HOW ARE U.S. GOLD & SILVER RARE COINS CERTIFIED?
How are rare United States gold and silver coins authenticated, graded, and certified?
The answer lies with the three leading independent Third-Party Grading Services (TPGS) that the U.S. rare coin industry relies on to verify authenticity, assign grades, certify, and document the population of these coins.
The Certified Acceptance Corporation (CAC), Professional Coin Grading Service (PCGS), and Numismatic Guaranty Company (NGC) are impartial third-party grading services that ensure 100% authentication and certification of the condition and quality of all U.S. gold and silver rare coins they evaluate.
Experts from CAC, PCGS, and NGC examine each coin without preconceived ideas about its market value.
The identity of the individual or company submitting a coin for authentication, certification, and grading remains confidential, and every coin undergoes a comprehensive examination.
When graders disagree on a coin's authenticity, condition, quality, or grade, a "finalizer" is brought in to determine its final classification.
At Minuteman Rare Coin Company, we exclusively acquire, recommend, and provide United States gold and silver rare coins that are authenticated, certified, and fully guaranteed by one of the three leading grading services for our clients' collections.
We invite you to explore our web page dedicated to collecting and investing in rare United States gold and silver coins, which is filled with valuable insights, tips, and some of our secrets to success.
You will gain valuable insights into how to successfully collect and invest in genuine, certified American rarities.
This knowledge will enable you to build the most historically significant, valuable, and rewarding collection of rare U.S. gold and silver coins—one that you will cherish for life and that will serve as a true testament to your legacy, treasured by future generations!
WHAT DETERMINES A COINS GRADE, CONDITION & VALUE?
The four key factors that determine a rare coin's grade, condition, and value are:
1.
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Surface Preservation
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Strike
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Luster
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Eye Appeal
Once a coin meets these criteria and its authenticity and condition are verified, it receives a numerical grade ranging from 1 to 70 according to the Sheldon rare coin grading scale.
The coin's value is then assessed based on this numerical grade, which serves as a starting point; various factors like eye appeal, toning, and a CAC-approved green sticker can enhance its value.
Each coin is placed in a plastic holder and sonically sealed, with inside labels ensuring an airtight closure.
These labels indicate the coin's minting year, denomination, mint of origin, numerical grade (e.g., MS-65), and assigned serial number.
This process is called "slabbing," which refers to any holder used by a third-party grading service after they have professionally authenticated, graded, and certified a coin.
Once a coin receives a numerical grade, it is recorded in a population or census report. These reports are essential resources for collectors, investors, and the rare coin industry, providing insights into the quantities of coins in specific grades and conditions.
Before 1986, when Third Party Grading Services (TPGS) like PCGS were established, collectors and investors without trained eye expertise struggled to accurately assess a coin's grade, condition, and value, which often varied significantly among sellers.
Third-party grading services like PCGS and NGC addressed many challenges that untrained collectors and investors faced before 1986.
For example, prior to 1986, if you couldn't distinguish between an Uncirculated Mint State-63 and an Uncirculated Mint State-65, you relied solely on the seller to determine the coin's grade, condition, and value.
(Even a slight one-point difference in a coin's grade could result in hundreds or thousands of dollars in value.)
With so much depending on sellers' opinions, it was difficult for novice investors and collectors to justify the purchase of coins with substantial value.
At Minuteman Rare Coin, we ensure that our clients possess 100% genuine, authentic, and certified U.S. rare gold and silver coins.
CERTIFIED ACCEPTANCE CORPORATION (CAC)
CAC was founded in 2007 to evaluate coins that were authenticated, graded, certified, and encapsulated by PCGS and NGC. Initially, it did not provide grading and encapsulation services.
Today, it offers grading services. However, in the past, when it evaluated a certified and encapsulated coin from either PCGS or NGC and determined it to be in the top 10 to 15% of its grade, it awarded a green approval sticker, often increasing its value by up to 30%.
Coins considered undergraded received a gold sticker, which can boost their value by as much as 90%.
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At Minuteman Rare Coin, we acquire PCGS and NGC (CAC)-green stickered coins. We also highly recommend (CACG) graded coins as they become available.
THE SHELDON RARE COIN GRADING SCALE
In 1949, Dr. William Sheldon pioneered consistent definitions for coin grading. He created a grading scale that ranges from 1 to 70 and classified coins based on their condition.
Essentially, a coin's value increases according to its preservation level. Uncirculated Mint State coins at the higher end of the scale receive a grade between 60 and 70.
MS Mint State 60-70
AU About Uncirculated 50-59
XF Extremely Fine 40-49
VF Very Fine 20-39
F Fine 12-19
VG Very Good 8-11
G Good 4-7
AG About Good 3
F Fair 2
P Poor 1
Mint State Terminology
Uncirculated MS-60-62
Select Uncirculated MS-63
Choice Uncirculated MS-64
Gem Uncirculated MS-65
Superb Gem Unc. MS-66+
Coins graded above 60 in Uncirculated Mint State condition typically hold a significantly higher value than those graded below 60, which is evident in their pricing.
They often demonstrate the most substantial potential for price appreciation and consistent growth in value over time.
However, rare gold and silver coins graded below 60 can be exceptions to this rule when few coins are known to exist in Uncirculated State condition due to factors such as low survival rates, low mintages, and mass melting.
A prime example is the gold 1909-O (New Orleans) $5 Indian Head Half Eagle, of which fewer than 100 examples have been graded above 60 in Uncirculated Mint State.
Just over 100 1909-O coins are authenticated and certified by PCGS in AU-55 (About Uncirculated) condition. If you find one, it is valued between $14,000 and $17,500.
Uncirculated Mint State 1909-O coins graded between 60 and 66 are priced between $32,000 and $750,000.
WHAT ARE CIRCULATED COINS?
As coins change hands among individuals and businesses, they become worn from frequent handling, earning the designation "circulated." This wear diminishes the coin's luster and detail, which cannot be restored.
Generally, circulated coins are less valuable and less sought after than uncirculated Mint State coins, with certain exceptions.
For example, circulated coins like the 1889-CC (Carson City) Morgan Silver Dollar command premium prices due to their limited availability and the rarity of documented uncirculated Mint State examples in population and census reports.
WHAT ARE TONED COINS?
Over time, coins—especially silver coins like the Morgan Silver Dollar—can undergo a chemical reaction known as oxidation. This reaction affects the coin's surface metal and leads to toning.
This natural process can create stunning rainbow-colored silver dollars, showcasing hues from blue to magenta, red to orange, olive green, and gold.
However, toning may also cause corrosion, which can damage the coin's surface irreversibly and produce undesirable shades of black and brown.
Discerning collectors and savvy investors look for beautiful, naturally toned coins. Coins with more vibrant colors and a wider spectrum of hues can significantly increase in value.
Rare coins that seem ordinary and are easily found yet display remarkable toning can reach exceptional values.