The quality and condition of a coin greatly influences its value. Coin collecting grades are used to determine a coin’s condition and help establish the desirability of a particular piece. A well-worn but still valuable coin would be graded “good,” a less desirable coin might be rated as “fine.” The ANA provides a comprehensive guide to grading coins.
Whether you want to know what coin you should be looking for in your collection or are considering purchasing coins from a dealer, you’ll need to understand the different coin collecting grades. Grades are based upon a standard definition that most numismatists and coin dealers agree on, but minor details in a coin’s appearance can push it into one of several categories. The size and position of an imperfection can also influence a coin’s grade.
Many collectors choose to have their coins graded by reputable grading companies, which provide professional backing and give their customers peace of mind. Graded coins have a distinct advantage over ungraded coins when it comes to selling on the secondary market.
Some collectors don’t elect to get a coin certified if its resale value doesn’t increase much in a higher mint state grade, and the grading fee may outweigh any profit gained from the higher price. For example, a modern bullion coin like an American Silver Eagle may only gain a few dollars in a Mint State grade, while it will have a higher resale value if it’s been upgraded to CAC.
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