Why is Collectors Acceptance Corporation (CAC), Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC) important in gold coins? What do they mean for the investor? What are the differences in these grading standards?
CAC in 2007 was founded by leading authorities in the numismatic community including John Albanese, a respected authority for coin grading and also the rare gold coin market. As a former member of the NGC grading system, he decided there was a need for a grading system to hold gold coins to a higher standard. Especially since the market was increasing with gold coins on the lower end of their grade. Both PCGS and NGC have both provided excellent grading of coins over the last 20 years but there are some inconsistencies which mean that coins should not be in the possession of the holder. Resulting in coins that are actually not only difficult to sell but also have become a large part of the market in terms of bids being placed on the sale of the coins.
CAC approved coins come with the Green Standard, are recognized, held by a higher standard and ensure the coin’s value. Each coin is graded and only those coins of which have met the standard for sophisticated buyers are awarded this sticker. Thus ensuring the quality and purity of the coin to the prospective buyer.
NGC was founded in 1987 and introduced a new standard of integrity in the gold coin market. A standard was established for consistency and accuracy in grading for gold coins. The team of numismatics with their knowledge, integrity and dedication ensures the grading standard incomparable among the grading services. NGC coin graders are not involved in the commercial buying and selling of gold coins. Therefore, the only purpose of NGC is to determine accurately the grading level of a gold coin. Once the coin has been graded it is then sealed in a holder that will not affect the encapsulated coin.
PCGS began its standard in 1985 and was established by a group of leading coin experts which recognized the need for an industry standard. The physical condition, grade and the universal standard PCGS was created. The third-party appraisal solution for a coin’s physical condition was then backed by a guarantee. Providing the national network of reputable coin dealers an extremely reliable form of protection for rare coin collectors. PCGS standard created a climate for consumers in which they could participate in a coin market with increased confidence.
In looking over each of these gold coin standards one would wonder which one would be the standard of preference? Actually, they are all pretty much the same leading the prospective buyer to choose on their own preference. Keep in mind that each standard can bring a different price, including the grade and age of the coin as additional factors for determining the price. Price in itself is a factor for the prospective buyer and the seller. In looking over the gold coin market the determining factor for selecting a gold coin and grading standard is actually based primarily on weighted variables of volume and availability.
If you are looking for value and collectibility checking for a grading standard is important in your investment. It not only determines the value of the investment but also insures it at the time of sale. Not all coins are equal in grading and the denomination of the coin is not always the determining price. With volume, grade and the collectibility of the coin as a factor in determining price, the rare coins market sets itself apart from the production volume commemorative coin market. Two different markets and often one has a grading and certification and the other will not. Merely buying gold coins as an investment is not going to increase the investment holders financial position. Knowing whether or not there are grading standards and certification in the gold investment will provide confidence and certainty in the return on investment.
If you are looking for a secure investment during the current difficult economic times, and need relief from unstable banks and global financial services, purchasing gold coins is a good option, one proven with historical value and return.