If you’re new to numismatics, or coin collecting, you likely have seen coins being labeled with a certain grade in your research and purchasing. It can be hard to decipher what each grade means, and which coins are a good value for the grade.
Here, we’ll provide a brief overview of coin grading, and why it matters!
Invest in high-quality coins today.
Coin grading is the system by which coins—both mint state (business strikes) and proof—are valued based on a number of characteristics, such as overall wear, how clear the design is, and raised edges.
Coin grading is used when buying, selling, or trading coins. It helps classify how perfect or damaged a coin is, and gives a scale and a name to a coin’s condition, rather than just giving a vague description.
There are three main categories for grading coins, each used to classify a different type of coin. A circulated coin is very different from a proof coin, so it’s important to have separate scales for each different coin type.
Circulated coins are coins that are used as currency. Because of this, they are susceptible to more damage and inconsistencies.
Uncirculated coins have never been in circulation, but they were not created specifically for collecting.
Proof coins are coins that were created specifically for collecting. They are uncirculated, but may not be perfect due to bag wear or improper mishandling. They are defined by their shiny, mirrored backgrounds.
Business strike coins are different than proof and circulated coins in that they were originally made for circulation, but are now a collector’s item. They differ from proof coins in that they were not struck in the same way, so they do not have the mirrored background like proof coins.
The higher a coin’s grade, the more likely it is to have a higher value. This is in part why the coin grading system exists—to give a framework for how much a coin is worth based on its appearance and striking.
If you’re looking to sell an especially rare or valuable coin, it’s best to have it professionally graded. There are professional grading services that will analyze your coin and grade it. Professional Coin Grading service (PCGS) and Numismatic Guaranty Corporation (NGC) are two of the most popular coin grading companies and are generally accepted by coin collectors to be trustworthy in their grading. If you’re thinking about selling, it’s best to have verifiable proof of your coin’s quality through one of these services, making it much easier to sell.
At Nationwide Coins, we are an authorized dealer of the NGC so if you have any questions about the best coins for your collection, our account executives are happy to help. Feel free to send us an email or give us a call!
Invest in high-quality coins today.