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What is a Certified Coin or Third-party Grading?

Ian Russell on Wed, Mar 23, 2011 11:04:25 AM

What is a Certified Coin or Third-party Grading?

A certified coin is a coin that has been professionally authenticated, graded, and encapsulated in a protective holder (or slab) by a third-party coin grading service. The certification process ensures the coin's authenticity, condition, and grade, providing confidence to buyers, sellers, and collectors. Certified coins can also be referred to as Slabbed Coins or Graded Coins.

Key Aspects of Certified Coins:

  1. 1. Authentication: Verifies that the coin is genuine and not counterfeit. In addition, GreatCollections’ expert staff has inspected every coin being auctioned by our firm and stand behind that the coin is in the original sealed holder that has not been tampered with in any way.
  2. 2. Grading: Assesses the coin's physical condition and assigns a grade based on an established scale, such as the Sheldon Scale, which ranges from 1 (Poor) to 70 (Perfect Mint State).
  3. 3. Encapsulation: The coin is sealed in a tamper-evident holder, which protects it from damage and environmental factors.
  4. 4. Label Information: The holder typically includes a label with key details:
    • • Grade and condition
    • • Date and mint mark
    • • Additional designations (e.g., "Proof," "Cameo," "Deep Cameo")
    • • Unique certification number (to verify details with the grading company)
  5. 5. Guarantee: Each of the leading Coin Grading Services offers a guarantee for the authenticity of the coin, as well as the grade assigned by the grading service.

Leading Certification Companies for Coins Recognized by GreatCollections:

  • • PCGS (Professional Coin Grading Service): Founded in 1986 and known for strict grading standards.
  • • CAC / CACG (Certified Acceptance Corporation): Known for valuing originality and attractive coins, strict and consistent grading standards.
  • • NGC (Numismatic Guaranty Company): A widely respected grading service.
  • • ANACS (American Numismatic Association Certification Service): The oldest coin grading service.
  • • ICG (Independent Coin Graders): Offers competitive grading services.

It is important to note that each grading service has slightly different grading standards in regard to technical grades, toning, luster and appearance, so a coin graded MS-65 at one service may grade differently at another.

Benefits of Certified Coins:

  • • Trust and Authenticity: Removes uncertainty about the coin's legitimacy.
  • • Value: Graded coins often command higher prices in the marketplace.
  • • Liquidity: Easier to buy, sell, or trade due to standardized grading.
  • • Preservation: Protects coins from damage and deterioration.

Off-brand Grading Services:

There are literally dozens of other third-party grading services that have turned up over the past twenty years. Many of these are not independent and do not offer guarantees on the services they provide. GreatCollections only offers coins graded by the leading grading services listed above.