The PCGS Coin Sniffer™, a process incorporating advanced technology for detecting foreign materials and other enhancements on a coin’s surface, will be used in two roll-out phases on all PCGS Secure Plus™ submissions with the first step beginning in September or October 2010.

“When our testing and development are completed, the PCGS Coin Sniffer will analyze the surfaces of coins to detect foreign substances, whether they are organic or inorganic materials. We will begin first with organic substances,” said Don Willis, President of PCGS, a division of Collectors Universe, Inc. (NASDAQ).

“We are currently testing the detection of organic materials on coin surfaces and will begin incorporating that process on all PCGS Secure Plus submissions this fall. We are still in the development stage of detecting inorganic foreign materials, such as metals. Implementation of the PCGS Coin Sniffer for inorganic materials is planned for early 2011,” he told attendees at the PCGS Set RegistrySM awards luncheon at the American Numismatic Association World’s Fair of Money in Boston on August 13, 2010.

The PCGS Coin Sniffer uses dispersive X-ray spectrometry (EDX), Fournier Transform Infra-Red Spectral analysis (FT-IR), Raman Spectroscopy and other analytical techniques to detect the kinds of materials applied by so-called “coin doctors” to conceal problems with a coin or alter its surface to improve its appearance in an attempt to artificially increase the coin’s value.

Commonly used organic materials applied to coins include plastic resins such as Bondo, putty, caulk, wax, lacquer, varnish, acrylics, paint, ink, acetone, glue, and citric acid.

“Some coin doctors have even used soap, eggs, fertilizer, forehead and nose grease and urine,” Wills explained.

FT-IR spectroscopy in the PCGS Coin Sniffer process uses a beam of infra-red light that is reflected off a coin’s surface to detect molecules of foreign substances. Different molecules vibrate at different wave lengths. A complete analysis of a coin’s surface with simultaneous detection of all wave lengths can be completed in less than one minute.

Coins detected with foreign substances are classified by PCGS as “altered surfaces.”

Willis explained that some coin doctors use metals to build up certain areas on a coin’s surface, for example, attempting to create a full head on a Standing Liberty quarter, full split bands on a Winged Liberty/Mercury dime or improving diagnostic high areas. Metallic solutions such as solder, indium, Clorox®, iodine and potassium or potash have been applied to alter a coin’s surface.

Beginning next year, the PCGS Coin Sniffer will use EDX technology to analyze elements of coins on the atomic level. The FT-IR technology that will be implemented this fall analyzes coins on the molecular level. In the EDX process, a high-energy beam of electrons is focused on a coin’s surface. Resultant dispersed energy is measured and the atomic structure is determined.

“It’s similar to scanning with an electron microscope,” said Willis. “Foreign metals as well as metal fatigue due to high heat from a blow torch or laser can be detected.”

Willis also reminded the audience that expanded “plus” (+) grading is now available for all standard submissions and show submissions to PCGS at no additional cost.

Since 1986, PCGS experts have authenticated, graded and certified more than 20 million coins from around the world with a declared value of over $20 billion. For additional information, visit www.PCGS.com or call PCGS Customer Service at (800) 447-8848.

DGS announced today that effective immediately, all grading and certification operations at Dominion Grading Service (DGS) has been discontinued.

In a statement posted on the David Lawrence Blog page, the following explaination was given:

“In the time since we started DGS, both PCGS and NGC have made great strides and improvements to their grading technologies and practices and we no longer feel that our services are needed. Additionally, CAC is doing a fantastic job of assessing the quality in PCGS and NGC holders.

As for DGS, we simply do not feel that there is enough demand for collector coins at this time to merit our further investment. We have discontinued grading at DGS at this time. If you have DGS-graded coins to sell, please offer them to us for sale. We remain committed to the quality and standards of our grading at DGS and we still make two-way markets in DGS-graded coins. ”

In April 2008 DLRC launched Dominion Grading Service using the assets of the old PCI grading services thay had purchases as a base. At the time John Feigenbaum said ” “we had initially planned to keep the PCI brand name, but we quickly realized that it would be impossible to overcome the confusion that would ensue as we endeavor to recalibrate the [PCI] grading standards. Therefore, we have decided to discontinue the PCI brand in favor of an all-new grading company named Dominion Grading Service.“

Although Dominion used the same holder as PCI, that’s where the similarities end. DGS grading was based on strict standards (i.e. Photograde, for circulated coins). On mint state coinage, DGS graded conservatively with a focus on eye appeal, freshness of surfaces (including originality) and marketability.

Some of the innovative concepts at DGS were:

1. AuthentiVIEW ™: DGS introduced a service called AuthentiVIEW ™ which was integral to the submission process. All coins submitted above the “Budget” tier (i.e. valued above $100) were imaged — and this imaged serve as an authentication tool for any DGS certified coin. Anyone was able to go online, enter a serial # and see an image of the coin in the holder after it was graded.

2. Visual Population Report: DGS was the first grading service to have an entirely visual population report on its web site. Users who wished to look up populations were able to see the AuthentiVIEW images of all the coins graded. Feigenbaum stated at the time, “We anticipate this to be a useful tool for all numismatists. Just imagine the ability to see every 1901-S quarter we’ve certified; or a more common coin like the 1933-S Walker. This visual archive will be available to everyone.”

3. Net Grading of Problem Coins: Coins that have been cleaned, repaired, or damaged in any way will be slabbed in the same holder and label as undamaged coins, but the holder will describe the problem without “net grading the coin”. Coins will not be double-punished. The actual best determination of grade will be stated along with the notation of the problem. For example a coin may be described as: DGS AU55: Lightly Cleaned, Reverse scratches. According to Feigenbaum, “most coins are not perfect or original and it’s a shame not to have them in holders.”

NGC is introducing a new service line to perform metal composition testing at the submitter’s request. Metallurgic analysis is available for pattern, essay, trial and mint error coins, as well as tokens and medals. The cost of this service is $75 in addition to the NGC grading fee. Coins already certified and encapsulated by NGC can be re-submitted to NGC for metal testing and re-encapsulation for the flat fee of $75.

NGC performs composite surface scans of coins using x-ray fluorescence. While the tests are entirely non-invasive, they do allow NGC to peer beneath surface plating and any contaminants. Methods used by NGC are so gentle, however, that they can even be performed on coins that are still encapsulated. After testing, the results of analysis will appear on the NGC certification label along with the weight of the tested coin. NGC lists the three most abundant non-trace metals present on the coin’s surface.

Metallurgic analysis is performed at NGC’s facility by trained technicians. The turnaround time required for this service is approximately three-days in addition to the standard turnaround time for the accompanying service request. After certification is completed, tested coins are encapsulated in the Scratch-Resistant EdgeView® holder.

“NGC has used metal composition analysis for authentication purposes routinely, but we always believed that there was also a role for it to play in more precise attribution. Certainly this service will be a boon to collectors of pattern coins,” comments Rick Montgomery, NGC President.

NGC CEO, Steve Eichenbaum states that, “This service launch was really predicated on the availability of highly advanced and new technology. At NGC, we take innovation very seriously, and we continue to implement new services whenever we believe that they will meet the needs of collectors and numismatic professionals.”

While the next version of the NGC submission form, coming this summer, will include this service option, NGC is accepting coins for metallurgic analysis immediately. To submit coins for this service, prominently write “METAL COMPOSITION TEST” on the submission form, and include the additional $75 per coin service charge in the fee calculation at the bottom of the form. Coins to be tested should be listed on a separate submission form from coins not being tested. You can always request that multiple submission forms be shipped backed to you together.

Any questions about submission procedures or this new offering can be directed to NGC customer service at service@ngccoin.com or by phone toll-free at 1-800-NGC-COIN (642-2646).