Counterfeiting is a problem that plagues any currency. There are always motivations for nefarious individuals to create fake versions of popular coins. Unfortunately, the rarer and more expensive the coin in question, the more likely it is that the coin will become the target of these individuals. To combat this, various numismatic associations around the world have devised methods of certification. Certified coins allow individuals who collect coins to get their acquisitions verified and to make certain that any coins on which they spend their money are authentic. The certification process sometimes involves an option to protect the coin, as well.
The most familiar certification system to coin collectors is the American Numismatic Association’s. This system was introduced it the 1970s. The increasing popularity of both coin collecting and of using coinage as a way to hedge one’s money against inflation resulted in more and more counterfeit issues being found on the collecting market. By 1979, the ANA had stepped in to attempt to restore the ability of collectors to have faith in the market and in the products they purchased.
The coin certification process usually involves two major steps. The first, and arguably the most important, is determining that the coin is authentic. This is particularly important for collectors who have an eye for historical coinage. Historical coins represent a connection to history as much as they do a store of value and, of course, one does not want to find that they’ve been deceived after they’ve invested money in a potentially expensive coin. The other part of the process offers a grade for the coin. This provides a concrete, expert opinion as to the overall value of the coin in terms of how well preserved it is. There are numerous criteria upon which this determination is made.
The front and back of the coin will both be graded in terms of the appearance, any damage to the coin and the overall aesthetic appeal. In the early 1990’s, many coin collectors started inserting their certified coins into plastic holders that protect them from the elements. These holders represent a good way to make certain that the coin doesn’t lose its value due to damage. The certification process makes certain that one gets what they deserve should they decide to sell or trade any coin in their possession. Millions of coins are certified every year.
Tags: certified coins
A nicely written article. Millions of people the world over are losing good money buying counterfeit coins and notes. The worst part is that the counterfeiters are getting away scot free as not much attention is paid to collectors as it is for the prevalent currency.
Like the American Numismatic Association there are institutions around the world where collectors need to authenticate their purchases before they end up with fakes and realize later may be years later when it is too late.