Just like any other collectibles, coins have their own criteria of value. Usually, numismatists distinguish coins according to the following
qualities:

• Date and Mintmark;
• Mintage or population;
• Condition of the coin.

However, once somebody asks what the most valuable coins to
collect are, different numismatists may give different answers. Simultaneously,
the collectors` community has worked out a certain grading culture that helps
to validate various items formally.

Once beginners are not sure about their grading skills, they can use two essential guiding factors:

• Buy from credible and famous dealers, recommended by experienced numismatics;
• Buy certified coins only.

However, it is important to understand that even once you address a well-recommended and credible grading party, the whole process remains fully subjective. It means that it depends on the examiner’s likes and dislikes, who is also only human. Normally they evaluate:

• Strike – How visible are the design details of the coin;
• Surface Preservation – Bag marks, hairlines, imperfections;
• Luster – how the coin shines and reflects light;
• Eye-appeal, which is an entirely subjective matter.

Grading services and the
difference between them

The modern American numismatic market recognizes two top grading services. Their expertise and certification are commonly undeniable. Those are:

• Professional Coin Grading Services (PCGS);
• Numismatic Guaranty Corporation (NGC).

Their status means that coins graded by those two organizations get instantly accepted according to their given certification There are other grading service providers on the market today, but once you come up with the
coin certified by those less recognized and credible graders, be ready that your item may get “devalued” as those graders might have significantly looser grading standards.

Once we talk about the difference between coin grading services providers, it is all about their reputation, credibility, and uncompromised grading standards. The name does matter in the numismatic world.

Is NGS or PCGS grading
necessary for all coins?

The grading process is quite complicated and requires the time and expertise of professional numismatists. Especially once we talk about NGS and PCGS grading services. So, if you ask whether grading is crucial for all coins sold and purchased on the numismatic market, the answer is no. Despite being valuable and popular collectibles, most coins simply aren’t worth the money that certification requires.

However, it is pretty natural that you might want to get proper grading certification from a credible service provider once you are about to make an expensive acquisition for your collection.

Is grading worth it at all?

Yes, very often! To answer this question, it is important to understand why do you collect coins. There may be two scenarios:

• It is your hobby, a personal pleasure that has a great sentimental value for you; You look at your collection as an investment, hoping to gain profit from your acquisitions or build a business in the world of numismatics.

In the first case, the spending on grading certifications might be a waste of money and energy. However, once you decide to sell an item from your collection, having a certification from NGS and PCGS eliminates the notorious human factor from evaluating the process. In other words, while the grading parameters are pretty subjective, a certification from those institutions serves as an irrefutable argument.

Buying collectible coins –
rules for the beginners

Once you feel the urge to add some significantly valuable items
to your collection, make sure to follow some basic rules:

• Keep track of your budget. It is pretty common for collectors to get carried away and start spending all
  their money on new acquisitions. The best way to keep track of your hobby budget is to determine the money you are willing to spend, put it aside and use it as a work-frame for a month or year at your choice.
• Educate yourself. Although you may always rely on the services of professional graders, the more you know
  about coins, the less are your chances to make a costly mistake or waste your money on unnecessary certifications;
• Invest in scarce items. Once you decide to spend such a significant amount of money on another
  collectible coin, make sure that it is a classic and scarce item. Although today you may find lots of pretty valuable modern coins, their true value remains quite unstable due to their accessibility and uncertain future.
• Buy certified when it is justified. Once we talk about a coin that costs over $500, the certification is not only justified, but it may be crucial. However, as we have already mentioned, certifications from the most reputable providers
  may appear quite costly and even exceed a coin’s value.