Why Should You Buy Graded Coins?
The popularity of graded coins among collectors has surged, with encapsulated (slabbed) coins now frequently available for purchase. In this article, we will explore the reasons behind the increasing popularity of third-party authentication and the advantages of buying these authenticated, graded, and encapsulated coins.
To understand the origins of third-party grading, we must look into the issue of coin counterfeiting.
While counterfeiting has existed for millennia, modern counterfeiters have become exceptionally adept at producing fake coins that closely resemble genuine ones. Previously, casting and pressing were common methods of counterfeiting, resulting in unconvincing coins with noticeable differences in weight and texture. However, in recent times, counterfeiters have turned to computer-aided design (CAD) software, enabling them to create highly detailed molds and dies that produce counterfeit coins nearly indistinguishable from authentic ones.
To safeguard against counterfeit coins, it is crucial to purchase coins from reputable dealers and opt for coins that have been authenticated and graded by independent third-party companies. The most prominent and trustworthy among these grading companies are the Numismatic Guaranty Company (NGC) and Professional Coin Grading Service (PCGS), both of which we are accredited and vetted dealer members of.
An elusive 2009 kew gardens gold proof piedfort 50 pence which has achieved the coveted PF70 grade from NGC
At these third-party grading companies, industry-recognized experts meticulously assess each coin for authenticity and assign a grade ranging from 1 to 70 to indicate its condition. The certified coins are then securely encapsulated in tamper-evident holders, often referred to as "slabs," which prominently display the coin's details, including its grade. These companies offer comprehensive guarantees for both the coin's grade and authenticity, ensuring only genuine coins receive their certification.
There are numerous benefits to buying grading coins, these include:
- Authenticity: Certified coins have undergone professional authentication, providing assurance of their genuineness, which is especially crucial for rare or valuable coins, given the prevalence of counterfeits in circulation.
- Grade: The assigned grade is a crucial factor in determining a coin's value, and a certified coin's grade is assessed by a professional grader, offering a clear understanding of its condition.
- Verification of varieties: Certified coins can help verify the authenticity of distinct coin varieties, which are coins struck differently from others of the same type—significant for collectors interested in rare or unusual coins.
- Protection: Encapsulation in protective holders safeguards certified coins from damage, making it particularly important for those storing or displaying their coins, as it preserves their condition over time.
- Liquidity: Certified coins are more liquid in the market compared to ungraded coins because buyers are confident in their genuineness and good condition, rendering them more appealing.
- Peace of mind: Knowing that your coins are graded and authenticated provides peace of mind, especially for serious collectors, as it safeguards their investment.
Grading companies such as NGC will also authenticate mint errors. Such coins carry a premium due to modern quality control practices and unscrupulous individuals will intentionally damage coins to resemble mint made errors
Buying only graded coins is now a must for most collectors, especially for those who are passionate about collecting valuable or rare coins. By buying graded coins collectors can ensure that their outlay is protected. BSC Collectibles only sells graded coins, this means that in addition to our own no-quibble guarantee of authenticity you are also protected by the comprehensive guarantee offered by the grading company. BSC Collectibles carries one of the UK’s largest inventories of authenticated and graded gold coinage, you can visit our online store by CLICKING HERE.
Please note: Any information relating to the past performance of an investment is not a guide to future performance. Values can fall as well as rise and you may not get back the original amount invested. Bath Spa Capital Limited is not authorised to offer investment or tax advice.