Grading Coins – On your way to become a coin collector - PART FOUR
Grading coins involves evaluating the condition of a coin and assigning it a grade based on various factors, such as wear, preservation,stike and overall eye appeal.
Professional coin grading services, such as the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC), use a standardized process to grade coins.
This scale is called the Sheldon coin grading scale. As of today NCG is changing this to a Ten point grading system (NGCX) You can read more here ... https://www.ngccoin.com/specialty-services/ngcx-10-point-grading-scale/
Of course other counties have their own grading house such as South Africa’s SANGS (South African Grading Services) http://www.sangs.co.za/
Grading a coin is like giving a shiny, metal friend a tune-up. It's a process that involves evaluating the condition of a coin and assigning it a grade, just like how you would evaluate a car's performance and give it a rating.
The first step in grading a coin is to authenticate it. This is like checking the car's VIN number and making sure it's the real deal, not a counterfeit. We do this by comparing it to known examples and using various tools such as a microscope, loupe, and chemical tests.
Once the coin has been authenticated, it is then evaluated for preservation. This is similar to checking the car's mileage, tire wear, and oil levels. We look at things like wear and tear, shine, and overall appearance.
Factors such as the coin's luster, strike, and surface quality are also taken into account. The graders use a set of standardized grading terms, such as MS (Mint State) or AU (Almost Uncirculated) to assign a grade to the coin.
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The coin is then sealed in a tamper-evident holder, also known as a slab, with a label that displays the grade, denomination, and other relevant information. This holder protects the coin and also makes it easy to display the coin.
Just like how you would protect your car with a garage or cover. Some grading companies also provide additional services such as encapsulating the coin in a tamper-evident holder that is UV light resistant, similar to how you would protect your car's paint job with a ceramic coating.
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It's important to note that different grading companies may have slightly different standards and grading terms, but generally the process and criteria used are similar. Additionally, not all coins are graded and only a small percentage of coins are considered to be of high enough quality to be worth grading, similar to how not all cars are considered to be classic or collectible.
In general, coin grading can be done by both professional graders or by individual collectors. Professional graders are typically affiliated with a third-party grading service, while individual collectors may grade their own coins using guides and standards from various sources.
Coin grading is an important aspect of the coin collecting hobby, as it helps to determine the value of a coin and allows for fair and accurate buying and selling of coins, similar to how a car's condition and history affects its value and price.
Determining wear on a coin is an important part of the grading process. The amount of wear on a coin can greatly impact its value and desirability to collectors. Professional coin graders use a standardized set of guidelines to determine the amount of wear on a coin.
The first step in determining wear is to examine the coin under a microscope or loupe to look for signs of wear on the coin's high points. High points are the areas of a coin that are most likely to show wear, such as the hair on a portrait, the legs of an animal, or the edges of a design.
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The grader will look for signs of wear such as flattening or smoothing of the surface, loss of detail, or a change in the colour of the metal. They will also take into consideration the overall design, the coin's lustre, strike and surface quality to determine the coin's preservation and grade.
For example, a coin that has only light wear on the high points, with a good lustre and a well-defined design, would be graded as Extremely Fine (XF). On the other hand, a coin that has moderate wear on the high points, with a dull surface and a weak strike, would be graded as Fine (F).
LUSTRE, also known as luster, is an important characteristic of a coin that is used to determine its overall eye appeal and condition. Professional coin graders use a standardized set of guidelines to determine the lustre of a coin.
Lustre is the shine and reflection that is present on a coin's surface. A coin with a good lustre will have a bright and reflective surface, while a coin with a poor lustre will have a dull or lack of shine.
To determine the lustre of a coin, graders will examine the coin under a microscope or loupe and look for signs of wear, scratches or other damage that might have reduced the coin's luster.
They will also compare the coin to a coin of the same type and denomination that is in the same condition to get a sense of the coin's original luster.
For example, a coin that has a bright and reflective surface, with minimal signs of wear or damage, would be graded as having a good lustre. On the other hand, a coin that has a dull or lack of shine, with a lot of wear or damage, would be graded as having a poor lustre.
The FIELD is the background area of a coin, it's the flat and usually un-decorated area that surrounds the main design. The field is an important factor to consider when grading a coin, as it can provide important information about the coin's condition and overall eye appeal.
The field of a coin should be free of scratches, dings, and other types of damage. A coin with a clean and smooth field is more desirable to collectors and will generally be graded higher than a coin with a damaged field.
The field of a coin can also be used to determine the coin's original luster and surface quality. A coin with a good original luster will have a reflective surface, while a coin with poor original luster will have a dull or lack of shine on the field.
Additionally, the field of a coin can also be used to determine if a coin has been cleaned or altered in any way. A coin that has been cleaned will have a different color or tone on the field than a coin that is in its original condition, this can greatly impact the coin's grade and value.
A Side effect often noticed in fields and the edges of coins are something called BAG MARKS ...Coin bag marks are marks or indentations that are found on coins that have been stored in bags or other types of containers. These marks are caused by the coins rubbing against each other and against the walls of the container, and can vary in size, shape, and location depending on the type of container and the length of time the coins have been stored. Coin bag marks can range from small, barely visible indentations to large, deep marks that can significantly affect the coin's grade and value. Coin collectors and dealers often use the presence and severity of coin bag marks as one factor in determining the value of a coin.
Understanding above then brings us to the GRADES of coins.... or Specifically using the Sheldon Scale for grading.
The SHELDON Scale is a numerical system for grading coins that was developed by Dr. William Sheldon in the 1950s. The scale ranges from 1 to 70, with 1 being the lowest grade (virtually unidentifiable) and 70 being the highest (perfect condition). The Sheldon Scale is widely used in the coin collecting industry as a standard method for grading and evaluating the condition of coins.
The scale is divided into several different categories, each with its own range of numerical values:
1-3: Basal State
4-12: Poor
13-20: Fair
21-35: About Good
36-45: Good
46-53: Very Good
54-58: Fine
59-63: Very Fine
64-66: Extremely Fine
67-70: Uncirculated
Each category of the Sheldon Scale corresponds to a specific range of visual characteristics, such as the amount of wear on the coin, the presence of scratches or nicks, and the degree of luster or shine. A coin that is graded as a "60" on the Sheldon Scale, for example, would be considered to be in very fine condition, with light wear and some minor surface imperfections but still having a good overall appearance.
It is worth noting that the Sheldon Scale is just one of many grading systems and standards that are used in the coin collecting industry, and there are many factors that can influence a coin's grade and value, including rarity, historical significance, and market demand.
A bit of better explanation of each Scale ...
MS, which stands for Mint State, is a grading scale used to indicate the condition of a coin. Coins that are graded as MS are considered to be in the same condition as when they were minted, with no signs of wear or damage. The MS grading scale is divided into several different levels, each indicating a different level of preservation.
MS-70: A coin that is graded as MS-70 is considered to be in perfect condition. It will have no signs of wear or damage and will have a full strike, meaning that all of the details of the coin will be fully defined and visible. This is the highest possible grade for a coin and is extremely rare.
MS-69: A coin that is graded as MS-69 is considered to be almost perfect. It will have no signs of wear or damage, and will have a full strike. However, it may have some small imperfections, such as minor spots or toning, that prevent it from being graded as MS-70.
MS-68: A coin that is graded as MS-68 is considered to be in near-perfect condition. It will have no signs of wear or damage, and will have a full strike. However, it may have some noticeable imperfections, such as a small scratch or discoloration, that prevent it from being graded higher.
MS-67: A coin that is graded as MS-67 is considered to be in above-average condition. It will have no signs of wear or damage, and will have a full strike. However, it may have several noticeable imperfections, such as multiple scratches or discolouration, that prevent it from being graded higher.
MS-65: A coin that is graded as MS-65 is considered to be in average condition. It will have no signs of wear or damage, but may have a weak strike or other imperfections that prevent it from being graded higher.
The MS grading scale is widely used among coin collectors and dealers, and is considered to be a reliable way to determine the condition and value of a coin. Coins that are graded as MS can command a high premium, especially those that are graded at the higher levels of the scale.
AU, which stands for Almost Uncirculated, is a grading scale used to indicate the condition of a coin. Coins that are graded as AU are considered to be in excellent condition and can be quite valuable to collectors. The AU grading scale is divided into several different levels, each indicating a different level of preservation.
AU-58: A coin that is graded as AU-58 is considered to be in almost uncirculated condition. It will have only slight wear on the highest points of the design, such as the hair on a portrait or the legs of an animal. The overall design will be well-defined, with minimal signs of wear.
AU-55: A coin that is graded as AU-55 is considered to be in slightly circulated condition. It will have a little more wear on the highest points of the design than an AU-58 coin. The overall design will still be well-defined, but with more visible signs of wear.
AU-50: A coin that is graded as AU-50 is considered to be in lightly circulated condition. It will have more wear on the highest points of the design than an AU-55 coin. The overall design will be less well-defined, with more noticeable signs of wear.
The AU grading scale is widely used among coin collectors and dealers, and is considered to be a reliable way to determine the condition and value of a coin. Coins that are graded as AU can command a premium, especially those that are graded at the higher levels of the scale, like the AU-58.
It's worth noting that grading is subjective, and different grading services may have slightly different standards. Therefore, it's essential to use professional grading services and certifications when dealing with high-value coins.
Here are some other common abbreviations used in coin collecting:
VF - Very Fine: A coin grading term used to describe a coin that has moderate wear on the highest points of the design, but the overall design is still well-defined.
XF - Extremely Fine: A coin grading term used to describe a coin that has only light wear on the highest points of the design, and the overall design is still very well-defined.
UNC - Uncirculated: A coin grading term used to describe a coin that has not been circulated and has no signs of wear or damage.
EF - Extra Fine: A coin grading term used to describe a coin that has a small amount of wear on the highest points of the design, but the overall design is still very well-defined.
BU - Brilliant Uncirculated: A coin grading term used to describe a coin that has not been circulated and has no signs of wear or damage. The coin will also have a good luster and a crisp design.
PF - Proof: A coin grading term used to describe a coin that has been struck with special dies and planchets to create a mirror-like finish on the coin.
G - Good: A coin grading term used to describe a coin that has a lot of wear and damage, and the overall design is not well-defined.
AG - About Good: A coin grading term used to describe a coin that has a lot of wear and damage, and the overall design is barely visible.
F - Fine: A coin grading term used to describe a coin that has moderate wear and the overall design is still visible but not well-defined.
P, D, S, W - These are acronyms used to indicate the Mint where the coin was struck, P for Philadelphia, D for Denver, S for San Francisco, and W for West Point.
Above will help prospective coin collectors understand grading of coins, this is not by any means an exhaustive list of knowledge regarding this subject but it is a good starting point for anyone collecting coins.
Here is a Youtube video by PSGS explaining Grading ... https://www.youtube.com/watch?v=Apn-kYEl-Xw
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