Coin grading is the process of determining the condition of a coin and assigning it a number from 1 to 70 to indicate its grade. As simple as coin grading sounds, it provides the owner of a graded coin with more benefits than a typical bullion coin. Why is this? The reason is rooted in the importance of coin grading as a practice.
If you’re looking to buy some of the highest-quality coins, keep reading. Here’s proof that coin grading matters.
What Is Coin Grading?
Think of coin grading as a report card for coins. Through the coin-grading process, an expert assesses the condition of a coin, normally on the widely accepted Sheldon Coin Grading Scale. On this scale, which dates back to the late 1940s, 1 is the lowest grade and 70 is the highest grade. A coin with a perfect grade of 70 is, literally, in mint condition—no imperfections, no tiny scratches.
As the grade increases, the price of a coin can increase as well.
Four companies dominate the coin-grading industry:
- Professional Coin Grading Service (PCGS)
- Numismatic Guaranty Corp. (NGC)
- Independent Coin Graders (ICG)
- American Numismatic Association Certification Service (ANACS)
All four of these services rely on some form of the Sheldon Scale to grade coins.
What Are the Benefits of Coin Grading?
When you buy a graded coin, you know a trained expert has carefully examined and evaluated it. A coin grader weighs five aspects of a coin before assigning a grade: color, eye appeal, luster, strike, and surface preservation.
Once the grading process is complete, a coin’s grade is certified. A graded coin carries a numismatic value along with the melt value of the metal itself. Numismatic value takes into account factors such as condition, availability, and historical significance, and acts as an extra barrier of security for a graded coin.
By comparison, the price of a bullion coin generally correlates with its weight in gold or silver, rather than the coin’s condition or availability.
For coin buyers, a certified grade gives them confidence that what they’re purchasing matches the quality they’re seeking. You might think of it as a Good Housekeeping Seal of Approval for consumer products!
With standardized grading from one reputable coin distributor to the next, a buyer can effectively evaluate a coin. Without a coin-grading system in place, it becomes more of a potentially costly guessing game.
Why Is Coin Grading Important?
When you purchase coins that are graded by professionals, you’re gaining peace of mind that a third party has verified a coin’s merit. Plus, if you want to sell a coin, you can guarantee that a prospective buyer can quickly determine their personal evaluation of the coin based on its grade.
Furthermore, a graded coin can be less susceptible to the ups and downs of market prices for precious metals than bullion coins. This stability allows a graded coin’s price point to be more closely tied to its condition and availability.
If you own a graded, certified coin, you’re in a great position over the long run to potentially maximize the rewards of gold and silver ownership.
Explore U.S. Money Reserve’s inventory of graded, certified coins online or call 1-844-307-1589 to learn more today.
