If you’ve ever wondered why some people send their coins to a grading company, you’re not alone. Whether you’ve inherited a coin collection, stumbled upon a rare find, or just want to learn more about the world of numismatics, understanding the process of coin grading is essential for any collector or investor. Grading a coin not only helps determine its value but also provides a professional, standardized assessment of its quality. In this guide, we’ll walk you through why people get coins graded, which types of coins are worth grading, why the grading company matters, and the most reputable grading services available.
What is Coin Grading?
Coin grading is the process of evaluating a coin’s condition, or "grade," based on a number of factors such as its wear, luster, surface quality, and overall appeal. The higher the grade, the more valuable the coin typically becomes, especially if it’s a rare or collectible item.
Why Should You Get a Coin Graded?
1. Determining Value
One of the main reasons people get their coins graded is to establish a definitive value. Uncirculated or high-grade coins can be worth significantly more than lower-grade or worn coins. The grade helps potential buyers or sellers understand the coin's condition, ensuring a fair price is set. If you’re looking to sell or trade, having a coin graded makes it easier to establish its worth.
2. Selling or Trading with Confidence
If you’re selling or trading coins, having a graded coin adds credibility. Buyers are more likely to trust a professional grading assessment, which can help you get better offers or sell the coin faster. A high-grade coin, especially when verified by a reputable grading service, can demand a premium price in the marketplace.
3. Protection Against Counterfeits
Coin grading helps verify the authenticity of a coin. Reputable grading companies, like PCGS, will authenticate a coin as part of their grading process. This is crucial for collectors and investors who want to avoid purchasing counterfeits or altered coins.
4. Preservation
Grading a coin also means that it’s placed in a protective case (a holder, often called a "slab"), which helps preserve the coin's condition. This is important not just for maintaining its appearance but also for ensuring its long-term value. Coins that are not protected may suffer from handling, exposure to the elements, or even environmental damage.
What Type of Coins are Worth Grading?
Not all coins are worth the cost and effort of grading. Generally, coins that are rare, in excellent condition, or of historical significance are the ones that tend to benefit most from grading. Here are some examples of coins that are commonly graded:
- Rare Coins: Coins with limited mintage or historical significance are often worth grading. For example, a 1909-S VDB Lincoln Cent or a 1933 Saint-Gaudens Gold Double Eagle.
- High-Quality Coins: Even common coins can be worth grading if they are in exceptional condition. A 2021 American Silver Eagle, for example, could be worth much more if graded as MS-70 (Mint State 70, the highest possible grade).
- Commemorative Coins: Coins issued to mark special events or anniversaries can often be graded, especially if they are in pristine condition.
-
Gold and Silver Bullion Coins: Precious metal coins, such as Gold Eagles or Silver Maples, can also benefit from grading, especially when they are in uncirculated or near-perfect condition.
On the other hand, coins that are heavily worn, corroded, or damaged may not warrant the expense of grading. Always consider the potential return on investment before deciding to grade a coin.
Why the Grading Company Matters
Not all grading companies are created equal. The reputation and credibility of the grading service can have a significant impact on the value of the coin. While there are several grading companies, the most widely recognized and trusted ones in the industry are Professional Coin Grading Service (PCGS), Numismatic Guaranty Corporation (NGC), and ANACS.
The Importance of Reputation
Coins graded by well-known and respected grading companies generally fetch higher prices in the market. Buyers trust these companies to accurately grade and authenticate coins. If you get a coin graded by an unknown or untrusted grading service, it might not be taken as seriously by collectors or investors. In some cases, it may even be difficult to sell or trade the coin at a reasonable price.
Major Coin Grading Companies
Here’s a breakdown of the top grading services:
1. Professional Coin Grading Service (PCGS)
Founded in 1986, PCGS is one of the most respected and recognized grading companies in the world. Their grading standards are widely adopted in the industry, and coins graded by PCGS are generally considered highly trustworthy. PCGS is known for its attention to detail and has a robust certification process. Their coins are encapsulated in a tamper-evident holder and come with a barcode for authentication.
2. Numismatic Guaranty Corporation (NGC)
NGC is another major player in the coin grading industry, founded in 1987. Like PCGS, NGC has built a strong reputation for accuracy and reliability. Their grading process is stringent, and they also offer secure storage and certification services. NGC is known for offering a wide range of grading services, including for paper money and tokens.
3. American Numismatic Association Certification Service (ANACS)
ANACS is the oldest coin grading service in the United States, founded in 1972. While it doesn't have the same widespread recognition as PCGS or NGC, ANACS still has a solid reputation in the numismatic community. ANACS is particularly popular for grading older or more obscure coins, and their prices tend to be more affordable than the bigger companies.
4. Other Grading Services
- Independent Coin Graders (ICG): This is another reputable company that offers coin grading services. While not as widely recognized as the top three, ICG has earned a good reputation for its grading standards.
- Certified Acceptance Corporation (CAC): CAC does not grade coins but certifies coins already graded by other services, ensuring that the coins meet high standards of quality.
How to Submit Coins for Grading
The process of submitting coins for grading generally involves a few steps:
1. Choose a Grading Company: Select the grading company that suits your needs based on reputation, cost, and the type of coin you are submitting.
2. Fill Out a Submission Form: Each company has specific forms that need to be completed when submitting coins.
3. Package Your Coins Safely: Carefully package your coins to ensure they are protected during shipping. Some companies provide special packaging materials.
4. Pay for Grading Fees: Grading fees vary depending on the company, the type of coin, and the value of the coin. The more valuable or rare the coin, the higher the grading fee might be.
5. Wait for the Results: Once the coin is submitted, it will be graded, encapsulated, and returned to you. This process can take anywhere from a few weeks to several months.
To Sum it All Up
Coin grading is an important step in the numismatic world that helps ensure the authenticity, value, and preservation of your coins. Whether you are a seasoned collector or just starting out, understanding the grading process and knowing which coins to submit for grading can greatly enhance your collection’s value and appeal. By choosing a reputable grading company like PCGS, NGC, or ANACS, you can ensure that your coins are properly evaluated and authenticated, giving you the confidence to buy, sell, or trade with ease.
If you’re unsure about whether your coins are worth grading, consider texting us pictures at 315-401-6869, giving us a call or stop in to the shop. We will gladly help you with any and all coin questions!