Certified Gold Market Posted by James Randolph on January 26, 2010
The certified gold market came into existence in order to provide a safe and orderly means of buying and selling rare gold coins. The value of a rare gold coin has more to do with its rarity and condition than with its bullion content. Since the mid 20th century, the Sheldon system provided a 0 to 70 scale for grading coins. However, it was all too common that a dealer might grade a coin higher on sale than upon purchase. For very rare and very well preserved gold coins, this matter of varying grades could cost an investor tens or even hundreds of thousands of dollars.
The Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC) began certifying rare coins in 1986 and 1987 respectively. These companies offer impartial, third party grading of rare coins. Tens of millions of coins have been graded and comprise the certified gold market in rare coins. These companies stand behind their work and promise to compensate investors if there ever were an inaccurately graded coin.
An investor can purchase a certified rare gold coin from a dealer with the assurance that the grade he or she buys at is the grade that the coin will eventually sell at. Near mint state rare gold coins have appreciated over a hundred fold in value between 1970 and the present. Buying a certified gold coin assures the investor that they will profit from the appreciation in the rare gold coin market and not lose because of a change in the coin’s grade on sale.
Senior Staff Writer – Certified Gold Exchange