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Both in the investing and collectible worlds, coin certification offers a multitude of benefits. What most people don’t realize, though, is that this term could mean multiple things. This is especially the case if you ask both a collector and an investor what the term signifies.
Regardless of who you’re talking to, though, a certified coin is always a good thing. Of course, not all coins are worth certifying. Certain items are perfect just the way they are, so there’s no need for the additional expense of certification. Knowing when this applies is imperative.
At Silver Gold Bull, we know that informed investors and collectors make better decisions. That’s why we’ve created this guide on the basics of coin certification and what the process offers. When you’re done reading, you’ll know whether a certified coin is worth a purchase.
What Is a Certified Coin?
When you hear a coin advertised as “certified,” it certainly sounds like a smart investment. What is coin certification, though, and why is it important? The following processes and products will explain this term in more depth and provide a foundation of knowledge as you move forward.
Grading System Coin Certification
The term “certified coin” is most frequently used to describe coinage that has gone through a grading process. Not only does this verify the authenticity of the item, but the process also applies a grade that signifies the condition of the coin. Grades can include letters and numbers.
Five factors determine the grade of a coin. These are strike, luster, attractiveness, color, and preservation. When these systems first emerged, there was only recognition of three conditions: good, fine, and uncirculated. Things have changed significantly since that time.
The following are among the most reputable coin certification services:
- Numismatic Guaranty Corporation (NGC)
- American Numismatic Association Certification Service (ANACS)
- Independent Coin Graders (ICG)
- Professional Coin Grading Service (PCGS)
The reputation of these services means their grades get taken seriously. Once an item receives a grade, it’s easier to price it accurately. Coins with numismatic value are typically more valuable when they have higher grades.
Consider the 1921 Morgan Silver Dollar. A specimen in ‘Very Fine’ condition could sell for $30 in July 2021. The same coin in Mint State 65, though, could easily bring in $500. One in Mint State 67 — a mere two points higher than the $500 coins — sold at auction for nearly $20,000 in 2015.
This makes it pretty clear that coin certification grading is a big deal whether you’re an investor or collector. Moral of the story: pay attention to the condition of your coins. Something you bought merely as bullion could have far more numismatic value.
Proof Sets as Certified Coins
Less frequently, you’ll hear government proof sets referred to as certified coins. These typically come in presentation packs, cases, and boxes. In modern times, they’re also encapsulated for protection. This helps preserve their condition and maintain their value.
When coin certification references proof sets, there is no process the coins go through. They’re certified because they come directly from government mints. Proof sets have hit the market for many coin types — not just gold and silver bullion — and they’re often geared toward collectors.
Ever since 1936, the U.S. government produced proof sets that contained one of every currently minted coin. The following are some of the most valuable:
- 1975-S Proof Set, No S Mint Mark ($375,000)
- 1968-S Proof Set, No S Mint Mark ($16,500)
- 1936 Proof Set ($6,800)
- 1990-S Proof Set, No S Mint Mark ($5,000)
- 1990-S Proof Set, Prestige, No S Mint Mark ($5,400)
These prices vary over time, but they showcase how valuable government-certified coins can be. The U.S. Mint now also creates commemorative coins in proof sets. The American Eagle Proof Gold Coin, for instance, comes with an airtight capsule, velvet display, and certificate of authenticity.
Since these items come fresh from the mint and in protective capsules, there’s no reason to send them to a coin certification service. The recognition of their value and condition is universal. Older proof sets that received wear over the years, however, might benefit from grading.
How Does Coin Certification Work?
A certified coin proof set doesn’t have much of a process. There are special production methods used to produce them, but they’re already encapsulated when you receive them. Going through the coin grading procedure, though, is a different issue altogether.
It’s important to know that grading coins isn’t an exact science. Every grade is an opinion based on standard definitions accepted by numismatists and coin dealers. Even minor details can raise or lower the value of a coin. Once a grader receives an item, they first note its circulation status.
These include:
- Circulated.
- About uncirculated (AU).
- Uncirculated (e.g. Mint State or MS).
Grades for circulated coins go from P-1 (e.g. Poor) to EF-49 (e.g., Extra Fine). Almost uncirculated coins range from 50 to 59. Uncirculated coins range from MS-60 to MS-70. These are three separate ranges, though, so a circulated EF-49 may appear more pristine than an MS-60.
To make an accurate coin certification, the grader will use an excellent light source and coin magnifier. They’ll then decide the circulation status of the item and look for damage, wear, and degradation. Their expertise in the field allows them to apply a grade based on these and other factors.
How Do I Get a Coin Certified?
If you have a coin you want certified, it’s fortunately a simple endeavor. The process of the Professional Coin Grading Service is a perfect example. The way you go about this process, however, will differ based on your situation.
If you have several items that need coin certification, it might be easiest to become a member of PCGS. From that point, you’ll choose your grading tier based on fair market value, select any add-on services, and download the appropriate submission forms to fill out.
After you’ve finished this, you simply send off your coins for grading. If you only have a few coins that need certification, though, it’s best to visit a PCGS-authorized dealer. They’ll add their own fee to the price of grading, but it’s typically far cheaper than getting a membership.
Does Coin Certification Add Value?
In many ways, certified coins hold more value. When you look at proof coins issued by the U.S. Mint, you can immediately see this in the price difference. The striking process combined with protective features ensure the items will remain beautiful for years to come.
When looking at coin grading services, though, there are additional considerations. Rare coinage and those that are more pristine than average, for instance, can certainly benefit from coin certification. This offers recognition that an item has met stringent requirements to earn its grade.
Of course, not every coin will achieve a high grade. In fact, there are plenty of P-1 (i.e., poor condition) items out there that look like they’ve seen some rough times. When people send in these coins, though, it’s more often to verify their authenticity.
This means coin certification can add value in a variety of situations. It’s typically not advisable, though, to have a coin graded that won’t benefit from the process. A 1964 Washington Quarter, for instance, will be worth essentially the same whether it’s graded Good, Fine, or Extremely Fine.
Leave the cost of coin grading for items that are especially rare or much more pristine than they should be.
Are Certified Coins a Good Investment?
If a coin wouldn’t see much added value from coin certification, going through the process likely isn’t a necessary investment. After all, circulated silver coinage from the 1960s will probably only be worth its intrinsic precious metal value. For many coins, though, certification is a great idea.
Coins certified through grading services also offer a great investment opportunity. A certified American Eagle Silver coin with a grade of MS-69, for instance, sells for 33% more than its uncertified counterparts.
The trick to getting value out of coin certification is knowing what you’ve got, and that’s the goal of the entire process. If you discover you have a coin that would hold far more value with a legitimate grade, it may be worth going through the process.
Start Your Journey in Coin Certification Today
Whether an item is brand new off the minting press or seriously damaged from centuries of wear, it can earn the label of a certified coin. While the definition may vary depending on who you ask, certification is always a good thing. It lets you know exactly what you have.
In addition to knowing precisely what you’re buying, a certified coin is typically also easier to sell. After all, whoever buys the item from you will also appreciate knowing what they’re getting. Because of this, coin certification may help your item command a higher price when you cash in.
All the bullion offered at Silver Gold Bull is guaranteed, but we also sell certified coinage. Visit our Certified Gold and Silver Coins page today to see all your options. Whether you’re a collector or an investor, you will find something to love.
