Hobbies And Interests
Definition
Certified coins are also known as "graded" or "slabbed" coins. Certified coins are examined by coin experts who work for an incorporated grading service. They are identified, given a grade and placed in sealed, tamper-proof plastic, according to Bullion Gold Coins.com.
Services
The main grading services are the Numismatic Guaranty Corporation (NGC), the Professional Coin Grading Service (PCGS), the American Numismatic Association Certification Service (ANACS) and the Independent Coin Graders (ICG), according to Bullion Gold Coins.com.
Background
Originally an adjectival system (Good, Very Good, etc.) was used to grade coins, but in the late 1940s, an American named Dr. William Sheldon devised a numerical system using numbers from 1 to 70. Circulated coins are assigned numbers from 1 to 59, while the numbers 60 to 70 are used for mint state coins. Dr. Sheldon based his number selection on the relationship between the prices of American copper coins and their grades, but the system is now used for grading in most of North America, according to My Coin Collecting.com.
Scale
Coins are graded on a scale of 1 to 70, where 1 is an almost blank disc of metal and 70 is a perfect, unmarked coin. Coins may be advertised using the initials of the grading service to indicate their quality. For example, PCGS MS69 means that the coin is certified by PCGS as being in mint state, numerical designation 69, according to Gold Bullion Coins.com. Proof, prooflike and specimen coins are given the prefixes P, PL and SP and also assigned a numerical grade.
Significance
Coin grade is a major determinant of value. An uncirculated mint state coin can be worth hundreds of times more than the same coin in good condition but circulated, according to My Coin Collecting.com. In addition, collector coins must be carefully preserved to prevent damage. Even a light brush of the skin to an ancient, mint state or proof coin causes deterioration, according to 2 Clicks Coins.com.
Considerations
Although a certified coin will be more expensive than an uncertified coin in the same condition, buying or collecting graded and certified coins has many advantages for the coin collector. The coin is identified by an expert if there is a chance that it is a fake. The grade will often determine the value of the coin, as printed coin values refer to professionally graded coins, not the owner's guess about the grade of his coin. The certified coin is protected from damage, including environmental pollution, and can be "handled" without concern. Finally, when you sell the coin it will be easier to find a buyer. However, coin grading is an art, not a science, and two experts may assign a different grade to the same coin.