US Certified Coins – What’s The Big Deal?

Coin collectors and dealers have benefited from a more orderly approach to the hobby, and the business, of coins.

If you are new to the hobby, or even if you aren’t, some background on certified coins won’t hurt.

First, what is a certified coin? (And who’s doing the certifying?)

A certified coin is one that is deemed authentic, and assigned a grade, after examination by a panel of experienced coin graders employed by an organization accepted by the coin market.

Traditionally, a collectible coin was authenticated and graded by the seller. Since the late 1980’s, certification companies have provided a disinterested opinion that adds credibility to the value of a coin in the marketplace.

The added credibility is well founded. The major coin certification companies, for example the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC), employ expert numismatists to evaluate coins submitted to their services.

Coins are sonically sealed within heavy, tamper-proof plastic holders, known as “slabs” in the trade. Each slab bears identification, grading and tracking information.

How has this affected coin collecting?

The impact of US certified coins on the rare coin industry has been immense. Many coins now trade on a “sight unseen” basis across electronic trading networks that span the globe.

Not surprisingly, the more popular world coins are being certified as well.

So, a collector doesn’t have to learn to grade a coin anymore?

Not so fast.

Coin grading is still subjective. It’s still a matter of opinion, even with detailed grading standards and expert panels. Opinions, and even standards, can vary, especially over time.

You as a collector still need to understand the grade assigned to your coin. But with the advent of the grading services, you can take on that task (a pleasurable one for collectors) with greater confidence.






Coin image component of simulated generic slab composition courtesy of Goldberg Coins & Collectibles.