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