Coins deemed upgradable by some third-party grading companies were at one time returned to the customer in a container known as a “body bag“. Usage dates back to the mid-1990s. The companies that issued body bags had a policy of not encapsulating problem coins. Getting submissions back in body bags was bad for dealers and bad for the hobby – as dealers could just remove them from the flip or pouch and sell them as raw and “problem-free”.
In late 2008, PCGS introduced its “Genuine” grading tier that offered authentication encapsulation services for coins that have been repaired, cleaned, altered, or damaged. It has since become standard practice to encapsulate all genuine coins and give some sort of details grade and explanation as to why the coin was not properly graded.
* * *