Grading Gold Coins - NGC & PCGS Certified
Grading gold coins is a rather exact procedure that involves potential years of study and understanding of coin collecting and circulation to become good at. Coins are graded based on many things, including their age, the type of coin that they are, and the condition that they are in. There are two services responsible for the grading of coins around the world, known as the PCGS and the NGC. PCGS stands for Professional Coin Grading Service, while NGC stands for Numismatic Guaranty Corporation, which is one of the largest third-party coin grading services in the world.
In the 1940s, the grading process became much more scientific with the creation of the numerical grading scale by Dr. William Sheldon. This scale ranged from 1-70 and is now used by many numismatists, even though many newcomers tend to feel that such a system allows for too many grades of coins. However, there can be a wide range in the quality of each different grade, which is known and appreciated by more experienced collectors. There are five elements to coin grading which are important.
The strike of a coin, or how it is stamped onto the blank, is the first element that is graded. A coin will either have a weak or a strong strike, and the presence of this varies in relation to the value of the coin. Surface preservation is another factor, and includes the marks and placement of those marks on a coin. There are no set formulas in this case, but there is a normal standard of what should be expected and what isn’t acceptable.
The luster of the coin will also affect the grade, but only in relation to the intended luster when the coin was minted. Color is the most subjective factor in coin grading, but essential to understanding the quality and value of a particular coin. Once these four factors are considered, the final element comes into play. This part, known as the "eye appeal" of a coin, allows graders to rate a coin overall based on the aforementioned factors, giving it either a good or bad eye appeal.
Much of this information is subjective, or will seem that way at first. However, experienced collectors, dealers, and grading services will tell you that grading coins is much more scientific than people realize, and those who partake in the process are required to have a very well trained eye and understanding of the grading system.