How Coins Are Graded, Part 1

October 17, 2016

With collectibles, condition is everything. For instance, a mint condition classic car may bring a fortune, whereas the same one rusted out may end up in a salvage yard. Clearly in this example, one is better than the other, but how does one assess their condition INCREMENTALLY? If one is only slightly better than another, than how is it graded? That is a major problem. With no clear grading guidelines, as soon as you leave one car to look at another, you have to keep your image of the first car in your mind in order to compare it to the next. That means trusting a major issue to your memory. No one’s memory is that good. Therefore, in the absence of a definitive grading scale, grading is very subjective. This accounts for the huge disparities in sales records from one car to another.

All collectibles share this common grading concern - EXCEPT rare coins. With rare coins, grading is compartmentalized into an easy to understand scale. Then the coins are sealed in holders with the grade inside the holder, makingcomparative analysis a breeze. In this new series Golden Art will be explaining grading, from its origins to its implementation. It is a fascinating and informative way to understand the great treasures in the Golden Art collection.
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Greg Halloway has made his living trading gold bullion and rare gold coins for almost 45 years. He is a world-renowned expert on rare coin grading and valuing, and was one of the founders of the world’s first professional coin grading service. His predictions on the prices of gold bullion have been remarkably accurate for dozens of years. He is considered one of the world's top instructors in the field of numismatics.

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