Coin collecting is much more than just a pastime; it is an opportunity to save fragments of history and invest money wisely. Grading is one of the most important skills any numismatist needs to master when collecting coins. The quality of the coin plays a very important role in determining the price and desirability of the coin.
Grading coins is like being a detective. You actually have to take a magnifying glass and look at each of the coins in detail to identify all the necessary aspects and features. This process enables the determination of how much a coin is worth and how rare or how common the said coin is. As you learn how to do this correctly, you will be able to make better decisions when you want to purchase or sell a particular coin.
About Coin Grades and Its Significance
Coin grades refer to the state of a particular coin. Coins are graded depending on the amount of wear that it has received and the sharpness of its features.
Why is this important? Because two coins physically resemble each other; their grades, on the other hand, can significantly alter the rate. For instance, a 100-year old coin with no visible blemishes and clear engravings can fetch a few hundred dollars more than a similar coin with significant wear.
Stages of Grading of Coins
There are several procedures of grading a particular coin. First, you will use a magnifying glass to examine the surface of the coin more closely. Here you are verifying whether the product has any scratch, mark, or if it has been deformed in any way. You will also consider how distinguishable the images and texts on the face of the coin are. These details assist you to determine the usage and circulation of the coin over the years.
Then, evaluate the obtained information with certain criteria. These standards assist in determining the quality of a coin, e.g., poor, good, very good, fine, very fine or excellent. Every category will have characteristics that you will look for in it. For instance, ‘fine’ may indicate light wear on the tips while an ‘excellent’ coin looks almost unused.
Factors that Contribute to Coin Grades
There are many factors that determine the grade of a coin. Luster is one; it is the shine that a coin has when it is newly minted. Coins with higher luster tend to receive higher grades.
‘Strike’ is the term used to describe how the image on the coin was transferred to the coin during the minting process. A coin that has been ‘struck well’ will have better designs and details imprinted than one that has a bad strike. Finally, whenever there is less wear, there is a higher grade associated with it.
Analyzing these criteria, you begin to pay attention to such features that distinguish one coin from another. Patience is needed to develop this skill, and it is very beneficial. Understanding grading can make you become a sharper collector and help you amass a great coin collection.
