A Guide to Coin Grading

Coin grading is the process of determining the condition and worth of a coin. If you’re buying coins as an investment, it’s essential to know what condition they're in before you purchase them. This is important because a coin's grade affects its value. If you’re planning to sell your coins, they will have to be graded for you to make a legitimate sale, and most serious buyers will require a grading certificate.

Here is what coin grading entails and why it’s important to go through the process. Have your coins already been graded and are you looking to sell them? Place a free advert on Junk Mail right now!

photo by Karol D on Pexels

What is coin grading?

Grading, or certifying, is when an independent third party evaluates a coin in person and assigns it a numeric grade based on its condition. The higher the grade, the more it's worth. The rarity of coins in high grades is higher than that of low grades. Collectors pay more for coins in high grades.

A coin's grade is generally determined by five criteria: strike, preservation, lustre, colour, and attractiveness. Several grading systems have been developed over the years. Certification services professionally grade coins for tiered fees. One ‘grade’ measures a coin's appearance.

The coin five criteria explained:

Strike

Strike in coin grading refers to a process of imprinting the design to a coin. Some coins have a strong strike and others have a weak strike. Generally speaking, strike in coin grading does not play a major role in determining the value of a coin.

Preservation

Surface preservation refers to the number of marks on the coin. The marks and their placement on the coin play an important role in determining the value of the coin.

Lustre

Mint lustre or the cartwheel effect refers to the sheen or the reflective qualities of the coin that are produced during the minting process.

Colour

Colour is a subjective factor in determining the value of a coin. The green colour of a struck gold coin can appear attractive to one person but not to another. Coin colour is not as important when determining the grade of a gold coin as it is when grading a silver or copper coin.

Attractiveness

The eye appeal of the coin is also an important factor in the process of grading a coin. A coin that has a lot of marks but is accepted in all the other grading criteria is still likely to be noted as having a below-average eye appeal.

Photo by Tengyart on Unsplash

Why is coin grading important?

Coins usually have a grade assigned to them when they are originally graded. The higher the grade, the more the coin is worth. A dealer or seller wants buyers to think that their coins are in excellent condition because then they will be able to sell them for more. Most collectors don’t know enough about grading to be certain of how high-grade a coin really is. Back in the old days, it didn’t matter what the buyer assumed about the condition because he would still pay the same price.

Coin Grading Scale

Numismatists grade coins based on a numeric scale.

One popular coin grading scale is the Sheldon Scale. The original Sheldon scale was developed in 1949 by Dr. William Herbert Sheldon to assess large cents. It was slightly modified in the 1970s for a wider range of coins. Coins are graded from 1 to 70. The Sheldon Scale, an internationally accepted coin-grading scale, starts at 1 and goes up to 70, with lower numbers representing worse grades and higher numbers representing better grades.

Originally, coin grades were assigned adjectives to describe the condition of the coin. Unfortunately, collectors and dealers alike had varied definitions for each word, leading to confusion, which made switching to a numeric system a more reliable method.

Where should I get my coin graded?

The Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC) are just two of the many options available to third-party coin-grading services. Joining either one of them is a good investment to ensure that your coins are graded accurately.

Understanding coin grading is fundamental to investment success. If you haven’t had your coins graded, you might be missing out on a lot of value. Get your coins graded and get the maximum purchase price by selling them on Junk Mail.