1. Automated Coin Grader Richard Bassett – April 3, 2002 Updated: July 23, 2003 Asst. Professor Information Systems Western CT State University

2. Goal of Project Develop a system that will be used to grade, appraise and authenticate valuable collectibles items such as rare coins providing consistent and repeatable results.

3. What is Grading? Assigning a grade to coins, or other rare collectibles, helps to establish the condition and the state of preservation of the collectible. Accurately determining the condition of a coin is significant as it is a large contributing factor to determining the value of a collectible in the marketplace.

4. Rationale Rare coins are presently graded by human hand and eye inspection that often produces varied, inconsistent and sometimes dubious results. A difference of a single grade can often mean thousands of dollars in the value of the asset. Judgment is suspect with subjectivity and great financial incentives entrenched in the process. Even the experts have difficulty arriving at a consensus

5. Source: An online grading Quiz had the following results: G (1)VF20 (15)EF40 (33)AU50 (5) F12 (2)VF30 (28)EF45 (24)AU55 (1) F15 (3)

6. Diversity in Denominations creates tremendous challenges 1 Cent 5 Cent 10 Cent 25 Cent 50 Cent 1 Dollar Large Cent 1793 - 1857 Liberty 1883 – 1913 Barber 1892 – 1916 Barber 1982 – 1916 Walking Liberty 1916 - 1947 Eisenhower 1971 – 1978 Flying Eagle 1856 – 1858 Buffalo 1913 – 1938 Winged Mercury 1916 – 1945 Liberty 1916 – 1932 Franklin 1948 - 1963 SB Anthony 1979 – 1999 Lincoln Cent 1909 – Present Jefferson 1938 – Present Roosevel t 1946 - Present Washingt on 1932 - Present Kennedy 1964 – Present Sacagawea 2000 – Present

7. What about my pocket change? Modern business strike coins intended for circulation are worth little more than face value as they are made in very large quantities.

8. Raw Coins Loose coins Can be circulating currency, like the change in your pocket. Can be uncirculated currency, like rolls of coins, that are pulled / hoarded before reaching the public.

9. Slabbed Coins Raw coins that are graded by for profit companies. There have been 72 grading companies since 1986. Coins are sealed in holders to protect them & prevent tampering. A method of trading ‘sight unseen’ Still a subjective process as there are large inconsistencies between grading companies. Grades are suspected to be at Market Grade not true technical grade

10. What is a rare coin? Factors that often determine the rarity of a coin, and hence the value, include: # struck, estimated surviving population, varieties, market size, supply/demand and sometimes age.

11. Example of Rarities 1909 Lincoln Cent Although almost 100 years old, the 1909 is not a rarity itself as 72.7 million were struck and many still survive. But the 1909-S (1.8 million) and 1909-S VDB (.5 million) are rarities, especially the latter.

12. Example of Rarities 1909-S VDB Cent Values Good - $430 Fine - $590 Extra Fine - $700 MS-60 - $875 MS-63 - $975 MS-65 - $1250 Source: PCGS – Collectors Universe Apr. 2002

13. Example of Modern Rarity 1995-W Silver Eagle Only 30,000 exist Struck at West Point This coin was free as part of Commemorative set in 1995 Has a current value of $2,000 - $4,500 It is the corner stone in completing a collection, thus creating a strong demand

14. Example of Rarities 1856 Flying Eagle Cent Values Good - $4,550 Fine - $5,600 Extra Fine - $6,500 MS-60 - $8,975 MS-63 - $14,500 MS-65 - $19,000 Source: PCGS – Collectors Universe Apr. 2002 Less than 2500 of these pattern coins were minted

15. Research questions investigated How bad are the 3 rd party grading services? How diverse are the interpretations of experts when it comes to grading rare collectibles? Is grading an art or a science? Can a system be built that can reliably and consistently determine the grade/condition of a rare collectible? Is present day scanning technology sufficient enough to provide images that are robust enough? Is it possible to train a system with enough expert knowledge from the collectible domains to properly perform feature recognition? Does specialized hardware have to be developed to accomplish the goal ?

16. Automated Coin Grader Wrap Up Boldly going where 2 others have been in the past… PCGS & Compugrade