06/01/2004
The advent of third-party certification, which offers collectors added security, has boosted curiosity in coin buying. Since 1986 independent companies such as Professional Coin Grading Service and Numismatic Guaranty have been grading rare coins and guaranteeing their authenticity.
Grading is an assessment of a coin’s physical condition measured on a scale of 1 to 70; the higher the grade, the finer the detail, luster and overall appearance. The most desirable, and often most valuable, pre-1933 gold coins are those in uncirculated or mint-state (MS) condition, which carry grades from 60 to 70 and are designated, for example, as “uncirculated MS-60,” “choice uncirculated MS-64,” “gem uncirculated MS-66,” and “perfect uncirculated MS-70.” (Circulated coins are assigned lower grades.)Uncirculated coins have often remained in private collections or in bank-vault bags from the time of minting. Coin experts advise buying only rare coins that have been certified and sealed in a tamper-proof plastic holder called a slab.
VALUE JUDGEMENT
U.S. gold coins minted before 1933 have proven to be excellent Investments for discriminating numismatists.
The most valuable specimens are
from the period between 1795 and 1834, after which improved minting processes
allowed the production of more technically uniform coins. Good condition coins
from this era have increased in value by 30 percent to 40 percent in the
last year.
The most exceptionally designed coin is deemed to be the $20 St.
Gaudens, minted from 1907 to 1933 and designed by renowned sculptor Augustus St.
Gaudens.
Coins from low-volume or short-lived mints, such as those in
Charlotte, N.C., Dahlonega, Ga., and Carson City, Nev., fetch much higher prices
at auction than coins of the same vintage minted at high-volume mints, such as
Philadelphia.
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