| Numismatics is the study of money, medallions, | | | | becoming more definite. They use a combination |
| banknotes, token coins, and stock certificates. It | | | | of letters and numbers that corresponds to the |
| is believed to have been established in the time of | | | | quality of a coin. The coin grading system of |
| Julius Caesar who wrote the first book on the | | | | United States of America is the most |
| subject. It is a very interesting topic because | | | | comprehensive and recommended for beginners. |
| every medal or coin signifies a different era, | | | | An example of USA grading system: MS-60 to |
| culture, economy and/or politics. | | | | MS-70 which means that the coin is blemish-free |
| Numismatists or the people who study the history | | | | and has good color and strike. In short it's perfect! |
| and over all appearance of the above mentioned | | | | Knowing how to grade a coin properly is not only |
| forms of currency are different from coin | | | | a gift, it's an art. It requires knowledge, exposure |
| collectors. Unlike numismatists, coin collectors are | | | | and obviously skills. For coin collectors, ability to |
| only interested in collecting coins and the prestige | | | | grade a coin is a must because the value of a |
| that goes along with it; a numismatist may also | | | | coin largely depends its grade. |
| be a coin collector and vise versa. | | | | Here are some components Numismatists use in |
| Over the years, coin collection has been very | | | | coin grading |
| popular. The most common designs are famous | | | | 1. Luster - it is a determining factor whether or |
| people and animals to depict the era when the | | | | not a specific coin has been circulated. To have a |
| specific coin was released. | | | | higher grade, a coin must be technically intact and |
| Numismatists are generally interested in use of | | | | free from any form of imperfection or blemish. |
| money, its origin, appearance, variety and | | | | 2. Surface preservation. Abrasion on the surface |
| production. They aim to explore the role of the | | | | of the coin and its location is a huge factor in |
| different kinds of currency in our history using | | | | grading a coin but it does not necessarily mean |
| mint information. Mint refers to the place or | | | | that abrasion can lower the grade of a coin. For |
| facility where the coins are manufactured. They | | | | example, if a good-looking coin has a severe |
| also grade or authenticate coins to determine | | | | abrasion on the back that is unnoticeable it will not |
| their market value. T facilitate this, coin grading | | | | count against the coin, but the issue may not be |
| system facilities were established. | | | | the same if the abrasion is located on the front or |
| At this time there are three major third party | | | | focal point. |
| facilities that authenticate coins and/or paper | | | | 3. Strike. It refers to the coin designing process |
| money. These are: the PCGS or Professional Coin | | | | wherein the coin is being stamped onto a planchet. |
| grading system located in Newport Beach, CA; | | | | In overall grading, strike does not weigh a great |
| the NGC or Numismatic Guaranty Corporation in | | | | deal. |
| Sarasota, Florida; and Paper Money Grading (PMG). | | | | 4. Coloration. For some coin collectors, |
| PCGS is a third party institution that was | | | | preservation of original color of the coin has a |
| established in 1986, which grades and | | | | huge impact on its value especially if it is a copper |
| authenticates coins primarily for commercial | | | | or silver coin. |
| purposes. They are an independent body providing | | | | 5. Eye appeal. Some coins may not be perfect |
| expert opinion in rating a coin. NGC is also a third | | | | but collectors may find them attractive, however, |
| party institution offering services solely to | | | | it still requires expert opinion to conclude that a |
| numismatists. It was established in 1987. On the | | | | certain coin is excellent in all aspects mentioned. |
| other hand, PMG is solely for authentication of | | | | If you have no background in grading coins, you |
| paper money and a smaller department of PCGS. | | | | have no business in coin collecting and numismatics |
| When coin collecting was not as popular as it is | | | | without employing help from the experts. Coins |
| now, there were only 3 categories into which a | | | | have been playing vital roles, not only in the lives |
| coin could fall: 1. Good - which means that the coin | | | | of people who love collecting and studying them, |
| has all of the details intact; 2. Fine - which means | | | | but in society as they represent different eras in |
| that the coin has all the details intact and still has a | | | | history. Whether you are selling, buying or |
| bit of luster visible; and 3. Uncirculated - which | | | | collecting coins, you must acquire the necessary |
| means that the coin was never put on the | | | | basic knowledge or information; so that you can |
| market thus maintaining its original appearance. | | | | be assured that it is accomplished properly. |
| However, today coin grading has evolved and is | | | | |