| Numismatics involves studying banknotes, token | | | | rating. NGC, another third party institution |
| coins, stock certificates, medallion and money. It is | | | | established in the year 1987, offers services to |
| believed that numismatics was established during | | | | numismatists in particular. The PMG, unlike the |
| the reign of Julius Caesar who also wrote the first | | | | above mentioned bodies, only authenticates paper |
| book on this subject. This topic is a very | | | | money and is a department of the PCGS. |
| interesting one as every coin or medal represents | | | | There are a few components used by |
| a particular culture, era, politics and economy. | | | | numismatists in grading coins: |
| Numismatists are the people who study the over | | | | 1. Luster- this determines if a particular coin has |
| all appearance and history of the currency | | | | been in circulation. If a coin is of higher grade, it |
| mentioned above. They should not be confused | | | | should be free from all blemishes and |
| with coin collectors. Coin collectors, unlike | | | | imperfections and be technically intact. |
| numismatists, only interest themselves in the | | | | 2. Surface Preservation. The location and type of |
| collection of coins and the related prestige. A | | | | abrasion on a coin’s surface is an important |
| numismatist, however, can also be a collector or | | | | factor that determines the coin’s grade. This |
| coins. | | | | does not mean that an abrasion lowers the |
| Through the years, the popularity of coin | | | | coin’s grade. For instance, if a coin is good |
| collecting has increased immensely. Animals and | | | | looking but has an unnoticeable abrasion at the |
| famous people who depict a certain era are the | | | | back, it will not affect the value of the coin. But |
| most popular. | | | | there is a difference in case the abrasion is |
| Generally, numismatists are interested in the | | | | located at the focal point or in the front. |
| origins, appearance, production and variety of | | | | 3. Strike. Strike is the process of designing a coin |
| money. Their aim is to explore the different | | | | where the coin is stamped on a planchet. The |
| types of currency and their role in history with | | | | strike does not weigh much in the grading. |
| the help of mint information. The facility of place | | | | 4. Coloration. A few coin collectors feel that the |
| where a particular coin was manufactured is called | | | | color of a coin impacts its value to a large extent |
| its mint. Numismatists are also involved in the | | | | especially when the coin is made of silver or |
| grading or authentication of coins in order to | | | | copper. |
| discern their market value. in order to facilitate | | | | 5. Aesthetic appeal. There are a few coins that |
| this, many coin grading systems were established. | | | | are anything but perfect but a collector might find |
| At present, there are three third party facilities | | | | such a coin valuable or attractive. However, even |
| involved in the authentication of paper money and | | | | such coins need to examined before their true |
| coins. They are: the NGC or the Numismatic | | | | value is determined. |
| Guaranty corporation, Sarasota, Florida; PMG or | | | | If you have absolutely no experience in the |
| Paper Money Grading; and the PCGS or | | | | grading of coins, it is best you seek the help of |
| Professional Coins Grading System, Newport | | | | experts. Coins are important, not only to people |
| Beach, CA. | | | | who love the study and collection of coins but |
| PCGS was established in the year 1986 and is a | | | | also to society as they are representatives of |
| third party organization that authenticates and | | | | different historic eras. One should always have |
| grades coins for commercial purposes. This | | | | the basic knowledge required to collect coins. |
| independent body provides expert opinion on coin | | | | |