Different personalities tend to collect coins for different reasons. Some like holding a little piece of history while others are attracted to their beauty. Many view coins as an investment and only have an interest in collecting gold and silver graded numismatic coins.

Gold and silver coins can be worth much more than just the value of the metals they contain. The value depends on many factors. The rarity of the particular coin is one, and generally the rarer a coin is, the greater its value will be. Age is far less important to value of a coin than its scarcity. For example, there are many thousand coins on the market from ancient Rome, and they sell for much less than some coins minted in the twentieth century.

Whether or not there is a high demand for a particular coin is a factor in assessing its value. While it is true that rarer coins usually have more value, the value is actually less if there are not many people interested in owning them. As a general rule, collectors tend to collect coins from their own country in which they can find some relevance. A coin from a specific area may be older and rarer, but may carry less value than a newer, less scarce coin that appeals to a wider group.

Quality is one factor in setting the value of a coin. This is not its grade, but often only an expert can assess its quality accurately. Quality refers to how appealing the coin looks. It encompasses such features as how sharp the strike is, what the luster of the coin is, and whether or not the tones are even. Coins can have the same grade but different levels of quality, even though the differences may be minute. An experienced and knowledgeable numismatist can spot the differences, but the untrained eye may judge the two coins identical.

The grade assigned to a coin is the single most important aspect in determining value. Grade depends on the condition, and there is a standard scale that is used. Coins are graded in categories such as Good, Fine, or Mint State. As an example, an AG-3 is an About Good, while the highest rating, MS-70, is Perfect Mint State. Numerous designations fall in between, such as a VF-20, which is Very Fine. More valuable coins will have higher grades.

Whether or not a coin has been in circulation will affect its grade. A circulated coin will inevitably receive marks or wear from repeated handling. Circulated coins must be evaluated on how much residual luster remains, the sharpness of the design, and other factors. Cleaning, for example, can reduce value. Because these factors are somewhat subjective, there can be differences in what grade is assigned when the coin is graded by more than one expert.

Even uncirculated coins will have some tiny marks from contact with other coins while being counted, rolled, or bagged. Therefore, there are eleven separate grades for uncirculated or mint state coins. These range from an MS-60, which is Typical Mint State, to an MS-70, which is Perfect Mint State. Only uncirculated coins are graded at 60 or above, which circulated coins will always be graded below 60.

Coins should be graded by someone who has knowledge and experience. A mistake of even one grading level can have a serious impact to the value assigned. If you are a novice at collecting and cannot verify the experience of the person performing the grading, you might want to buy certified coins. These have been examined for authenticity, classification, and attribution as well as assigning a grade. The certification is usually sealed in plastic with the coin.

Patronizing a reputable dealer is the best way to guard against being overcharged when collecting gold and silver numismatic coins. Unfortunately, just as happened in any industry where money can be made, there are some unscrupulous players in the market. Some deliberately falsify the grade of a coin, but many others simply do not have the knowledge required to make an accurate assessment. Educate yourself on what a reasonable price would be for a specific coin. If the price seems too good, there may be a problem.

Learn more about Collecting Graded Gold and Silver Coins. Stop by Gary Price’s site and find out more on Why Collect Graded Coins and what it can do for you.