Coin collection is a hobby that has not lost its sheen in all these years. People are still as enthusiastic about collecting coins, as they were many years back. Since many coins are hard to find today, buying and selling of rare coins is becoming a rage. But, when you have to buy or sell coins, it is important that you know the value of your coins. This is where coin grading has a vital role to play.
Before getting involved in any coin exchange, one should first understand what does it exactly mean to grade a coin and the importance of it. As the name suggests, it is the process to determine the grade of the coin i.e it gives you an idea about the condition of the coin. While grading coins, following characteristics of the coin is considered-
- Quality- Coins differ in their quality with respect to polish, scratches and various other forms of wears. It is necessary to assign different grades to coins having different qualities.
- Interest factor
- Liquidity factor
Earlier, when the coin collectors’ circle was comparatively small, there were just three definitions that were required to determine grade- good, fine and uncirculated. But later, as the market expanded, newer systems were evolved to determine finer and finer grades. It was realised in 1985 by some rare coin experts that there might be a great difference in the market price of two coins which appear quite similar to the untrained eyes. This problem needed to be addressed to create a fair market for numismatists so that they can make a valuable addition to their collection.
Importance of coin grading:
Here are a few reasons why a coin collector should consider grading coins-
- It helps you to determine which coin fits your coin collection.
- It ensures that you make a good investment and also makes your collection unique.
- You get certification from a professional institution when you get your coin graded.
Those who haven’t yet thought of grading coins should now definitely do it as this will add value to your valuable collection.