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Through the mid-1980s, rare coin prices were determined by dealers using
their own subjective criteria to judge the quality and condition of a coin.
Unfortunately, this practice led to conflicts of interest and often abuse in
our industry.
Today, however, investors enjoy consistent, independent third party grading
of coins by firms whose sole function is the authentication and grading of
coins. These grading services, PCGS and NGC, adhere to precise,
industry-wide grading systems. In addition, grades are not determined by any
one individual, but by the consensus of a panel of experts. To protect the
integrity of the grade, coins are sealed in tamper-resistant, plastic holders
that are sonically sealed with a unique certification number, bar code and
the grade permanently displayed.
These two leading independent coin grading firms in the United States are the
Professional Coin Grading Service (PCGS) and the Numismatic Guaranty
Corporation (NGC). Both of these firms enjoy industry-wide acceptance of
their grading standards and guarantee both the authenticity and condition of
each coin they grade.
Since the introduction of independent, third party grading, rare United
States coins have become one of the most liquid of all tangible assets. Coins
that have been certified and encapsulated by either PCGS or NGC can be traded
on either a "sight-seen" or a "sight-unseen" basis.
Both PCGS and NGC issue "Population Reports" every month. While also giving
the mintage, these reports tell the observer how many of each and every coin
denomination, type and grade have been encapsulated by each grading service.
NOTE: We give a free Population report to every client that spends over
$2000 with us. A $20 value!
Independent certification of coins has also led to the development of several
electronic numismatic exchanges. These exchanges link literally hundreds of
qualified dealers, who, based on the certified grading statement, can offer
buy and sell quotes on virtually any certified United States coin.
Don't misunderstand, the rare coin market is still pretty thin when compared
to the stock or bond market, but when compared to other collectible markets
the liquidity of rare coins is extraordinarily high. This is one of the
factors that makes buying United States coins particularly attractive in
today's environment.
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