In this article, let’s talk a bit about coin grading services and why they’re important.
History of Coin Grading
In 1972, the American Numismatic Association created ANACS, which was the first grading service. It was designed to combat the issues with counterfeit coins and to improve the integrity of collectible coins being sold or traded. The first coin was certified on June 15, 1972. They are still grading coins today.
In the late 1980s, two big players would get their start. A group of coin collectors got together in 1986 and started Professional Coin Grading Service (PCGS). Then in 1987 Numismatic Guaranty Corporation of America (NGC) got their start as well.
Despite there being over a hundred companies (some have come and gone) that offer grading services, PCGS and NGC remain the two leaders in the market. I personally prefer PCGS overall but NGC is also a very good company as well. I find that coins with a PCGS grading seem to pull a little more value than other services.
Benefits of Professional Coin Grading Services
There are many benefits to coin grading services. Let’s take a minute to take a look at a few of major ones.
- You know that the coin is genuine and not a fake.
- You get an unbiased professional opinion of the grade and condition.
- Coins are sealed in protective casing and certified
- These companies must ensure excellent accuracy in order to get or maintain a good reputation in the industry.
For the Investor of Collectible Coins
Coins can vary in price dramatically, based on their condition. Don’t be fooled into paying more by a conman or slick coin dealer. Make sure that you’re familiar with the coin grading scale and can identify them properly on sight. Unless you’re an expert with identifying the condition of coins, you should buy graded coins. If you’re an investor of collectible coins, you should absolutely utilize professional coin grading services.