Coin grading is a process that entails grading or determining the condition of a coin. This is a very important aspect in finding out the apparent value of the coin. This is very valuable for coin collecting. There are several criteria used in grading the coins. For some, this is considered an art form. Though there are some scientific aspects that are utilized to actually grade the coin, there are still some aspects that require the person to have an innate understanding of a good, bad, new or old coin and therefore, appraise it to the right value.
Determining the grade of the coin
The grade of the coin is based on its actual appearance. A grade is a short hand for the quality of the coin based on how it looks, how good or bad it looks compared to the age of the coin and how well preserved is the surface. The grading systems are extremely diverse and complex and therefore, it could take several years before a coin collecting enthusiast or an actual grader to perfect this skill of grading the coins by their mere appearance. If you are planning on doing your own grading, it is necessary to start looking at highly reliable references from reputable grading companies. They have publications to help you out.
Rarity or interest factor
Aside from the physical appeal of the coin, another factor can determine its actual value and it is the rarity of the coin. There are certain coins that are authentic and are extremely scarce. It is very hard to find these coins, and someone who has one could be holding something that is worth hundreds and thousands of dollars to millions of dollars in overall cost. A rare coin is simply something that is of limited circulation, in good condition and is authentic. A lot of experts can tell if the coin is just a replica of the other one. This also follows the law of supply and demand. As the supply decreases, the demand increases and vice versa. That is why a very rare coin has more interest factor and more value than a common coin.
Age of the coin
Yes, all rare coins are old coins but not all old coins are rare. Old coins cannot be minted and there will never be an increase in number of old coins. Some of these coins are extremely old and some of themre valued at a couple of hundred dollars.
The Bouillon or Liquidity of the coin
How much will this sell in the market or when auctioned? Liquidity is a numerical gauge showing how fast or slow the coin will be sold into the market while the bullion value is how it will rise or fall in amount.
Coin grading is a very intricate art that allows the coin grader to have a thorough understanding of the value, significance, rarity and sometimes, historical relevance of a coin. It is an art and a science on its own and though it would be hard to make a fortune out of it, serious collectors can enjoy the pleasure of categorizing and identifying the value of the coins they have.