![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
Basics of Graded Coins
Coin grading is the process of determining the grade or physical condition of a coin, which is the key factor in its value. When buying and selling coins, it’s important to have basic knowledge of grading and its terms, since a small difference in grade can mean a big difference in price.
Consider purchasing grading publications from top grading services that you can reference to better understand grading.
Two of the most well known High-quality grading services are the Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS) they are well known for using thorough processes that involves numerous steps and specialized expertise. Each step is performed with the goal of accurately and safely grading your coins, after which they’re typically sealed in protective holders, marked with codes delineating their grade, and entered into the service’s database for later identification.
Not surprisingly, proper coin grading requires expert numismatists that can accurately compare your coins against published references. The best coin graders have had experience in the commercial sector, many having been professional coin dealers. It’s also common for ethical grading services to prohibit their graders from actively buying and selling coins so that there’s no conflict in their ability to appropriately grade your items.
What to Look for When Grading Coins
Luster - It is a determining factor whether or not a specific coin has been circulated. To have a higher grade, a coin must be technically intact and free from any form of imperfection or blemish.
Surface preservation - Abrasion on the surface of the coin and its location is a huge factor in grading a coin but it does not necessarily mean that abrasion can lower the grade of a coin. For example, if a good-looking coin has a severe abrasion on the back that is unnoticeable it will not count against the coin, but the issue may not be the same if the abrasion is located on the front or focal point.
Strike - Refers to the coin designing process wherein the coin is being stamped onto a planchet. In overall grading, strike does not carry a great deal of weight.
Coloration - For some coin collectors, preservation of original color of the coin has a huge impact on its value especially if it is a copper or silver coin.
Eye appeal - Some coins may not be perfect but collectors may find them attractive, however, it still requires an expert opinion to conclude that a certain coin is excellent in all aspects mentioned.
Coin Grading Symbols
Years ago, grading by descriptive adjectives such as "poor quality" or "mint condition” was used by American numismatists, but today, most graders prefer the numerical system.
Each grading service has its own philosophy about the fundamental purpose of grading, such as whether it’s simply a descriptive tool to communicate the amount of damage sustained after striking, or a ranking system to determine value. They agree, however, on these descriptive adjectives and numeric grades for proof coins, business strikes, and many world coins:
MS 60-70: Uncirculated.
AU 50, 53, 55, 58: About/Almost Uncirculated.
XF 40, 45: Extremely Fine.
VF 20, 25, 30, 35: Very Fine.
F 12, 15: Fine.
VG 8, 10: Very Good.
G 4, 6: Good.
AG 3: About/Almost Good.
FR 2: Fair.
PR 1: Poor.
Graded Coins
When you collect coins, be sure to have them graded to ensure their condition, authenticity, and identification. Then be sure to protect your coins by encapsulating them in hard plastic holders for safe, long-term storage, free from tampering.
Ensure condition
Grading your rare coins means you can verify their condition to help determine value for prospective buyers in the future. To ensure only coins of quality condition are registered, some top graders such as the Professional Coin Grading Service (PCGS) will not encapsulate coins with problems such as artificial toning, excessive cleaning, environmental damage, major scratches, or flaws in the planchet (the blank piece of metal on which a coin design is stamped).
Identify your coins
You can use the unique certification numbers provided by grading services to reliably identify your coins, whether they stay in your collection or enter the market.
