Coin Grades Explained: The Importance of Grading Standards in Numismatics

It is important to understand that in the numismatics space, the status of the coin is considered to be critical, with many of the coins being priced based on their condition. It is imperative to know how coins are graded especially if you are a first time collector or even if you are an experienced one.

Authentication means evaluating the exterior quality of the coins, this is one major factor that may affect the price of the coin. One of the benefits that competitive grading brings is that this way, there is a set of standard grading rules which have to be followed; thus, no collector would be able to understate the value of a particular coin and overstate the value of another, since the grading systems are standard.

In this article, we will try to explain why grading standards of coins mean so much in the sphere of numismatics and how it impacts the value of coins.

What Is Coin Grading?

Coin grading means the process of assessing the present state of the given coin or its condition. Getting coin grades is one of the most important factors in numismatics because the condition of a coin determines its price. Grading is carried out by professionals who consider many aspects such as the luster of the coin, surface texture, the quality of the strike, and coin appeal.

As for the grading system, the most famous one is called Sheldon Scale, which numbers from 1 through 70. This scale, which was created in 1949 by Dr. William Sheldon, can be used by collectors in order to determine that a specific value of a coin corresponds to a certain state. A coin which is higher on the scale will be in better condition than the lower graded coin. The best possible grade of a coin is 70 and at this grade, no marks that are visible to the naked eye or even under magnification are present.

What Role Do Grading Standards Play?

Coin grades are an important facet of the market that enhances uniformity, credibility, and openness. They allow both the buyer and the seller to have a clear look at the actual status of the coin and its actual value. If there were no standard grades in the numismatic market, it would be extremely difficult to determine the actual condition of the desired piece and its price.

For instance, two coins of the same year and mint may have a completely different value depending on the condition they are in. Relative to other similar coins, a minted product with the least wear possible and detailed features is said to belong to a higher grade and consequently is sold at a much higher price than a corroded or damaged one.

Key Factors in Coin Grading

To better understand coin grades, it’s helpful to break down some of the key factors professionals consider:

a. Luster

If you try flashing a coin in front of the sun or a good light source, then you would see the direction the light bounces off the coin, depending on its condition. Coins that are in their raw form with mint luster are assigned high grades.

b. Strike Quality

This refers to how deep the details or design on the surface of the coin was impressed during minting. Clear and prominent lines demonstrate the best quality of a struck coin.

Scroll to Top