreatCollections sold a 1943 copper composition Lincoln Cent for $298,125 on Nov. 13. This is the kind of coin that grabs headlines in the mainstream as well as the numismatic press. News of a coin of this nature also encourages non-collectors to start paying attention to what’s in their pockets and might lead to their becoming coin collectors.

The rare coin market remains hot, this coin illustrating that fact through it having received 138 bids, with 226 GreatCollections members following the bidding. Coins and other tangible collectibles are increasingly being recognized as an asset class.

Baseball cards and other collectibles are typically graded on a 1 to 10 scale, while the business of coins continues use the 70-point Sheldon scale. Numismatic Guaranty Corporation is about to try to re-invent the wheel, hopefully successfully. Its new NGCX grading service will offer an alternative to the 70-point system with a yet to be tested 10-point system to be strictly used for grading “modern” coins. [Full story on Page 15.] The new “X” system may or may not become acceptable to the collecting public, especially where very expensive and previously certified coins are involved. There is a potential downside to this since it could cause confusion or be rejected by its target market. We are likely overdue for a re-examination of grading considerations. Hopefully NGCX will be embraced and enhance collecting coins.