Author Topic: Tougher Grading Standards: PCGS or NGC  (Read 2484 times)

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Offline pandamania

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Tougher Grading Standards: PCGS or NGC
« on: April 06, 2013, 11:41:30 AM »
Over the years many have argued that PCGS grading standards are tougher than NGC`s and therefore PCGS graded coins warrant a premium over their NGC counterparts. Is this actually the case or are the smaller populations (per grade) merely a result of fewer coins being graded by PCGS?

In order to analyze the facts lets take a look at the number and percentages of PCGS and NGC silver and gold mint state pandas currently available on eBay.

                                                Silver
 
            MS64     MS65     MS66     MS67     MS68     MS69      MS70     Total

PCGS        0           0          1           4          24        197        90         316

             (0%)      (0%)     (.3%)    (1.3%)   (7.6%)  (62.3%) (28.5%)  (100%)

NGC         2           1           6          23        138       427        192        789

            (.3%)      (.1%)    (.8%)    (2.9%)  (17.5%) (54.1%) (24.3%)   (100%)

So with mint state (MS) silver pandas there is a bias toward NGC graded coins on a ratio of 2 1/2 to 1. In both upper grades MS69 and MS70 PCGS has a higher percentage (yet lower number) with a total of 90,8% graded at investment level coins compared to 78.4% for NGC. Only 7.6% PCGS coins are at the MS68 level and just 1.2% lower than that (with MS66 the lowest grade). This compares to 17.5% of NGC coins graded MS68 and 4.1% below that level (down to MS64). It is conclusive that based solely on eBay availability NGC actually has tougher grading standards than PCGS (although there is more availability per grade).


                                                    Gold

PCGS     MS63     MS64     MS65     MS66     MS67      MS68     MS69     MS70     Total
 
               1          0           0           1         10           55        195        55        317

             (.3%)    (0%)     (0%)      (.3%)   (3.2%)    (17.4%)  (61.4%) (17.4%) (100%)

NGC          1          1           4           6         40          106       272        54        484

             (.2%)   (.2%)    (.8%)     (1.2%)   (8.3%)   (21.9%)  (56.2%) (11.2%)  (100%)

The NGC grading bias on mint state gold pandas is about 1 1/2 to 1. Again, in both the investment grade MS69 and MS70 there is a higher percentage of PCGS graded coins (78.8% total) vs NGC (67.4%) (also note that there is actually a higher number of PCGS MS70`s). In MS68 there are a higher percentage of NGC coins (21.9% as opposed to 17.4% PCGS). Below that level there are 10.7% NGC graded coins against 3.8% for PCGS. Once again based on eBay availability, NGC grading standards appear to be tougher than PCGS (although there is more NGC availability because of the grading ratio)

This study did not take into account actual grading numbers and percentages as supplied by PCGS and NGC or other possible variables. However, based upon these numbers taken from the significant market maker eBay US it seems reasonable to conclude that NGC is actually a little tougher on mint state pandas than is PCGS and perhaps would be the one to warrant a slight premium if there were an equal number of NGC and PCGS coins in existence.



Offline pandamania

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Re: Tougher Grading Standards: PCGS or NGC
« Reply #1 on: August 18, 2013, 11:30:26 AM »
In April I did an analysis of which grading company appeared to have the toughest grading standards based on eBay availability and concluded that NGC was in fact the preferred grading company and perhaps deserving of slight premiums based on grading standards over PCGS. In the market this is not necessarily the case because of the numerical availability of NGC coins again over PCGS. In order to see if this time period had a bias here is the latest update of the facts:

                                                         Silver

             MS63     MS64     MS65     MS66     MS67     MS68     MS69     MS70     Total

PCGS         0          0           0          0           3          39        197       128        367

              (0%)     (0%)      (0%)     (0%)      (.8%)   (10.6%) (53.7%) (34.9%)  (100%)

NGC           1          3           1          5          18         118       353       190        689

              (.1%)    (.5%)     (.1%)    (.7%)     (2.6%)  (17.2%) (51.2%) (27.6%)  (100%)

With MS silver pandas the grading bias toward NGC has a ratio of 1.88 to 1. In investment quality coins both remain relatively constant with PCGS at 88.9% compared to 78.8% for NGC. Only 10.6% of PCGS coins made to MS68% grade Vs 17.1% for NGC and there were just .8% PCGS graded below the MS68 level while 4.1% of NGC coins we at MS67 and below. Its interesting to note that the lowest PCGS grade was MS67 while there were NGC coins at every grade down to and including MS63.

                                                          Gold

             MS63     MS64     MS65     MS66     MS67     MS68     MS69     MS70     Total

PCGS         1          0           0           2          4          23        166        64         260

              (.4%)    (0%)      (0%)      (.8%)   (1,5%)  (8.8%)   (63.9%) (24.6%)   (100%)

NGC           2          3           3           9         46        138        422        66         689

              (.3%)    (.4%)     (.4%)    (1.3%)   (6.7%)  (20%)    (61.3%)  (9.6%)   (100%)

In this update there is a significant increase in the NGC grading bias for gold pandas to a 2.65 to 1 ratio. In investment quality coins there is clearly a higher percentage PCGS  coins vs NGC of 88.5% to 70.9%. Note that there are almost as many PCGS MS70 gold pandas available as there are for NGC, but on a percentage basis PCGS MS70`s represent almost 25% of the total whereas NGC is under 10%. There are 8.9% PCGS`s graded at MS68 and 20% of NGC`s, with only 2.7% PCGS graded below MS68 against 9.1% for NGC.

Once again NGC continues to be favored by submitters of graded pandas by a significant margin ad once again the evidence would support the conclusion that NGC has tougher grading standards than PCGS. It would also support the conclusion that NGC graded coins are deserving of a slight premium over PCGS graded pandas and not vice versa.

Offline Contrapunctus

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Re: Tougher Grading Standards: PCGS or NGC
« Reply #2 on: April 11, 2014, 11:26:21 AM »
I heard generally PCGS have tougher grading standards but I love their clear plastic slab.