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Article #114: Why is a Coin Grading Service Important?

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Coins hold a wealth of information on that were especially beautiful were
their small faces, from the year of their hoarded the longest, often being passed
birth to the language spoken at the time, down within families. For most gold coin
from the metals a country holds valuable collectors, there are the highly coveted
to the cultural influences and historical rare gold coins and a lot of gold coin
figures that its people hold valuable. collectors are interested in these rare
The history of gold coins dates as far gold coins that they will offer high bids
back as 2,700 years ago. The first gold just to be able to get their hands on
coins in the world were issued in Lydia these.
around 640 B.C. certain internet websites The best way to get good deals, and avoid
will provide you with a lot of the bad ones, is to pick up some standard
information about the history of gold reference catalogues and study the
coins. pricing very carefully. As a rule, it's
Many countries produce gold coins for better to own one high quality coin than
collectors or for commemorative purposes. a bunch of mediocre ones.
These coins oftentimes emphasize unique By examining a coin, one comes to know
aspects of the country's culture. the geography, philosophy, sociology,
Because not many people know what artistry and other aspects of the culture
distinguishes precious rare coins from they existed in.
run-of-the-mill legal tender, these coins All too often, new coin collectors who
can remain in circulation for decades, try to go it on their own without
until a lucky coin collector recognizes professional help end up being scammed
them. The result is a coin with an out of hundreds or thousands of dollars.
unnatural appearance and a lower value. Some of the credible grading services are
Any cleaning will wear the coin surface, the PCGS, PCI, Anacs and the NGC. These
and though it may look brighter for a services have very good records and are
time, the coin will eventually lose its known to provide valuable and helpful
value to a collector. services to consumers with consistent and
Learning what to look for, how to accurate results in grading.
identify quality items, how to use the They seldom (or never) have been reported
lingo, and how to establish a fair price to be over grading. They are also known
will make the hunt that much more for their expertise in checking the
exciting. One thing is for certain, there authenticity of a coin with accuracy.
isn't a coin collector out there who will Other important factors are also
stop collecting just because the prices considered by these services such as
have risen a little and probably the same detecting any marks and problems with the
amount will consider selling their prize coins and adjustments in the dates and
collection to the highest bidder. mintmarks. Coin grading services are also
Commemorative coins are a popular form of able to detect if there was toning,
collection, as are rare minted coins like cleaning and repair that were made on the
those which had an error in their coins that were graded. Coin grading
stamping. If a certain set of coins services can also help if there is fraud
doesn't interest you, it won't be any fun and/or illegal activities being practiced
at all to become a collector. by dealers. They have hotline numbers
Most coin dealers will charge a lower available so that consumers can call and
premium on the sale of coins to their report any illegal act. This helps to
best customers. After all, it makes good ensure that consumers are safe.
business sense to get the most profit Grading services can also guarantee the
possible from a person who will do authenticity of the coin. Services like
business with you only once. the ones offered by PCGS, grading is done
Why is a Coin Grading Service Important? by at least three experts in accordance
Coin collecting has been a very popular with the standards set in their policies.
hobby to many people of all ages. The If a consumer thinks that his coin
marketing of coins has expanded widely over-graded, he can return the coin and
and because of this wide the market have it re-graded to ensure that all
prices of coins has varied immensely. information given was fair and accurate.
Before, the coin market was limited to a Coin grading services provide guarantees
small number of collectors and dealers. of their grades, and unlike dealers, they
At that time coins were priced in simpler do not provide this benefit. Dealers are
terms. Since the market has expanded, only able to provide opinions on grades,
dealers have been very inconsistent with they are unable to guarantee them.
the prices they set for the coins so that As coin collectors, people need to ensure
became the time when the need for a that they receive a fair for coins -
standard scale arose. That is where the whether buying or selling. Grading
coin grading service entered the scene. services are there to help and assist
Coin grading services are able to provide these collectors and the collectors need
services that determine the standard to be aware of the benefits of grading
practices so important in marketing. Any services so that they do not rely on
collector who sees the wide market of opinions given by dealers.
coins will see the importance of a When choosing a grading service, you must
grading service. There are unscrupulous always check the credibility of that
dealers that over grade the coins that service. This may be done by checking the
they sell and collectors need to be aware Internet to verify information regarding
of this. a certain coin grading service. Awareness
Coin grading services have standard is a very important factor needed to
scales for every coin available on the ensure safety among coin collectors.
market. One benefit grading provides, is A numismatist holds an ancient coin that
that coins will be assessed fairly and has passed through dozens or hundreds of
accurately. Antique coins and rare ones hands throughout the millennia. In
will be scaled depending on their origin, medieval times, the collection of ancient
quality and the purpose for which they coins was already popular, but it was
were released. A coin collector may need known as a hobby for kings. An avid coin
to use a coin grading service when buying collector will be able to tell you
a coin so that he is able to check the virtually every piece of history that
authenticity of the coin and if the coin surrounds any coin in their collection
is priced fairly. Sellers, on the other both because they tend to specialize and
hand, use the grading service to check if because knowledge is one of the most
they can generate income based on the important factors when it comes to
price they have set on the specific coin. starting and maintaining a collection of
This practice will also ensure that the any value or worth.
prices dealers set are not too high and Canadian coins, from those with a face
are close to the actual value of the value between 10 cents and $1, and struck
coin. before 1968 are between 50 and 92 percent
Many collectors are victims of fraud - silver, depending on the coin and year.
especially when buying rare coins. A They are worth a bit more than face
grading service will ensure that the coin value, depending on the price of silver.
is not a counterfeit one and this will Before purchasing coins, one must do much
prevent fraud in every negotiation. research about that coin. He must assess
Coins values often change through time. its current market value and make sure
The grading service will ensure that the that the coin is genuine.
coin will have the updated price set for State coins can appreciate in value if
it; or determine if a coin's value has you know what to look for. American coins
depreciated, depending on factors like have undergone several changes in
deterioration of the appearance of the material. For example, during World War
coin. II, pennies were made out of steel,
Coin collecting for investment purposes because copper was needed for the war
can be a tricky endeavor. effort.
As you become a more experienced coin A lot of people find collecting gold
collector your "eye" will mature and coins as not only an incredibly
you'll be looking more closely at details interesting hobby but a fairly lucrative
like the lettering on a coin, making sure one as well! Over time, your collection
the letters are still clear and not worn will accure value and parts of it can be
down. sold if you desire. As money, gold coins
There were only a few coins with this have been a convenient way for people to
error, and their scarce nature has made do their transactions. You can get a
them valuable to collectors. silver locating device or a magnetic pole
The Augustus Saint-Gauden Double Eagle is for finding loose coins in ditches, under
widely considered to be one of the most cars, or in other hard-to-reach places.
beautiful coins America has ever Or simply rely on your eyes to identify
produced. those gleaming metal circlets of
People hoarded coins as a way of potential wealth.
safeguarding their wealth. Those coins






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