Coin Grading Specs – Understanding How Coins Are Graded
By Theo S Steward

Anyone who wants to get into coin collecting, whether as a hobby or as an investment, needs to understand coin grading specs. The condition has a direct correlation to the cost – whether you’re buying new acquisitions to add to your collection, or selling part of your current holdings for profit. Coin grading specs typically cover the following areas:

1. The quality and condition of the blank
2. Quality of the die, and how well it was struck
3. Any wear and tear caused through circulation and/or general handling

Typically, the most valuable items will have an exceptional quality when it comes to the blank and the die, as well as striking. This coinage will also have minimal handling and very little wear and tear. However, there are specific exceptions, such in the case of “mistake” currency or other irregularities that are not typically seen in wide circulation. In those instances, it is the rarity itself that lends additional value, along with the other factors listed above.

There is a 70-point scale used for numismatic grading, called the Sheldon Scale. This scale ranges from (P-1) – the worst condition possible, generally barely recognizable – to (MS-70) which represents perfect mint condition. These grading specs are comprised of three different types:

1. Circulated – currency that has been freely circulated and in use
2. About Circulated (AU) – currency that have seen minimal circulation
3. Uncirculated (Mint State – MS) – currency that have never seen circulation

In order to properly grade your collection, you must know which type you have to begin with. From there, you refer to the coin grading specs for the relevant type. Proper grading requires an excellent light source, suitable magnification, and careful observation of the characteristics of the item to be graded. While it is relatively simple to learn how to grade, it can take some time before you are an expert on grading a particular type. The best collectors understand that it’s necessary to spend the time and effort on coin grading specs to have the best collection possible.

Learn the sought-after techniques of avid coin collectors – it’s simple when you have the right information at your disposal. Theo Steward has put together an excellent compilation of information on coin collecting for both experienced and novice collectors alike. Learn how to tell if the real worth of coins in your collection, and how to use professional coin grading specs in ways that will most benefit you. Subscribe to the free coin collector mini course and discover the secrets that the professional coin collectors use to amass their own collections.

Article Source: http://EzineArticles.com/?expert=Theo_S_Steward
http://EzineArticles.com/?Coin-Grading-Specs—Understanding-How-Coins-Are-Graded&id=2373264