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How Does Grading Work?

Updated: Nov 29


Our specialisation in graded coins reflects our unwavering commitment to providing our valued clients with the highest level of confidence and trust in their numismatic investments. Graded coins undergo rigorous evaluation by esteemed grading authorities, such as NGC and PCGS, ensuring authenticity and offering standardized assessments of their condition. This meticulous grading process eliminates concerns about counterfeits and provides a clear, objective benchmark for quality. By focusing on graded coins, we empower collectors and investors with transparency, preservation of value, and access to coins that meet the highest industry standards. Our dedication to graded coins reflects our mission to deliver a numismatic experience built on expertise, authenticity, and the utmost integrity.

Investors often prefer to buy graded coins for their investments due to several compelling reasons. Graded coins provide a level of confidence and assurance that is vital in the world of numismatics. The standardized grading process, conducted by reputable organizations like NGC and PCGS, ensures that each coin's quality and authenticity are thoroughly verified, mitigating the risk of acquiring counterfeit or subpar specimens. Additionally, the encapsulation of graded coins in tamper-evident holders safeguards their condition over time, preserving their value. Investors appreciate the transparency and market consistency that graded coins offer, enabling them to make informed decisions and easily assess a coin's worth. Overall, the combination of authentication, quality assurance, and market transparency makes graded coins an attractive choice for those looking to invest in tangible assets with confidence.

Below we have included an extensive guide on how the grading system works.


The Art of Coin Grading: Your Comprehensive Guide

The two primary governing bodies or organizations responsible for coin grading in the numismatic industry are:

Numismatic Guaranty Corporation (NGC): NGC is one of the most prominent and respected coin grading services in the world. It was founded in 1987 and is known for its rigorous grading standards, authentication services, and encapsulation of coins in protective holders. NGC has gained a reputation for its accuracy and consistency in grading.

 

Professional Coin Grading Service (PCGS): PCGS is another highly regarded coin grading organization founded in 1985. PCGS offers similar services to NGC, including authentication, grading, and encapsulation of coins. It has played a significant role in standardizing coin grading practices and is widely trusted by collectors, investors, and dealers.

These two organizations have established industry standards for coin grading and authentication. They employ teams of experienced numismatists who assess the condition, authenticity, and quality of coins according to their established grading scales. Coins graded by NGC or PCGS are widely accepted and trusted in the numismatic market, making them valuable resources for collectors and investors.

1. Authentication:

  • The first step in coin grading is authentication. Experts at NGC and PCGS carefully examine the coin to verify its authenticity, ensuring it is not a counterfeit or altered in any way. Authentication is a crucial process to maintain the integrity of the grading service.

2. Grading Process:

  • After authentication, the coin is assessed for its overall condition, which includes factors like wear, luster, surface quality, and any imperfections. Graders at NGC and PCGS use a numerical scale to assign a grade to the coin.

3. Grading Scale:

  • Both NGC and PCGS use a 70-point grading scale, with higher numbers representing coins in better condition. The scale is as follows:


    • 1 to 20: Coins in Poor to About Good condition, showing significant wear and damage.

    • 21 to 40: Coins in Good to Very Fine condition, with moderate wear.

    • 41 to 58: Coins in Extremely Fine to Mint State (Uncirculated) condition, showing minimal wear and varying levels of lustre.

    • 59 to 70: Coins in Mint State (Uncirculated) condition, with no wear and excellent lustre. A coin graded 70 is considered perfect and flawless.

4. Encapsulation:

  • Once a coin has been graded, it is encapsulated in a tamper-evident, protective holder along with a label indicating its grade and other relevant information. This holder helps preserve the coin's condition and authenticity.

5. Final Verification:

  • NGC and PCGS conduct a final verification of the coin's grade and authenticity before sealing it in the holder. This ensures consistency and accuracy in their grading standards.

6. Certification and Documentation:

  • The graded coin is then accompanied by a certificate of authenticity and a detailed description of its grade and attributes. Collectors and investors can use this documentation for buying, selling, or insuring their coins.

In summary, NGC and PCGS follow a meticulous process of authentication, grading, and encapsulation to provide a standardized and trusted assessment of a coin's condition. Their 70-point grading scale allows collectors and investors to precisely gauge the quality and value of their coins, making these services essential for the numismatic community.


The NGC (Numismatic Guaranty Corporation) grades proof coins using a specialized grading scale that takes into account the unique characteristics and features of these coins, which are struck with extra care to showcase their pristine condition and mirror-like surfaces. Here's how NGC grades proof coins:

  1. PF (Proof) 60-69: This range covers typical Proof coins, where 60 represents the lowest grade and 69 the highest. These coins exhibit a range of minor imperfections, including hairlines, minor contact marks, or other small flaws that do not significantly detract from their overall appearance. The higher the number, the fewer and less severe the imperfections.

  2. PF (Proof) 70: A Proof coin graded as PF 70 is considered perfect. These coins have flawless surfaces, impeccable strikes, and no visible imperfections, even when examined under magnification. PF 70 coins are exceptionally rare and highly sought after by collectors and investors.

  3. DCAM (Deep Cameo): In addition to the numerical grade, NGC may designate a Proof coin as "DCAM" if it exhibits deep cameo contrast between the frosted design elements and the mirrored fields. This designation indicates that the design elements are sharply frosted and contrast dramatically with the deeply mirrored background, enhancing the coin's visual appeal.

It's important to note that Proof coins are held to a higher standard than circulation strikes because they are produced with the intention of showcasing the coin's design and craftsmanship in the most pristine condition possible. NGC's grading system for Proof coins provides collectors with a reliable and standardized way to assess the quality of these special coins, allowing for a clear understanding of their condition and value in the numismatic market.


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