For this reason we recommend you buy certified coins in holders called "slabs". Buying certified coins can provide a measure of security and lessen your chances of buying an over-graded, doctored or counterfeit coin. There are around a dozen coin certification services in the United States. Westminster Mint only recommends coins certified by the top 4 third party coin grading services PCGS, NGC, ICG and ANACS. These are all widely respected and nationally known services and are considered to be industry leaders.
Mint state coins are coins struck for circulation that never went into circulation. They are graded on a 10 point scale from Mint state 60 - mint state 70
MS70 - The perfect coin. Has very attractive sharp strike and original luster of the highest quality for the date and mint. No contact marks are visible under magnification. There are no noticeable hairlines, scuff marks, or defects. Eye appeal is attractive and outstanding.
MS69 - Has very attractive and full original luster for the date and mint, with no more than two small none detracting contact marks or flaws. No hairlines or scuff marks can be seen. Has exceptional eye appeal.
MS68 - Has attractive sharp strike and full original luster for the date and mint, with no more than four light scattered contact marks or flaws. No hairlines or scuff marks show. Has exceptional eye appeal.
MS67 - Has original luster and normal strike for date and mint. May have three or four very small contact marks and one more noticeable but not detracting mark. On comparable coins, one or two small single hairlines may show, or one or two minor scuff marks or flaws may be present. Eye appeal is above average.
MS66 - Has above average quality of surface and mint luster, with no more than three or four minor or noticeable contact marks. A few light hairlines may show under magnification, or there may be one or two light scuff marks showing. Eye appeal is above average and very pleasing for the date and mint.
MS65 - Shows an attractive high quality of luster and strike for the date and mint. May have a few small scattered contact marks, or two larger marks may be present. One or two small patches of hairlines may show. Noticeable light scuff marks may be seen on the high points of the design. Overall quality is above average and eye appeal is very pleasing.
MS64 - Has at least average luster for strike for the type. Several small contact marks in groups, as well as one or two moderately heavy marks may be present. One or two small patches of hairlines may show.Noticeable light scuff marks or defects might be seen within the design or in the field. Overall quality is attractive with pleasing eye appeal.
MS63 - Mint luster may be slightly impaired. Numerous small contact marks and a few scattered heavy marks may be seen. Small hairlines visible without magnification. Several detracting scuff marks or defects may be present throughout the design or in the fields. The general quality is about average, but overall the coin is rather attractive.
MS62 - An impaired or dull luster may be evident, clusters or small marks may be present throughout with a few large marks or nicks in prime focal areas. Hairlines may be very noticeable. Large unattractive scuff marks might be seen on major features. The strike, rim and planchet quality may be noticeably below average. Overall eye appeal is below average.
MS61 - Mint luster may be diminished or noticeably impaired, and the surfaces may have clusters of large and small contact marks throughout. Hairlines could be very noticeable. Scuff marks may show as unattractive patches on large areas or major features. Small rim nicks and striking or planchet defects may show, and the quality may be noticeably poor. Eye appeal is somewhat unattractive.
Introductory guide to collecting MS70 and PR70 coins
Coins certified 70 are the best coins on the market and are
virtually irreplaceable, few other coins can keep pace with the price
and performance of perfect MS70 and PR70 coins
“Coin grade or condition” is a term used within the coin business
to indicate the condition, amount of wear or state of preservation of a
coin. The grade of a coin is important because it is one of the three
critical factors in determining value and future price potential. The
other two factors are rarity and demand.
In the United States coins are graded based on the Sheldon numerical
scale created in 1949 by Dr. William Sheldon that grades coins from 1
(barely identifiable) to 70 (absolute perfection). Only a tiny fraction
of the coins produced each year have the full strike and flawless
surfaces required to be considered perfect mint state 70 (MS70) or Proof
70 (PR70). It’s no surprise that coins graded in MS70 or PR70 are
highly sought after among collectors. As a result, coins with the grade
of 70 generally tend to appreciate in value more quickly than coins in
lesser grades. For example a 1995 PCGS certified American silver eagle
is valued at $40 in MS69 and $4,000 in MS70. The Proof version of the
1995 coin struck at WestPoint has a list price of $3,400 in PR69 while
the perfect PR70 coin lists for $30,000. Many perfect 70 coins issued
after 1982 can still be bought for under $200. Buying modern issue
1982-2010 coins in perfect MS70 or PR70 condition soon after they are
released is an inexpensive way to collect perfect coins!
Over the past few decade's four independent coin-grading firms have
gained prominence in providing unbiased third party evaluation of coins
for a fee. They are in alphabetical order ANACS, ICG, NGC and PCGS.
These organizations are staffed with well-trained and highly skilled
experts in the art and science of coin grading. When you buy an
independently graded coin certified by one of these organizations you
can buy with confidence.
What you get with a certified coin
When you buy a certified coin you are getting a guarantee from an
independent third party source, ANACS, ICG, NGC or PCGS that your coin
is authentic and genuine, that it has not been altered, tampered with or
cleaned. Certified coins are set in clear plastic holders called
“slabs”. These slabs are sonically sealed and tamper evident and help
protect and preserve the coin in its original pristine MS70 or PR70
condition. A description of the coin and its numerical grade are sealed
into the holder; making it easier to place a value on the coin when you
want to sell it. Most coin collections are passed down from generation
to generation, often the people inheriting the collection know very
little about the coins, the certified holders will allow them to safely
handle the coins without damaging them, the numeric grade will help them
easily identify each coin and find its true value.
Handling Coins
Certified coins are encapsulated in clear plastic and can be
handled without the fear of damaging the surfaces with oils and other
contaminants on one’s fingers. The acid or other naturally occurring
chemicals on your fingertips can leave a residue on a coin’s surface
that can’t be removed. Improper handling of coins can cause abrasions,
decreasing the value of the coin by exposing fresh metal that can
oxidize and corrode.
Your questions Answered
What does it cost to have a coin graded?
The current fee charged by ANACS, ICG, NGC and PCGS is $30 per coin.
Can anyone send in a coin to be graded?
Coin grading is available to anyone who pays the grading fee plus
shipping and handling. The chances of submitting one coin and it coming
back in perfect 70 condition are small.
How does the grading process work?
Each coin is inspected under magnification and in optimum light by
two coin graders who assign a grade to the coin. If both graders assign
the same grade the coin moves forward for encapsulation into a slab. If
the first two graders disagree and don’t assign the same grade to the
coin it is passed along to a more senior expert who will decide the
final grade of the coin.
Is there an extra charge or fee for grading a coin in perfect 70?
No. You pay one fee regardless of the result. Dealers can’t pay
extra to get more coins graded in perfect 70. Remember the coin grading
service makes money from grading fees it has no interest in the retail
value of the coin.
Aren’t all coins perfect 70 when they are released from the mint?
Coins are produced on a commercial production line in vast quantities
and very few have the full strike and flawless surfaces required to be
considered a perfect coin. Depending on how the coins are stacked and
packed by mint employees, some perfect coins coming off the production
line can already be damaged before they leave the mint. We recently
submitted a mint sealed 500-coin box of 1 oz silver Canadian Maple Leafs
we bought on the first day of release. None of these coins graded
perfect 70 and only 129 coins graded MS69. Maple Leafs are known for
their high quality and sharpness of strike but this batch had residue on
the surfaces and the coins did not make the grade leaving us thousands
of dollars in the hole on grading fees.
Can every coin be graded in perfect 70?
No most circulation strike mint state coins like pennies, nickels,
dimes and presidential dollar coins don’t grade perfect MS70. The
highest known grades for these coins are MS68 and MS69. Proof versions
of these coins, which are made to a much higher quality, do grade PR70.
Are all grading services the same or is one better than the rest?
Having four major coin grading services, ANACS, ICG, NGC and PCGS
serve the interests of the coin collecting community better than having
only two. The industry is very competitive and each service wants to
gain the most market share and best reputation. The truth is it would be
hard for any company to be number one because of the spectrum of coins
they grade - Ancient Greek and Roman coins, Shipwreck coins, mint error
coins, Classic gold coins, foreign coins, pennies, nickels and dimes
etc. people have their own preference for a particular service because
they deem it the best or because most of the other coins in their
collection are graded by a particular service. Westminster Mint is an
authorized dealer for all four services and can fill orders in any
holders you require.
Are the prices of all MS70 and PR70 coins the same?
The short answer is no. Depending on how few or how many coins have
been certified perfect 70 by a grading service, known as the (certified
population), there can be a big difference in price. Take the 1995
silver eagle as an example. The coin lists on the PCGS price guide for
$4,000 in MS70 because only one coin has been graded perfect MS70.
Compare this to the NGC price guide that lists the same coin for $660.
NGC has certified 360 coins in MS70.
Who sets the price for graded coins?
The prices listed on a price guide are average dealer asking prices
for graded coins. The prices are compiled from various sources including
dealer ads in trade papers, dealer fixed price lists and website
offerings, significant auctions, and activity at major coin shows. Price
guides are just a starting point for asserting value. Some coins sell
for less than the prices listed and some coins sell for more than the
prices listed. Depending on supply and demand.
What is the difference between MS70 and PR70?
Coins struck for circulation are called mint state and coins struck
for presentation or for collectors are called Proof coins. The term
Proof refers to the method of manufacture rather than the grade or
condition.
Which are the best MS70 and PR70 coins to buy?
Condition, rarity and collector demand are the three most important
factors to consider when buying any coin. Look out for the coins with
the lowest certified populations and coins that have a solid story
behind them and have widespread collector appeal.
Are MS70 and PR70 coins better than gold and silver bullion coins?
People buy gold and silver bullion coins for different reasons than
they buy collectibles. However, there is room in a collection or
portfolio for gold or silver bullion and high end perfect 70 collector
coins. One thing is true - most certified collector coins that now sell
for $10,000 or even $50,000 could once have been bought for less than
$1,000 and even for a few hundred dollars, whereas bullion coins will
only ever be worth their weight in gold or silver. Take the 1999 silver
eagle for example, we can offer them to bullion buyers for around $25
each. The same 1999 silver eagle certified in the highest grade MS70 by
NGC lists for $6,250 because only 76 coins have attained that perfect
grade.
I have heard First Strike or Early Release coins are the best is this true?
First Strike and Early Release coins are very popular with collectors.
What these terms mean is that the coins have been submitted for grading
within the first 30 days from their official release date. Their
ultimate collectible value is still based on how few or how many were
graded, the (certified population), and the level of collector interest
in acquiring them. In 2008 10,232 silver eagles were certified First
Strike while 4,154 coins were certified Early Releases. These coins are
not rare or particularly valuable yet and both can be acquired for under
$100. Measure the population of these coins against a 1999 silver eagle
certified MS70 by NGC. That coin has a population of just 76 coins and
lists for $6,250.
The PCGS 3000 index has returned annualized 11.3% since 1970 versus DJIA 6.5% since 1970.
Buying coins as an investment
Buying coins as an investment can be a rewarding experience. The
PCGS 3000 index has returned annualized 11.3% since 1970 versus DJIA
6.5%. As with any other investment decision anyone considering investing
in coins should conduct their own due diligence and get informed. The
coin market is unique and has several idiosyncrasies. Coin investments
take a long time to mature and common hold periods are 5 to 20 years.
The market for coins is volatile and thinly capitalized.
Significant short-term price swings and volatility are always possible.
Westminster Mint, its principals and representatives do not
guarantee a profit or guarantee against a loss for any coin you buy
based on this information. You buy and sell coins at your own risk.