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COIN COLLECTING [ARTICLE #45]
Why is a Coin Grading Service Important?
|Coin collecting has been a very
popular hobby to many people of all ages. The marketing of coins has
expanded widely and because of this wide the market prices of coins has
Before, the coin market was limited to a small number of collectors and dealers. At that time coins were priced in simpler terms. Since the market has expanded, dealers have been very inconsistent with the prices they set for the coins so that became the time when the need for a standard scale arose. That is where the coin grading service entered the scene.
Coin grading services are able to provide services that determine the standard practices so important in marketing. Any collector who sees the wide market of coins will see the importance of a grading service. There are unscrupulous dealers that over grade the coins that they sell and collectors need to be aware of this.
Coin grading services have standard scales for every coin available on the market. One benefit grading provides, is that coins will be assessed fairly and accurately. Antique coins and rare ones will be scaled depending on their origin, quality and the purpose for which they were released.
A coin collector may need to use a coin grading service when buying a coin so that he is able to check the authenticity of the coin and if the coin is priced fairly. Sellers, on the other hand, use the grading service to check if they can generate income based on the price they have set on the specific coin. This practice will also ensure that the prices dealers set are not too high and are close to the actual value of the coin.
Many collectors are victims of fraud - especially when buying rare coins. A grading service will ensure that the coin is not a counterfeit one and this will prevent fraud in every negotiation.
Coins values often change through time. The grading service will ensure that the coin will have the updated price set for it; or determine if a coin’s value has depreciated, depending on factors like deterioration of the appearance of the coin.
Some of the credible grading services are the PCGS, PCI, Anacs and the NGC. These services have very good records and are known to provide valuable and helpful services to consumers with consistent and accurate results in grading.
They seldom (or never) have been reported to be over grading. They are also known for their expertise in checking the authenticity of a coin with accuracy. Other important factors are also considered by these services such as detecting any marks and problems with the coins and adjustments in the dates and mintmarks. Coin grading services are also able to detect if there was toning, cleaning and repair that were made on the coins that were graded.
Coin grading services can also help if there is fraud and/or illegal activities being practiced by dealers. They have hotline numbers available so that consumers can call and report any illegal act. This helps to ensure that consumers are safe.
Grading services can also guarantee the authenticity of the coin. Services like the ones offered by PCGS, grading is done by at least three experts in accordance with the standards set in their policies. If a consumer thinks that his coin over-graded, he can return the coin and have it re-graded to ensure that all information given was fair and accurate.
Coin grading services provide guarantees of their grades, and unlike dealers, they do not provide this benefit. Dealers are only able to provide opinions on grades, they are unable to guarantee them.
As coin collectors, people need to ensure that they receive a fair for coins – whether buying or selling. Grading services are there to help and assist these collectors and the collectors need to be aware of the benefits of grading services so that they do not rely on opinions given by dealers.
When choosing a grading service, you must always check the credibility of that service. This may be done by checking the Internet to verify information regarding a certain coin grading service. Awareness is a very important factor needed to ensure safety among coin collectors.
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