Certified gold coins are coins that have been graded by a professional coin grading company.  The two best known and respected grading companies are Professional Coin Grading Service (PCGS) and Numismatic Guarantee Corporation (NGC).  In fact, most people who buy gold coins prefer to acquire coins from these two companies.

What coin grading companies do is authenticate, grade and guarantee coins.  PCGS has been around since 1986 and have graded over 11 million coins.  When a coin is sent to PCGS for example, it is graded by two separate graders.  The first grader authenticates the coin and then assigns it a grade.  The coin is then redistributed to another grader who goes through the same process.  If the coin does not receive the same grade by both graders then it is given to a third grader to break the tie.

After the coin is graded it is sonically sealed in a tamper proof container and given to one last grader for inspection and quality control.  The coin cannot leave the facility without at least two graders agreeing on the grade.  Inside the case are the details on the coin.  The label will give the date a coin was minted, the location of the mint, the quality score as well as a serial number.

All gold coins are graded on a scale from 1-70, with 70 being perfect condition.  Gold coins that are graded can be very old up to modern issue bullion coins.  Some collectors enjoy grading their modern issue bullion coins in hopes that one day they will be worth much more.

Back in the old days gold coins were kept in bags in vaults.  If they never went into circulation they would receive a grade of mint state today.  Typically the lower in the bag a coin was the more scratched and dinged it would be and vice versa.  The bottom coins in a bag would get a score in the low 60’s and those on the top of the bag would receive scores more towards the middle to upper 60’s.

When diversifying a portfolio with certified coins it is important to understand that rarity as well as quality plays a roll in the value and strategy of each coin.  The higher the grade, typically the more valuable the coin will be.  The rarer the coin the more valuable it will be.  Coins will vary in rarity within each grade.  Choose each coin carefully for your goals and objectives.