Are you inquiring about coin collecting? Did you know that coins are graded accordingly to tell the authenticity and quality of coins, If you are not aware of precisely how coin grading works, following are information and facts about how the art started and how and why it is done.

History Of Coin Grading

The hobby of coin collecting began its attraction in the United States in the mid 19th century. Earlier, the coins are graded by the appearance of the coins. The coins were evaluated as Good, Fine and Very Fine.

To better describe the coins, dealers resorted to make use of the phrase „Barely Circulated.“ However, the term is vague and subjective. Many people are confused whether to categorize the coins into this category thus, it was applied inconsistently. Throughout the 20th century, numismatists and coin dealer like Howland Wood tried to find a considerably better and standardized terms of coin grading.

Dr. Sheldon’s Revolutionary Grading System

In 1948, Dr. William H. Sheldon, a known collector of early cents, pioneered the system of coin grading that changed the concept of coin collecting. He started the accurate method of assessing the coins using the scale of 1-70. The grading system uses a 70 point system, which also has several sub divisions based on the coin. Obviously, coins that have been totally damaged are categorized under Poor-1. On the other hand, a non-plus-ultra MS-70 grade was kept for coins that almost have impossibly high standards of excellence and luster.

Other categories assigned to coins are (F-2), Good (G-4), Very Good (VG-8), Fine (F-12), Very Fine (VF-20), Extremely Fine (XF-40), About Uncirculated (AU-50), Average Mint-State (MS-60), Choice Mint-State (MS-63) and Gem Mint-State (MS-65). Dr. William H Sheldon’s grade descriptions remain to be useful today and are also useful as the general guide for coin grading.

Advantages Of Coin Grading

Knowing the grade of the coin is exceedingly important. Although, you will need to understand that it has nothing to do with all the rarity and antiquity of the given coin. Grading is in fact an art. It’s not a science which requires standard or precise demarcation. It only serves as a guideline. Grading coins have many perks. Some of its known advantages include.

1. The coins authenticity can be guaranteed.

2. The coins are independently assessed.

3. The coin is protected because it is placed in an encapsulated holder. Graded coins usually come in cased tamper-proof clear plastic slabs.

4. If sold, the authenticity and grade of the coin is retained.

5. Each graded coin could have its own reference number.

How Coin Grading Is conducted

Grading is often performed by two individuals. These individuals may judge the coins after assessing each coin carefully. As of today, there is no standard accepted group of grades, but most of the time Dr. Sheldon’s grading system is used and that is comprehensible and very basic.

Normally, the coins are inspected by the naked eye. Later the coins are examined carefully with a special scientific device just like a microscope or magnifying glass.

People who are assigned to inspect and assess the coins look at the following factors:

– etching of the word around the coin

– luster

– eye appeal

– mint mark and date

– any specific wear that can affect the grade of the coins

Today, more and more people are investing in coins because of the historical and monetary values. Previously, people included in the royal families are the only ones who can afford such hobby. In the 19th century, as the hobby grows in number and in character, many began to gauge the value of the coins using graded systems. They grade coins in accordance to subjective viewpoint. However, many things have changed ever since that day and this time people of all classes and parts of society have the ability to collect coins. The art of coin grading remain evident and it will go on to be seen until a more scientific analysis is discovered to grade coins objectively.

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