Contents
Mint Condition: Graded Coins Minting Money
AUTHENTICITY: FAKES ARE MORE COMMON THAN YOU THINK
Although the PCGS encounters only about 25 counterfeit coins per every 10,000, the Federal Bureau of Investigation reports that consumers spend millions of dollars on foreign-made counterfeit coins sold in various online auctions, social media, and retail websites. In 2021, federal officers at Chicago’s International Mail Facility seized 279 shipments from China containing counterfeit coins and currency.
Even encapsulation cases are being faked. According to Coin World magazine, “A Chinese online distributor of counterfeit United States coins is now offering what amount to ‘starter kits’ of counterfeit Professional Coin Grading Service holders with fake grading labels.”
The three standard tests authentication companies use to search out counterfeits are accurate measurements, a lack of magnetism, and surface features. Collectors of historical examples are wary of the following top five most counterfeited U.S. coins:
- 1909-S VDB Lincoln Cent: The San Francisco Mint cut production short at 484,000 coins because of controversy. Usually, a counterfeiter will add an “S” to a Philadelphia VDB cent.
- 1916-D (Denver) Mercury Dime: The small mintage of 264,000 made the 1916-D a rarity virtually from the day of its issue. Usually, a counterfeiter will add a “D” to a Philadelphia 1916 dime.
- 1914 Gold Quarter Eagle: This coin has the second-lowest mintage in the Indian Head series.
- 1914-D (Denver) Lincoln Cent: The Denver Mint released just 1.2 million of this coin compared to the 75 million produced in Philadelphia. Most often, counterfeiters will file the first “4” of a 1944-D to create a false 1914-D.
- 1882 “Indian Princess” $3: The moniker of the known counterfeit artist of this coin is known as “Omega Man” because fakes feature the Greek letter Omega (Ω) inside the loop of the “R” in America.
Source: NGC: Counterfeit Detection
CONDITION: AN UNBIASED GRADING SCALE
A coin’s grade significantly affects its value, and having a professional, unbiased grade can enhance its marketability and trust. Coin graders typically use a standardized scale, the Sheldon scale (ranging from 1 to 70). Universally accepted grading makes coins often easier to sell, both in private transactions and at auctions, due to buyers’ increased confidence in their condition.
In his video on the importance of grading coins, WorthPoint Founder and CEO Will Seippel says: “The reality is a perfect coin could be worth hundreds of times more than a bad coin. And with grading and computerization and [the] ability to track things, the true scarcity of perfect coins, or uncirculated coins, has really come to be known.”
PROTECTION: ENCAPSULATING COINS IN SLABS
Authenticated and graded coins are often encapsulated in tamper-evident holders, known as “slabs.” The slabs protect the coins from physical and environmental damage, preserving their condition over time.
The encapsulation method provides detailed documentation about the coin, including its grade, the number of similar coins known to exist, and other unique characteristics. This documentation can be useful for insurance purposes and in estate planning.
WORTHPOINT RESOURCES & REFERENCES
ARTICLES
For more information, check out WorthPoint’s Blog featuring 105 articles on the U.S. coin market, including:
- “Loose Change: Profiting From Coin Minting Errors”
- “Inventory Control: Coin List Details Are Important For Estates”
VIDEOS
- Picking With Will: An Introduction To Coin Collecting
- Picking With Will: Coins, Part 2
DICTIONARY
WorthPoint’s Dictionary has more than fifty articles on U.S. coins, including:
- “The History of United States Coinage”
LIBRARY
- Catalogue of Coins, Tokens, and Medals in the Numismatic Collection of the Mint of the United States by The United States Bureau of the Mint
- United States Paper Money and Coins by George H. Blake
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