Visiting a certified coin exchange ensures that you are not throwing away precious coins. When you go out to purchase something and get a handful of coins, you may need to take another look at them. Maybe you don’t know, but some pennies offer a fortune.
Did you know that the “Flowing Hair Silver Dollar” 1794 was sold for ten million dollars in 2013? Now, visualize that you have used the coin for a bar of chocolate? Would you be able to forget yourself ever?
So, how to know the worth of your collection? Bring them to a certified coin exchange. They have professionals who understand the value of rare coins. Moreover, they may offer you a hefty amount to buy your valuable coins.
Continue reading to understand what is a certified coin exchange and how it works. Furthermore, we will talk about the process of coin grading, a few worthy coins, and review a few coin exchanges as well.
What Is a Certified Coin Exchange?
The certified coin exchange (CCE) is a trading exchange for certified rare coins. A CCE is a principal exchange that connects dealers. The dealer-to-dealer transaction takes place using a certified coin exchange. Every CCE has a board of governors who decide the trading values. Moreover, they have an important role to resolve disputes.
Most importantly, a certified coin exchange lets coin dealers know the exact pricing of rare coins. Introduced in 1990, CCEs have been the primary exchange for rare coin traders.
How Does a Certified Coin Exchange Work?
Now, you understand the basics of certified coin exchange. Let’s talk about how it works. To access the exchange, dealers need to get a membership. Usually, a CCE has a variety of membership plans.
The standard plan gives you access to prices and information on rare coins. Further membership plans allow you to buy or sell coins on the marketplace.
Dealers who buy or sell in public can become a member of the CCE. They can place their coins in the marketplace. Moreover, they can purchase from other members and sell them to the public. While buying through a CCE marketplace, you have no concerns about the legitimacy of coins.
Here it is important to mention that a dealer much have some expertise to join the CCE. Apart from having an established business, they need to have some experience as well. Before giving the membership, the certified coin exchange verifies information about the dealer.
It shows that a CCE member is professional and has serious experience in the field. Hence, when a customer trade with a CCE member, they can buy or sell with complete peace of mind. It is a win-win for everyone.
How Does CCE Affect the Seller?
For sellers, going to a CCE member gives you confidence that you are trading with professionals. Not only these dealers can use their personal knowledge to offer you the best price, but they also can refer to the exchange.
Some people think that if a dealer has less knowledge, they will be able to get more money for their coins. However, this is completely wrong. A dealer who can verify the coin value would be able to pay you more. When a dealer doesn’t have enough information, they offer less money to reduce their risk.
A certified coin exchange member can place their coins on the market to sell them. It increases the chances of selling these coins and generating a profit. However, when a dealer is not part of a certified coin exchange, they may find it difficult to find a buyer. It makes them offer you less value to offset their risk.
Simply, a CCE member offers you more value compared to a non-member.
Process of Evaluating the Value of a Coin
Now, you understand the certified coin exchange, how it works, and how it impacts the seller. Moving forward, it is time to discuss how they evaluate the value of a coin. When you understand the coin grading method, you know what dealers are looking for. Ultimately, you will be able to increase your revenues.
Things That Impact the Value of a Coin
Talking about the value of a coin, there are three things that determine the eventual value. First of all, the mint mark and date of the coin have a role to play. Usually, older coins have a higher value, but this is not always the case.
What is a mint mark? It is a number, letter, or symbol that tells you where it was created. The date reflects when it was created. Rarely, a coin has error markings about date and location. Surprisingly, it improves the coin’s worth significantly.
Secondly, the production of the coin determines its value. How many coins are produced? How many coins have an error?
Thirdly, the coin condition impacts its value. A minor fault can change the value of your coin. The grading scale helps in determining the condition.
In 1949, Dr. William Sheldon introduced a scale to grade coins, which is known as the Sheldon scale. It gives a coin scores from 1 to 70. 1 is the least valuable coin with no significance at all, while a 70 score reflects a perfect coin, which is quite rare.
A coin with a higher grade means more worth. Even a tiny flaw can result in lower grading. If you have coins, it is time to bring them for an evaluation.
A coin with a score above 60 is usually an uncirculated coin with no flaws. To represent 1 to 70 scales, there are thirteen grades as follows:
- Perfect uncirculated
- Gem uncirculated
- Brilliant uncirculated
- Almost uncirculated
- Extra Fine
- Very Fine
- Very Good
- Almost Good
Although exchanges are using the Sheldon scale, there are few changes to improve the grading system. During the 1980s, it became obvious that the world needed a universal system to evaluate the value of a coin. Buyers and sellers were giving different scores to the same coin resulting in unregulated prices.
Ultimately, it resulted in the grading services introduction. For now, there are two most reputable grading services, including the Professional Coin Grading Services (PCGS) and Numismatic Guaranty Corporation (NGC).
Another popular grading service is the American Numismatic Association Certification Services (ANACS). However, there are some concerns regarding this grading service, which we will discuss later.
Condition vs. Rarity
One of the most commonly asked questions is which is more important, condition or rarity. There is no hard and fast rule on this.
Rarity is usually more important than the condition. A rare coin is usually more valuable than the Flowing Hair Silver Dollar. When collectors find it hard to get their hands on a coin, they are highly likely to pay you more for it.
On the other hand, the condition is also important. A rare coin in good condition gets you more income. However, rare coins in poor condition still pay you more than less rare coins in good condition.
Last but not least, having both good condition and rarity can fetch millions of dollars.
Coin Grading Services
Professional Coin Grading Services (PCGS)
PCGS is a well-reputed grading service on the planet. Established in 1985, the grading agency has a few of the best experts who evaluate coins. With a history of consistency and accuracy, they are highly respected in the industry.
Gladly, they provide you with four tools that help you evaluate your coins easily. Thanks to a money-back guarantee on certification service, buyers can purchase coins with complete peace of mind.
More importantly, they are using NFC technology to avoid fake practices. While buying a PCGS graded coin, you don’t need to worry about its authenticity.
Numismatic Guaranty Corporation (NGC)
Started in 1987, the grading service is the largest coin grading service in the universe. In the numismatic industry, professionals trust NGC more than any other grading service.
With more than 30 full-time graders, they respond to your queries immediately. Moreover, they utilize the services of other consultants as well. They have graded more than 47 million coins, which explains their experience.
To maintain impartiality, they don’t buy or sell coins. Furthermore, they have strict guidelines to ensure that personal favoritism doesn’t affect the process. They offer NGC Guarantee service, which assures that a coin is not fake or over graded.
American Numismatic Association Certification Service (ANACS)
On the brighter side, you don’t need a membership to grade your coins. Send your coins, and they will grade them as soon as possible. However, there are some concerns about their authority.
Unfortunately, the grading service is not widely accepted in the world. The numismatic industry is divided on its capabilities. It means that you are not sure whether your coins are graded perfectly or not.
For a seller, this means that you may overprice your coins and get no buyer. For a buyer, you may pay more than the actual value. And it can harm your reputation as well.
We recommend that you stick to NGC and PCGS for coin grading. They ensure that your coin is graded accurately.
Best Certified Coin Exchanges to Become a Member
If you have an established business and want to become a member of a certified coin exchange, we have got you covered. Here are two top-rated coin exchanges that you can trust without any second thought.
Certified Coin Exchange Review
Established in 1990, the Certified Coin Exchange is a trading system for coin dealers. The trading exchange serves as an intermediary between major coin dealers in the United States. They have the largest messaging system that connects dealers on the internet.
With more than two hundred thousand bid and ask prices, the Certified Coin Exchange is the best platform to trade. Fortunately, the exchange has ANACS, NGC, ICG, and PCGS certified coins.
The platform has more than 600 associate firms and members that trade regularly. Moreover, it features live trading every day.
If you are looking for a certified coin exchange to evaluate your coins, this is the best place for you. Thankfully, they have several membership plans, including Associate Member, Associate Member with Quick Price, and Member Firm.
Being an information and trading service for dealers, they don’t buy or sell coins.
To become a member, you need to meet their requirements. From one year of experience to three-member firm dealer references, you need various documents to apply for the membership.
Crown Gold Exchange Review
Introduced in 2010, Crown Gold Exchange has a positive reputation in the coin industry. Initially, it was limited to silver, gold, and diamond jewelry exchange. Due to their excellent services, they grew to 7 locations only after 12 months.
Later, they partnered with Daniel’s Jewelers to reach more people. Now, they are also buying coins at 10 locations.
When it comes to reputation, they are well-respected in the industry. The certified coin exchange ensures faster payments. They evaluate your coins as quickly as possible and offer you a payment. The best part is that they don’t force you to sell the coin immediately.
The evaluation process takes place in front of you. They answer your questions to satisfy you. With in-depth information, you are better equipped to make a decision about your coins.
Certified Coin Exchange: The Bottom Line
Being a collector, it takes a lot of time, investment, and effort to gather rare coins. It is not a good idea to sell your coins to a local dealer who doesn’t have enough knowledge about rare coins.
For firms or established businesses, buying or selling through a certified coin exchange ensures that you get the most out of your investment. It makes it easy to sell your coins in the market because people trust these coin exchanges. More importantly, you get access to the marketplace.
For individual buyers or sellers, you should always go to a dealer who is a member of a certified coin exchange. They will be able to pay you more than others. While buying, you can purchase without any concerns about authenticity.