Why buy Graded Coins?
What is coin grading?
Coin grading is a process carried out by a professional, recognised person or company to verify the ‘grade’ of a coin.
Knowing how coins are graded can help to determine the physical condition and value of a coin, with coin grades ranging from poor to perfect. However, the majority of coins fall somewhere between these two extremes. Once a coin is graded, a collector is then able to easily recognise a coin’s condition, original strike type, and authenticity.
The grading system
Coins are now graded based on what is referred to as the ‘Sheldon System’. A 1 to 70-point grading scale developed by William Sheldon in 1949, this system is widely accepted across the world as the fundamental standard of quality for graded coins.
Using this scale, as the numeric grade increases, the coin’s condition is considered to be finer. For example, a coin with a rating of 1 represents a barely identifiable coin, whereas a 70 represents a physically ‘perfect’ coin with a full strike and no markings (though these are extremely rare).
Why graded gold coins outshine loose coins for UK collectors and investors ?
While both graded and loose coins represent a valuable means of owning precious a metal, a closer examination reveals that for UK investors, graded gold coins often offer superior advantages.
Graded gold coins are assessed and certified by professional grading services based on their condition, authenticity, and rarity. This grading process places them in a league of their own, offering benefits that go beyond the intrinsic value of the gold they contain.
Ungraded coins are much more subjective in value. In essence, coin grading takes the guesswork out of figuring out the value of a coin or set of coins.
What are the main benefits of graded coins?
Authenticity and Quality Assurance:
Graded coins come with a guarantee of their authenticity and condition, a crucial factor for both collectors and investors. This certification reduces the risk of counterfeit coins and ensures that the coin you purchase meets a universally recognised standard.
Increased Collectability and Rarity:
The appeal of graded coins often lies in their rarity and the historical narratives they carry. Collectors are willing to pay a premium for coins that are not just made of gold but also tell a story, making graded coins particularly valuable.
Marketability and Transparency:
The clarity provided by the grading system means that buyers and sellers have a common language to discuss the value of a coin, making transactions smoother and more transparent.
A Tangible Piece of History:
Graded coins offer a unique connection to the past, with each piece telling its own story. This historical and aesthetic appeal adds a layer of value that goes beyond mere gold content.
A Smart Tax Move:
The tax benefits associated with certain graded coins can make them a more attractive investment option. The exemption from CGT for UK legal tender coins extends to their graded versions, offering a clear advantage for those looking to maximise their investment’s tax efficiency.
An Investment in Beauty:
Beyond the financial aspects, collecting graded coins is an investment in beauty and craftsmanship. Each coin is a work of art, with its design and condition contributing to its overall appeal.
Long-Term Value Potential:
While the initial cost of graded coins may be higher due to the grading process, their potential for appreciation over time—thanks to their rarity, condition, and collectability—can offer superior returns compared to loose gold coins.
Online registration:
Each coin is given a unique registration number which serves to catalog the coin at the grading service. In many cases, it is possible to look up this number and verify your coin’s information.
What information will I receive from a graded coin?
