| > | | | | appearance.However, today coin grading has |
| Numismatics is the study of money, medallions, | | | | evolved and is becoming more definite. They use |
| banknotes, token coins, and stock certificates. It | | | | a combination of letters and numbers that |
| is believed to have been established in the time of | | | | corresponds to the quality of a coin. The coin |
| Julius Caesar who wrote the first book on the | | | | grading system of United States of America is |
| subject. It is a very interesting topic because | | | | the most comprehensive and recommended for |
| every medal or coin signifies a different era, | | | | beginners. An example of USA grading system: |
| culture, economy and/or politics. Numismatists or | | | | MS-60 to MS-70 which means that the coin is |
| the people who study the history and over all | | | | blemish-free and has good color and strike. In |
| appearance of the above mentioned forms of | | | | short it’s perfect! Knowing how to grade a |
| currency are different from coin collectors. Unlike | | | | coin properly is not only a gift, it’s an art. |
| numismatists, coin collectors are only interested in | | | | It requires knowledge, exposure and obviously |
| collecting coins and the prestige that goes along | | | | skills. For coin collectors, ability to grade a coin is a |
| with it; a numismatist may also be a coin collector | | | | must because the value of a coin largely depends |
| and vise versa. Over the years, coin collection has | | | | its grade. Here are some components |
| been very popular. The most common designs | | | | Numismatists use in coin grading1. Luster - it |
| are famous people and animals to depict the era | | | | is a determining factor whether or not a specific |
| when the specific coin was released. Numismatists | | | | coin has been circulated. To have a higher grade, |
| are generally interested in use of money, its origin, | | | | a coin must be technically intact and free from |
| appearance, variety and production. They aim to | | | | any form of imperfection or blemish. 2. |
| explore the role of the different kinds of currency | | | | Surface preservation. Abrasion on the surface of |
| in our history using mint information. Mint refers to | | | | the coin and its location is a huge factor in grading |
| the place or facility where the coins are | | | | a coin but it does not necessarily mean that |
| manufactured. They also grade or authenticate | | | | abrasion can lower the grade of a coin. For |
| coins to determine their market value. T facilitate | | | | example, if a good-looking coin has a severe |
| this, coin grading system facilities were | | | | abrasion on the back that is unnoticeable it will not |
| established.At this time there are three major | | | | count against the coin, but the issue may not be |
| third party facilities that authenticate coins and/or | | | | the same if the abrasion is located on the front or |
| paper money. These are: the PCGS or | | | | focal point. 3. Strike. It refers to the coin |
| Professional Coin grading system located in | | | | designing process wherein the coin is being |
| Newport Beach, CA; the NGC or Numismatic | | | | stamped onto a planchet. In overall grading, strike |
| Guaranty Corporation in Sarasota, Florida; and | | | | does not weigh a great deal.4. Coloration. For |
| Paper Money Grading (PMG).PCGS is a third party | | | | some coin collectors, preservation of original color |
| institution that was established in 1986, which | | | | of the coin has a huge impact on its value |
| grades and authenticates coins primarily for | | | | especially if it is a copper or silver coin. 5. Eye |
| commercial purposes. They are an independent | | | | appeal. Some coins may not be perfect but |
| body providing expert opinion in rating a coin. NGC | | | | collectors may find them attractive, however, it |
| is also a third party institution offering services | | | | still requires expert opinion to conclude that a |
| solely to numismatists. It was established in 1987. | | | | certain coin is excellent in all aspects mentioned.If |
| On the other hand, PMG is solely for | | | | you have no background in grading coins, you |
| authentication of paper money and a smaller | | | | have no business in coin collecting and numismatics |
| department of PCGS. When coin collecting was | | | | without employing help from the experts. Coins |
| not as popular as it is now, there were only 3 | | | | have been playing vital roles, not only in the lives |
| categories into which a coin could fall: 1. Good | | | | of people who love collecting and studying them, |
| — which means that the coin has all of the | | | | but in society as they represent different eras in |
| details intact; 2. Fine — which means that | | | | history. Whether you are selling, buying or |
| the coin has all the details intact and still has a bit | | | | collecting coins, you must acquire the necessary |
| of luster visible; and 3. Uncirculated — which | | | | basic knowledge or information; so that you can |
| means that the coin was never put on the | | | | be assured that it is accomplished properly. |
| market thus maintaining its original | | | | |