Who was the first grading service?

[CaptHenway]

Does anybody know when INSAB started grading coins?

I am told that if you sent in a coin for authentication, you could ask for a grade and they would write it on a separate piece of paper that was returned with the certificate. Has anybody ever seen one of these?

Appreciate any help.

Tom DeLorey

[cpm9ball]

I had no idea that was your username! Please tell me, how much does a capped hen way?

 

Sorry, but I am unable to give you an answer to your question.

 

Have a nice day!

 

Chris

 

 

[RWB]

Was it 1978? I worked with Charles Hoskins on parts of the INS project, but it was so long ago that those brain cells have been recycled into running the HD-TV remote. (They used an old Kowaflex 2-1/4 sq SLR to take the photos and a local DC photo lab made contact sheets. These were cut apart for use on the certificates.)

[mommam17]

I thought ANACS was the first grading service in 1972??

[relicsncoins]

I thought ANACS was the first grading service in 1972??

 

I believe that is correct. I think they only authenticated coins in the mid 70's and didn't actually start grading them until the late 70's.

[johnny9434]

I dont think they ask you anymore. They just do it for you now

[CaptHenway]

ANACS was founded in 1972 as an authentication service, located in Washington, DC so that they could use the Smithsonian Collection as a reference.

 

The ANA grading guide came out in 1977, and in 1978 the ANA board voted to add grading as a service offered by ANACS. I was hired in November to start the grading service, and we launched on March 1, 1979.

 

At that time we considered ourselves the first grading service, not having heard of any other. Now there is an item in the current Coin World Online (should hit the mailboxes later this week) that says that INSAB, created by two people who were let go from ANACS when it moved from Washington to Colorado Springs in late 1976, claims to be the first grading service. One of the principals says that if anybody asked them to, they would grade a coin being authenticated and write the grade down on a slip of paper. The slip would then be sent out with the photo certificate.

 

Can anybody verify this? Did anybody ever see such a slip of paper with an INSAB imprint? Does anybody who collects certification/grading memorabilia have one?

 

Appreciate any help.

Tom DeLorey

 

[jesbroken]

Tom,

The following coin with certificate was recently sold on CoinCommunity.com/forum.

You might track the buyer and get a photocopy of the certificate.

Good luck,

Jim

 

We offer a full money back satisfaction guarantee with every item that we sell. We do ask that you contact us within 3 days of receiving your items as we sell many items on consignment and I need to know that our customers are happy prior to paying my clients. Also, please do not remove the coins from their holders as this could void your guarantee.

 

This is a gorgeous 1909S VDB Lincoln Cent. It has been certified by PCGS to be in Choice Extremely Fine EF45 condition. Prior to certification by PCGS, this coin had been certified as authentic by INSAB (International Numismatic Society Authentication Bureau) no. 7390F. INSAB was the very first third-party grading service, predating ANACS. This company began authenticating coins in 1976 and initiated grading services in December of that year. The INSAB certification (which is a sealed picture of the coin that has been assigned a number) will be included with this coin.

 

$1400.00 includes insured Priority Mail shipping with signature confirmation in the US. Canadian and overseas buyers should contact me for a price.

SOLD

 

Quoted from the following page:

Coin Community Forum

[CaptHenway]

Thank you. The listing here:

 

http://www.coincommunity.com/forum/topic.asp?ARCHIVE=true&TOPIC_ID=26651

 

shows the INSAB photo certificate, which only says that it is genuine without grading it. The text of the sale says that the coin had been previously authenticated, but does not say that it had previously been graded.

 

TD

[mommam17]

CaptHenway- Did you know Ray Mercer from Stamford, Ct.? He didn't grade for ANACS, but they consulted with him on commems time to time.

[Conder101]

The image from the CoinCommunity link would most likely have been authenticated/graded after 1987. It has a higher serial number than an example I have with the grading certificate dated 6/14/87.

 

INSAB began operation as an authentication service in 1975. From my notes they did announce that they would begin grading coins in mid 1978 but I have no evidence of when they actually did begin grading. The earliest INSAB certification I have seen is for a 1913 Netherlands 5 cent. (Serial # 627L) It did include a certificate with a grade but it is undated. It has to be after late 1976 as the certificate is signed by Hoskins and he did not leave ANACS until late 1976. The early pre-slab INSAB certificates seem to be quite rare today. INSAB lasted until at least 1997, but I have only seen one slab from the company after 1992.

 

The earliest KNOWN date I have for a US grading service was when ANACS began their "six month grading Experiment" on March 1st 1979.

[123cents]

This thread is very interesting and I appreciate the information that has been brought forth.

[cpm9ball]

This thread is very interesting and I appreciate the information that has been brought forth.

 

Yes, it has been, and I'm glad Tom chose to ignore my stupid joke.

 

Chris

[CaptHenway]

The image from the CoinCommunity link would most likely have been authenticated/graded after 1987. It has a higher serial number than an example I have with the grading certificate dated 6/14/87.

 

INSAB began operation as an authentication service in 1975. From my notes they did announce that they would begin grading coins in mid 1978 but I have no evidence of when they actually did begin grading. The earliest INSAB certification I have seen is for a 1913 Netherlands 5 cent. (Serial # 627L) It did include a certificate with a grade but it is undated. It has to be after late 1976 as the certificate is signed by Hoskins and he did not leave ANACS until late 1976. The early pre-slab INSAB certificates seem to be quite rare today. INSAB lasted until at least 1997, but I have only seen one slab from the company after 1992.

 

The earliest KNOWN date I have for a US grading service was when ANACS began their "six month grading Experiment" on March 1st 1979.

 

INSAB did not begin operations until after all of the ANACS authenticators were terminated at the 1976 ANA convention in New York. John Hunter was then rehired to move ANACS to Colorado Springs. Hoskins and Fazzari then formed INSAB in Washington.

 

I would appreciate a copy of your notes regarding the INSAB announcement from 1978 concerning the start of grading.

 

FWIW, in the Summer of 1978 I was already in secret negotiations to come to Colorado Springs to start the grading service, and would probably remember the INSAB announcement if I had seen it. Perhaps I did not.

 

TD

[WoodenJefferson]

This thread is very interesting and I appreciate the information that has been brought forth.

 

(thumbs u (thumbs u

[robec1347]

This thread is very interesting and I appreciate the information that has been brought forth.

 

Yes, it has been, and I'm glad Tom chose to ignore my stupid joke.

 

Chris

 

He must have you on POOF. BLOCKED.

[Conder101]

Haven't been able to locate yet the reference I had for INSAB starting up in 1975. Have found reference to INSAB beginning grading in December of 1976 with the statement that this was several months after they began authenticating coins. Coin World Almanac 1990 edition, Page 525, third paragraph.

 

On the ICG website F Michael Fazzari's "bio" indicates that he was associated with INSAB and that it predated ANACS as a grading service, but it only claims that INSAB predated ANACS by six months, so sometime around September 1978. Michael might be a good source to ask for possibly first hand information.

[mommam17]

So ANACS was authenticating coins from 1972 to about 1978, then started grading them?

[cpm9ball]

I mentioned once before that this has been an interesting thread, but it has presented a predicament for me. You see, a few years ago, I acquired a copy of the book, The COIN DEALER NEWSLETTER: A Study in RARE COIN PRICE PERFORMANCE 1963-1988. It is still in the original shrink wrap, and I'm a bit hesitant to remove the wrap, but I'm curious to know if it mentions ANACS and INSAB in those early years. Has anyone ever read a copy of this book?

 

Chris

 

[CaptHenway]

So ANACS was authenticating coins from 1972 to about 1978, then started grading them?

 

Yes. It began doing authentication only in 1972, and added grading on March 1, 1979 while continuing to do authentication.

 

TD

[physics-fan3.14]

INSAB did not begin operations until after all of the ANACS authenticators were terminated at the 1976 ANA convention in New York. John Hunter was then rehired to move ANACS to Colorado Springs. Hoskins and Fazzari then formed INSAB in Washington.

 

TD

 

Can you tell me more about this incident? I'm not too familiar with ancient history, but I'm always interested. What could possibly have led to the termination of all of the authenticators?

[CaptHenway]

John Hunter never told me why they were all let go, just that they were, and that he was then rehired to reboot the service in Colorado Springs.

[Conder101]

Thanks for mentioning that book. I just picked up a used copy this past October and didn't even think of checking there. I'll let you know what I find.

[cpm9ball]

Thanks for mentioning that book. I just picked up a used copy this past October and didn't even think of checking there. I'll let you know what I find.

 

Thanks, Conder! Please do keep me posted. I may want to rip the shrink wrap off just to read what it has to say.

 

Chris

[DWLange]

John Hunter never told me why they were all let go, just that they were, and that he was then rehired to reboot the service in Colorado Springs.

 

My understanding is that they were not let go for cause, but rather had to be terminated for administrative reasons when ANACS moved from Washington DC to Colorado Springs. Whatever offer was made to Fazzari and Hoskins to rejoin ANACS in CS was evidently rejected by them, while Hunter did sign aboard. Perhaps, they just thought that they could do a better job on their own.

[mommam17]

These companies were grading coins 10 years before PCGS started. What if they stayed top dog? Things could of been different! Maybe no PCGS or NGC?

[Conder101]

No mention in 1970 of the creation of ANAAT (precursor to ANACS). In fact there is absolutely no mention of any of the authentication/grading services from 1970 til July 1981. The first mention is about the creation of the MS-63 grade "a couple years ago by the ANA.

 

(Frankly the book is of very limited use, it only contains one or two copies of the CDN for each years and just a few of the market commentary articles. Most of the articles concern themselves strictly with the prices various coins are bringing. On occasion there is a comment about grading but so far nothing at all on the various authentication/grading services.)

 

This is the only part that pertains to Capt Henway's request. If others are interested the following are the books other comments about the services from 1981 till the end of 1988. Frankly they show very little interest until after the creation of PCGS.

 

The next mention is in the December 1984 CDN where they list prices for the 1983 DDR cent in AU, 60, 63, and 65 for both ANACS and non-ANACS coins to show that you do better with ANACS papers.

 

In the December 1985 monthly Anthony Swiatek makes the comment "What about grading certificates? It depends upon the issue.I can purchase certain certificates at 50% of bid prices!" but he makes no mention of which ones.

 

May 16th 1986, they degrade some ANACS papers illustrating how some dealers will pay bid for 1985/86 paper but only 50% for 1983 papers. Then they gush over the creation of PCGS and say it is possibly the answer to the grading controversy.

 

July 4 1986 they mention the ANA Board discussion about adding the MS64 grade and the decision to go to all 11 MS grades.

 

August 22 1986 They say there are three major grading services on the teletypes, ANACS, PCGS, and NCI.. They there are many other competent grading services which are not as widely known but that if they become more widely accepted they will report their prices as well. It says that NCI was organized in June 1984. (The earliest record I had of them before this was Dec 1984. In the NCI Grading Guide they say 1985.)

 

In the December 1986 We find an early warning from Q D Bowers to buy the coin not the certificate or slab. He mentions seeing PCGS and ANACS MS-63's that he would call MS-60 or less. He relates sending 10 coins to four different grading services. (in 1985) There was no agreement on the grades and grades on the same coin could vary from AU-55 to MS-65. First NCI ad in Dec 19th issue.

 

March 1987 Monthly summary by Tom Noe as a cheerleader for PCGS with it being "the first time in the history of the industry there is a standard by which all coins, past or present, will be rated." Also the first mention of a "well known Est Coast dealer" starting up his own grading service because he feels PCGS and NCI need some competition. This is the first mentioning of NGC coming.

 

April 1987 sees the first mentioning of the beginning crumbling of the sight unseen market.

 

November 20th NGC is in operation, competition between the grading services is mounting.

 

April 1988 decent comprison of the top four services ANACS, NCI, PCGS, and NGC. I learned a couple things such as when NCI began slabbing, (1987 but they continued with the certificates as well.) and that they were the first to let the submitter specify a minimum grade. (if it didn't make the grade it was returned without slab or certificate and you paid a flat fee.) PCGS is credited with being the first of the four to slab coins and that the sealing of the coins in the plastic housing after grading revolutionized the rare coin business. Several other services had been doing it for as long as two years before PCGS did.

 

May 1988 sight unseen still crumbling, PCGS standards noticeably tightening, NGC coming on strong with all coins being finalized by the same twp graders, John Albanese and Mark Salzberg. The establishment of the American Numismatic Exchange for sight unseen trading. (This eventually lead to the creationof the ANE pinksheet of sight unseen prices which reached a low of about 25% of the graysheet prices before the ANE folded.)

 

July 1 1988 CCDN gives prices for each of the four services. in it ANACS, PCGS, and NGC are all pretty evenly matched, NCI is significantly lower. This is the only issue of CCDN listed in the book.

[Conder101]

These companies were grading coins 10 years before PCGS started. What if they stayed top dog? Things could of been different! Maybe no PCGS or NGC?

Frankly I think if ANACS had switched to slabs instead of staying with the photocertificates for close to 4 years after PCGS and 3 years after NGC they might have had a good chance at staying on top. They were already established and enjoyed an excellent reputation. I also feel the sale of ANACS to Amos Press and moving away from the resources of the ANA may have hurt them as well.

[123cents]

Great information Mr. Lange and Condor. Who actually was the first to grade a coin and put it in a plastic slab? Was it ACG?

[RWB]

The ANA's involvement paralleled the older APS "Expertization."