Rare Coin Grading

Rare Coin grading is the process of determining condition of a coin, one of the key factors in identifying its collectible value. A rare coin's grade is generally determined by six criteria: strike, preservation, luster, color, attractiveness, and occasionally the country/state in which it was minted. Several grading systems have been developed. Certification services professionally grade coins for tiered fees.

ANACS- The First Grading Service

Years ago coins were bought uncertified, or as many call it “raw.” This was standard practice for collectors until the first grading service, ANACS, was founded in 1972. ANACS, or American Numismatic Association Certification Service, was the first grading service in the United States to certify rare coins. The grading service ANACS was originally created by the ANA or American Numismatic Association to address a couple major problems that plagued the coin industry: coin counterfeiting and coin altering. The service quickly grew and was certifying as many as 3,000 coins a month to start. From there the service quickly grew and began certifying thousands of coins a day! After many years of running ANACS itself, the ANA eventually sold ANACS to private investors. ANACS still exists today and is respected as one of the top 3 rare coin grading services.

The Birth of PCGS- Professional Coin Grading Services

PCGS was founded in 1986 by a group of coin dealers who realized there were many issues with coins being sold that were "over graded." In other words, the coins were represented to be of a better quality than they actually were. Some unethical coin dealers would sell coins for premiums that were not warranted because the actual quality of the coin was not what they said. To address this issue, PCGS was found, grading standards were established, and soon PCGS would become one of the biggest grading services in the country. Its parent company, Collectors Universe would later become publicly traded on the Nasdaq on July 22, 2005. As of 1/31/2020, Collectors Universe proudly states that it has graded 78,882,395 collectibles to date. Many of these include rare coins such as Silver Eagles and Morgan Silver Dollars.

The Birth of NGC- Numismatic Guaranty Corporation

NGC was originally found in 1987 in Parsippany, New Jersey. Later, it would move its headquarters to Sarasota, Florida. NGC is also known as Numismatic Guaranty Corporation. NGC has become one of the top 3rd party grading services in the United States and has certified more than 45,000,000 coins to date. It is also the official grading service of the American Numismatic Association and the Professional Numismatists Guild. NGC and PCGS are known as the top 2 rare coin grading services. NGC is also well known for being the leading grading service of ancient rare coins.

Which Grading Service Should I Buy?

All three grading services are very reputable and add peace of mind when buying coins. The two largest and most well respected 3rd party grading services are PCGS and NGC. In our experience, we see the greatest resale value when one of those two grading services certifies a coin. We recommend that coin collectors buy certified coins, if concerned about the authenticity or quality of the coins they are purchasing. Also, we find that reselling certified coins can sometimes be easier since a lot of the guesswork has been taken out because of the grading process. Each coin is assigned a numerical grade from 1 being the lowest to 70 being the highest. Therefore, arguing about the coin quality will not be an issue with a graded coin. 

What are the specific grading criteria used by ANACS, PCGS, and NGC?

The specific grading criteria used by ANACS, PCGS, and NGC involve a detailed evaluation of various aspects of a coin's condition, including its luster, strike, surface preservation, and overall eye appeal. Each service has its own set of guidelines and standards for these categories. For instance, they assess the sharpness of the coin’s design, the quality of its surfaces, and the presence of any imperfections or wear. These criteria are crucial for determining the coin's grade on a scale from 1 to 70, where 70 represents a perfect, flawless coin. Despite similarities in their grading standards, minor differences can occur in their grading outcomes due to the subjective nature of the process.

How do the grading fees and turnaround times compare among ANACS, PCGS, and NGC?

The grading fees and turnaround times among ANACS, PCGS, and NGC vary significantly. PCGS and NGC generally charge higher fees compared to ANACS, reflecting their market dominance and the premium associated with their grading. The cost also depends on factors such as the coin's value, the desired turnaround time, and additional services like conservation or special labels. Turnaround times can range from a few weeks to several months, depending on the service level chosen and the workload of the grading company. For example, expedited services cost more but promise faster grading times, often within a few days or weeks.

What are the potential benefits and drawbacks of each grading service for different types of coins, such as modern coins versus ancient coins?

FAQ

What is rare coin grading?

Rare coin grading is the process of assessing the condition or quality of a coin, which greatly influences its value. Professional grading services use standardized criteria to evaluate and assign a grade to each coin.

Why is coin grading important?

Coin grading is crucial because it determines the coin's market value, ensures authenticity, and provides a common language for buyers and sellers.

What are the major coin grading scales?

The most widely used grading scale is the Sheldon Scale, which ranges from 1 to 70, with 70 being a perfect, flawless coin.

Who are the top coin grading companies?

The top coin grading companies are the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC).

How do I get my coins graded?

You can submit your coins directly to a grading company or through an authorized dealer. The process involves filling out a submission form, paying the grading fee, and sending the coins securely to the grading service.

What factors do grading companies consider when grading coins?

Grading companies consider factors like luster, strike quality, surface preservation, and overall eye appeal.

What is the difference between circulated and uncirculated coins?

Circulated coins have been used in commerce and show signs of wear, while uncirculated coins have not been used and retain their original mint condition.

What does MS mean in coin grading?

MS stands for Mint State, which refers to coins that are in the same condition as when they were minted and have not been circulated.

What is the highest grade a coin can receive?

The highest grade a coin can receive is 70, which indicates a perfect coin with no visible flaws even under magnification.

How does toning affect a coin’s grade?

Toning can either enhance or detract from a coin’s grade, depending on its appearance. Attractive, natural toning can increase a coin's appeal, while unattractive or artificial toning can decrease it.

What is a proof coin, and how is it graded?

Proof coins are specially made with a high-quality finish for collectors. They are graded using the same scale as regular coins but are typically denoted with a PR or PF prefix.

Can cleaned coins be graded?

Yes, cleaned coins can be graded, but the cleaning can significantly reduce their grade and value. Grading companies usually label them as "details" coins, indicating the cleaning.

What does "details" mean in coin grading?

"Details" grading indicates that a coin has a notable flaw, such as cleaning, damage, or an alteration, but is otherwise genuine.

What are grading slabs?

Grading slabs are tamper-evident, plastic holders used by grading companies to encapsulate and protect graded coins, displaying the grade and other information.

How accurate are coin grading companies?

Top grading companies like PCGS and NGC have high accuracy and consistency standards, but minor discrepancies can still occur between graders.

Can the grade of a coin change over time?

While the grade of a coin is generally stable, environmental factors or improper storage can affect its condition and potentially its grade if re-evaluated.

What is the difference between strike and grade?

Strike refers to the quality and detail of the coin's design as it was originally minted, while grade refers to the coin's condition and preservation over time.

How do grading companies handle counterfeit coins?

Grading companies have experts and advanced technology to detect counterfeits. Suspected counterfeit coins are not graded and are returned to the submitter.

What is a "first strike" or "early release" coin?

These terms refer to coins that were among the first to be minted from new dies or released early in the production run, often noted on the grading label.

What is the significance of a coin's certification number?

The certification number is a unique identifier that links to the coin's grading record, which can be verified online for authenticity and details.

How do environmental factors affect coin grading?

Environmental factors like humidity, temperature, and exposure to pollutants can cause corrosion, toning, or other damage that affects a coin's grade.

Can I grade coins myself?

While you can assess your coins using guidelines, professional grading by recognized services is recommended for accuracy and market acceptance.

What are cameo and deep cameo coins?

Cameo and deep cameo refer to proof coins with frosted designs and mirrored backgrounds. Deep cameo coins have a more pronounced contrast.

How long does the coin grading process take?

The grading process can take from a few weeks to several months, depending on the service level chosen and the grading company’s current workload.

What is the cost of getting a coin graded?

Grading fees vary based on the coin’s value, the grading service, and the turnaround time, typically ranging from $20 to several hundred dollars per coin.