| One of the first things that a beginning coin | | | | types of damage to the surface of a coin. Some |
| collector does is try to determine how much a | | | | coins are more susceptible to damage in certain |
| coin is worth, and he almost immediately | | | | areas. The absence or presence and the extent |
| encounters are the words "grade" and "condition." | | | | of this damage is what a grader is looking for. |
| Just what is a "grade" and what determines what | | | | And the damage considered acceptable in some |
| grade a coin receives is a topic of debate among | | | | coins is almost ruinous in others. Another |
| collectors throughout their collecting lives. Is it an | | | | phenomenon I have noticed is that some |
| art or a science? Can it be learned? Can I learn to | | | | collectors consider damage to the obverse |
| grade my own coins? | | | | (heads) side of the coin more serious than |
| Good questions all, and more easily asked than | | | | damage to the reverse (tails) side of the coin. |
| answered. | | | | 4. Luster. The best way I can describe this is the |
| The condition of a coin is one of the components | | | | "texture" of the coin's surface. Some people refer |
| of how collectable and how valuable a coin is. The | | | | to it as how shiny a coin is. This can be very |
| other main components in determining value are | | | | misleading because a coin may have been cleaned, |
| rarity and demand. Age is often only a minor | | | | which can produce a shiny appearance, but the |
| consideration in determining the coin's value. A | | | | surface of the coin has been marred in the |
| rare new coin may be much more valuable than a | | | | cleaning process (or even have had the original |
| common old coin. A coin in excellent condition is | | | | surface molecules of the coin completely |
| often worth far more than a coin in bad condition. | | | | removed), which results in a lower degree of |
| And a rare coin in bad condition may be worth | | | | luster. In addition, certain surfaces and certain |
| more than a common coin in beautiful condition. | | | | coins have different surface features. A satiny, |
| And naturally, if nobody wants a coin, its value | | | | mirror-like, or frosty surface may be the norm in |
| isn't very high (But demand or desire for a coin | | | | specific coins. The more of the original surface |
| often fluctuates, so the same coin that is worth | | | | which remains, generally speaking, the better a |
| $50 today may be worth $20 or $75 next year!) | | | | coin's luster. |
| William H. Sheldon devised the grading system | | | | 5. Color. Although it sounds simple, this is often a |
| that is commonly used by numismatists today. | | | | difficult concept, and is often quite subjective. |
| Prior to Sheldon's system coins were simply | | | | Certain coins maintain their original color as they |
| described by such terms as "good," or "fine," or | | | | age. Some coins naturally change color, or "tone," |
| "extremely fine." But these terms were | | | | despite the fact that no physical damage has |
| somewhat vague, and there was no real | | | | been done to them. Some collectors pay |
| standardization of what a "fine" coin should look | | | | premiums for "well-toned" silver coins which may |
| like. | | | | acquire all the colors of the rainbow on a single |
| Sheldon devised a numerical scale which ran from | | | | surface of the coin. Some collectors would never |
| 1 to 70. The higher the number, the better a | | | | touch a toned coin, and are very dismayed to |
| coin's condition was in the opinion of the grader. A | | | | find that over time their "perfect" silver dollar has |
| detailed description of the grading system is | | | | been "ruined." |
| beyond the scope of this article, but may be | | | | 6. Eye-Appeal. Again, this can be considered a |
| addressed in the future. | | | | very subjective part of Coin Grading, although |
| So what is usually considered in determining a | | | | many collectors will tell you that this is not the |
| coin's condition? | | | | case. Just as the words imply, this is an overall |
| 1. Whether or not a coin has circulated. An | | | | perception of how attractive a coin is. Coins with |
| uncirculated coin is usually assigned a higher grade | | | | low eye-appeal are not considered as marketable |
| than a circulated coin. Unless a coin is certified as | | | | or collectable, and are therefore considered of |
| uncirculated by a reputable third-party grading | | | | lower value. |
| service the determination of whether a coin is | | | | There are resources in the form of books, |
| considered uncirculated is often the result of | | | | magazines, journals, websites, and even software |
| examining the attributes described below. | | | | which can help in determining the grade of a coin. |
| 2. The Quality of a Coin's Strike. This occurs at | | | | Some of these even include photographs of |
| the time a coin is minted. A coin can be said to be | | | | individual coins in various grades so that it is |
| strongly struck or weakly struck. Among the | | | | possible to compare a coin in your possession to |
| factors determining the quality of a coin's strike is | | | | the photograph to help determine its grade. Once |
| the pressure with which the coin is struck, the | | | | a coin's condition or grade has been determined |
| quality of the planchet used to produce the coin, | | | | there are may resources that are available to help |
| and the quality of the die used to strike the coin. | | | | you determine the value of a coin in the |
| This will determine how crisp the design elements | | | | marketplace. Everything from the Official Red |
| appear on the coin. This can vary greatly from | | | | Book, to monthly magazines, to the website of |
| type to type, from year to year, and even from | | | | the Professional Coin Grading Service can help |
| mint to mint. So comparing the strike quality of a | | | | with that. There are even websites like Coinflation, |
| Lincoln Cent to that of a Winged Liberty | | | | which will help you determine the value of a coin if |
| (Mercury) Dime is not very helpful. But looking for | | | | you decide you just want to melt it down for the |
| variations within a type (among 1919 Lincoln | | | | silver or gold it contains! |
| Cents, for example) is a determining factor in | | | | The very best "resource," however , is |
| value. A particularly well-struck coin may bring a | | | | experience in actually looking at large numbers of |
| premium. A relatively weakly struck coin is not | | | | coins and understanding exactly what it is that |
| considered as desirable. | | | | numismatists are looking for. |
| 3. Current Surface Condition vs. Original Surface | | | | Good luck in your coin collecting! And remember |
| Condition (Often referred to as "Surface | | | | what my Grandfather told me, "The fun of coin |
| Preservation."). What I am referring to here is the | | | | collecting isn't necessarily in the having, but rather |
| presence of nicks, scratches, gouges, and other | | | | in the seeking and the finding. |