Information About Grading Coins

Grading coins is one way to determine their value.  For example, a coin is evaluated according to several factors, including appearance, whether or not it was circulated, damage and other factors as well.  Your Michigan coin dealer can help to explain the many conditions that apply for grading of coins.

Grading of coins helps to categorize them and rank them according to value.  Before you buy and sell coins, you should be aware of a coin’s grade, which will affect the price that you will pay or receive from a buyer.

Many people involved with coin collecting assume that grading of a coin is more art than actual science.  While it is subjectively based, there are some factors that are fairly objective and this makes a difference in the price.  The process of grading coins is one that can be learned and studied, and therefore, applying it can be somewhat predictable.  It does, however, take some degree of experience to properly grade coins.

The most common scale used by numismatists (coin collectors) is the Sheldon grading scale.  This scale has many grades available.  Even experienced coin graders enjoy that there are so many different factors that having a scale broad enough to encompass all the factors is important.

The imprint or stamp on a coin is known as the strike.  Different designs have different strikes, and may be either weak or strong.  For instance, the type 2 gold dollar has a perfectly aligned strike, which is accomplished using a weak strike.  Strike may not be a major factor when determining grade, except when coins are included in a series based on the value of the strike.

The surface of the coin does have a significant effect on the coin’s value.  Scratches, including location and degree, will affect the overall grade.  Deep scratches that are not highly visible may not result in significant changing of the grade, but a centrally located scratch may change the value.

Coins have variation in texture on their surfaces, depending on the design as well as the type of metal used.  Coins may also have differences in their surface luster depending on where they are originally minted.  Luster is often described using terms such as “frosty,” “satiny,” “proof-like” and “semi-proof-like.”

Determining the grade of a coin should be done only after reviewing the amount of original surface, or skin, that is intact, and the location and significance of any scratches or marks.  The luster may be very different for circulated or uncirculated coins.  Mint condition coins are those that have no wear or marks on their surface.

The color of a coin affects the grade, but this can be a very subjective measurement.  Changes in pigmentation may be attractive to certain collectors and not to others, which can affect the value.

While gold is a fairly inert metal, copper and silver do have a wide range of colors.  Most gold coins in the US have been dipped, or cleaned, and therefore may not have their original color intact.  It can be almost impossible to find truly original gold coins.

Another factor used to grade coins is the overall attraction.  Eye appeal is very subjective, but the combination of qualities used to determine how attractive a coin is can often be fairly consistent.  For instance, a coin may have less than perfect color, but good luster, and therefore have good eye appeal.

Learning about grading coins is important if you are going to become a successful collector.  If you have questions pertaining to the grading of coins, contact your Michigan coin dealer for advice.