If you have a coin that has been passed down from generation to generation, then you may be interested in having the coin appraised. This is wise so you know the coin's approximate value. Not only can this help you sell your coin if you want to, but it assists you in filing an insurance claim if the coin is stolen or damaged in a disaster situation. While appraisals are fairly simple, the ins and outs of the grading process may seem a bit confusing to you. Keep reading to learn about the answers to some common grading questions.
Who Completes The Grading?
Coin grading is often completed by one of four different companies. These include the Professional Coin Grading Service (PCGS), Independent Coin Graders (ICG), American Numismatic Association Certification Service (ANACS), and Numismatic Guaranty Corporation (NGC). Certain companies have become so popular because they are reputable, have a long-standing history of professional coin grading, and guarantee their grading scores. The businesses also fully guarantee their authentication process. This means that counterfeit coins will not make it through the grading process. This can put you and any potential buyers at ease when it comes to purchasing a rare coin.
If you are confused about the difference between an appraisal and a grading service, then you are not alone. An appraiser is not authorized to grade a coin. However, the individual will have a great deal of experience with different coins and their specific grades. This means an appraiser can typically give you a verbal indication of the grade of the coin and what the grade of your specific coin will typically be worth. Most appraisers will give an approximate value or range.
While coins can be sold without grading them, you will typically not receive the full value of the coin without having it graded. Grading is a guarantee of authenticity and value and many buyers will not pay full price for a non graded coin.
If you do decide to have the coin graded through a professional service, then your appraiser can handle this for you. You can also send the coin to the company yourself. There are some fees associated with grading that you will need to pay on top of the appraisal fee, so keep this mind. Coin appraisals should cost less than grading fees and this is why you may want to invest in an appraisal first. You basically want to know if your coin is worth enough that the grading is a good investment.
What Are The Grading Categories?
If you do decide to have your coin professionally graded, then your coin will be given a number and a letter designation. The letters stand for the basic grade category. For example, PO means poor, FR means fair, G is good, and F is fine. These basic grades are provided if the coin has been circulated. The highest designation for a circulated coin is "about uncirculated" or AU. This means that there is only a small trace of wear that is almost completely unnoticed when the coin is inspected visually.
If the coin has not been circulated at all and have no wear whatsoever, they will be graded a bit differently. They will instead be given a mint state or MS label. Even if the coin is uncirculated, it still may have a few flaws or inclusions. If it does, then it will be graded under 70, which is the highest possible number grade given to the coin.
Circulated coins will also be given a number. Once the category or main grade is determined, a specific number will be provided to better explain or pinpoint the quality of the coin. For example, a very good coin will be one that has some substantial wear. However, if the wear is more in the medium range, but the coin does not qualify for a fine rating, it will be provided with a 10. If wear is extensive, but not enough to classify the coin as good, it will be given an 8.
Uncirculated grade numbers do not change the value of the coin as much as the higher uncirculated ones. However, a higher number may sway a buyer to choose your coin instead of one that is graded a bit lower.
