Generally speaking, there are two variables that go into calculating the value of a coin. One of these is rarity. A particular date and mintmark of a coin that is known by only four or five examples is extremely rare and therefore quite valuable. For example, there are only 5 known 1913 Liberty V nickels. These sell for $4,000,000 or more! Any of these coins will be worth a great deal because of their rarity, and if one was found but in a less-than-ideal condition, would still be worth big bucks. However, the other variable is condition. For example, there were 278,000,000 of the Philadelphia mint Texas quarters produced. These will never be rare. To have much value above face value, one of these coins must exhibit a near perfect strike, beautiful mint luster, and no contact marks. This would result in a very high grade, making it a “condition rarity.” Even then, that coin might be worth only a few hundred dollars, if you found just the right buyer.
Condition refers to how a coin appears to the eye. Generally, new coins have great eye appeal, being undamaged and having a lustrous finish. To find a coin from a hundred years ago that looks like it just came from the mint is exciting. Part of that reason is because of its condition; the newer an older coin looks, the more it is worth. Finding a rare coin in a looks-brand-new shape is a thrill to any coin collector. However, NEVER clean your collectible coins. Natural surfaces are important, and cleaning a coin harms that original surface. (Cleaning the crusty clad coins you dig up with your metal detector is fine; they’re not worth more than face value anyway, and a cleaning helps you spend them.)
Grading is the way a coin’s condition is measured. To grade a coin, one must know something about grading standards. There are several different grading standards out there, and a collector must decide which one he will use to grade his coins and to purchase coins. They are not all the same. You want a conservative standard; you don’t want the coins you’ve graded to be “too far out there!” Just like the FDA meat inspector at the packing plant must know the difference between “prime,” “choice,” and “select” grades of beef, you must know your way around your preferred grading system.
The American Numismatic Association has a grading guide. Another guide is a book called Photograde. Yet another is the Professional Coin Grading Service guide. This is the one I use for two reasons. First, they are the most respected coin grading and authentication service. Second, if I choose the send them coins for grading, I have a better idea of what my coins should grade with them. Submitting my coins to them allows me the opportunity to see how my grading eye stacks up to theirs.
Take a circulated Lincoln wheat cent. Looking through some 5X to 10X magnification, ask these questions: How well defined are Abe’s ear, beard, and hair? How well defined is his bowtie and the details in his coat? Is all the lettering well separated from the rim, or worn into the rim? How detailed are the wheat ears on the reverse? Is the color the right color? Are there nicks and spots on the coin? All of these factors go into determining a coin’s grade.
Because grading can be so subjective, there are several companies that will do this for you. PCGS, mentioned above, is considered the best. NGC is considered the second best, while ANACS and ICG are next. These are the only grading companies really worth submitting coins to. Coins submitted to these are examined by experts. Having a valuable coin in one of their holders is just like how the Pawn Stars call in an expert who puts his seal of approval on a collectible for them. Be aware, though, of how objectively they look at your coins. Just because that Morgan dollar sat in granny’s dresser for 80 years doesn’t mean they are going to find that that fact adds value to the coin!
Are you mystified by coin grading? Are you not sure of what series you want to collect? Once you’ve decided what series to collect, you will become more certain of its grading criteria. Soon, you’ll become a real expert at your favorite series. Visit the Brown County Coin Club on the second Tuesday of each month, at 6:30 pm, at Principally Coins and Metal Detectors, at 3002 Early Blvd, in Early. Meetings provide a great opportunity to learn all about coin collecting. We hope to see you on December 10 for our next meeting. Call Robert Rollins at 325-201-6390 or me at 325-217-4129 for more information.
