New Coin Collector? Why You Should Have Your Coins Graded and How Coin Grading Works

If you have just fallen in love with collecting coins, then you likely already know that you have a lot to learn. Thankfully, the Internet has made finding out whether a coin is valuable or not a bit easier, and it has also made getting coins graded more easy. You can simply send your coins in to a professional coin-grading service and then look forward to their being sent back to you graded and "slabbed." As a new collector, you may not realize how getting your coins graded can benefit you, and you might not even understand how the grading process works. Read on to learn how you can benefit from having your coins graded and how the grading system works. 

Why Have Your Collector's Coins Graded? 

Even if you never plan to sell the coins you collect, knowing their value is important. Every collector loves that moment when they find out that a coin they stumbled upon in a bank roll or obtained as change at a supermarket is worth much more than its face value! If you are collecting coins in hopes of coming across some valuable ones and making some extra cash by selling them, then knowing their value is especially important. 

You likely already know that the condition of a coin is also part of the equation that determines the current market value, but you may be relying on your eye alone to determine the condition. In doing so, you may end up with coins that you think are much less or much more valuable than they are because you are not an expert who knows exactly which coin flaws lower their values the most and that even coins that appear to be in mint state (MS) could instead be proof (PR) or specimen (SP) coins that are even more valuable than you would expect your coin is worth. 

Many coin-grading services will also place your coins in high-quality cases after grading them; this is a process called "slabbing." This case will contain both your coin and a professional-quality label with its given coin grade on it. You can then keep your coin in the case to protect it from additional wear and tear as long as you own it. If you choose to sell your coin, then the buyer will know that the coin grade is authentic due to its encasement with the coin, and this will make the sale go much more quickly and smoothly. 

How Does Coin Grading Work?

The grading scale in use by coin graders today is called the Sheldon Coin-Grading Scale. This scale was originally created in 1949 and then updated in 1970 when it was determined that the original scale didn't cover every detail of a coin quality quite enough. The current scale, like its predecessor, allows the coin grader to use their expert eye to give each coin a letter grade that is carefully given based on the coin condition. Then, coins that are not given the worst letter grades are also given number grades. 

When your mint-condition, uncirculated coins are in the hands of an expert at the coin-grading service, the grader will first give your coin a letter grade based on its condition and then a number grade after they examine the coin even more thoroughly with a powerful magnifying glass. All coins that were uncirculated are rated mint state (MS). However, even though they may appear perfect to the untrained eye, they are then given number ratings that range from 60–70. A mint state, uncirculated coin that is in absolutely immaculate condition, even under intense magnification, will be rated MS70, On the contrary, a mint state coin that lacks luster, has nicks, or shows one of many other signs of slight damage would be rated MS60. Of course, these are the two extremes, and as you can imagine, most MS coins fall somewhere in the middle. 

Proofs are designated PF and then also rated on a scale from 60 to 70. 

Coins that are in great condition, but were briefly circulated, will be rated choice about uncirculated (Ch. AU) or about uncirculated (AU). 

On the lower end of the coin-grading spectrum, coins that have a lot of wear and barely detectable markings are rated as poor (PO). A coin in a little better condition is considered fair (FR). 

Of course, there are many grades that fall somewhere in the middle of the spectrum, such as very fine (VF), very good (VG), and choice very good (VG+). Many of these letter grades are also accompanied by number grades. 

If you are a new coin collector, then having your coins graded can be one of the most enjoyable parts of collecting. While it is exciting to find those rare coins that you suspect are worth a lot of cash, it can be even more exciting to find out what grade they are given by an expert coin-grading service. 

You can check here and on other sites online to learn more. 

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