Do you have rare coins in your possession? Perhaps you inherited the coins from a relative, and you may not actually be a coin collector yourself. If so, you may be wondering about the value of the coin collection. This could be the determining factor for many people in your situation about whether or not they will keep the coins and pass them down future generations or sell them. The following information will aid in helping you to better understand the process of coin grading.
Overview of Coin Grading
Simply put, this is a process that involves assigning values to coins based upon their condition and collector's value. Professional coin graders use a four point system to grade coins. They note interest factor, quality, liquidity factor and rarity.
This part of the coin grading process involves determining the interest level of other collectors. For example, if you have a rare liberty head in your coin collection and there are many collectors seeking the coin, then it would be considered a high-interest coin. There are some cases where very few collectors are seeking a certain coin, and these are referred to as low interest in the coin grading system. Low-interest coins are often sought after by collectors who are trying to complete a collection that has missing pieces.
The quality of your coins is based upon whether or not they were pre-circulated. The actual processing at the time of the mint also plays an important factor in this portion of the grading process. For example, some coins get unique markings on them during the mint process. Coins that have been circulated will likely have wear and some of the unique markings collectors desire in their coin pieces may be missing.
This is a portion of the grading system that involves determining how likely it is that a coin would sell at an auction. The coin grading system assigns a value based upon the current market conditions. This means that the liquidity factor of coins may fluctuate after several years pass. Coins that are readily available may be harder to sell. Those that are harder to find may sell quickly due to not many being sold on the market.
Modern coins are generally not going to be considered rare. The only exception would be if something goes wrong during the mint process. For example, if a group of coins were minted and contained printing errors, it would likely only affect a small group of coins, which would make those few coins rare. The coin grading process does not grade according to age. For example, there are a number of older coins that are plentiful, which means they are old but not rare.
A jewelry store that also deals in coins could be used as a resource for coin grading. Professional coin graders provide certification for coins graded, and this can help you if you decide to sell the coins based upon their collector's value. For more information, check with companies like Penny Pincher Coins & Jewelry.