Date: June 2012

Re: CoinGuideSA.com Coin Collecting For Dummies

Determi ni ng a Coi n's Approximate Val ue
1. Accurately and properly i denti fy the coi n. You can obtain guidance on how to do this by using
CoinGuideSA.com Price Guide, which has hundreds of pictures which may help you identify the coin.
2. Have the coi n graded by the two most recognised grading companies in the world, NGC and PCGS. CGSA
can help you get your coins graded, simply contact us for details. For more on the grading companies and
the grading system, see below.
3. Look up the val ue of the graded coin on the CoinGuideSA.com Price Guide.
Key Factors Infl uenci ng Val ue
The value of a particular coin is influenced or determined primarily by the following four factors:
1. Scarcity or rarity is a major determinant of value. As a general matter, the rarer a coin the more it is worth.
Note that rarity has little to do with the age of a coin. Many one thousand year old Chinese coins often sell
for no more than a few Rands because there are a lot of them around, whereas a 1902 Veldpond for over
R250,000 because there are only a few specimens in existence.
2. The condi ti on or grade of the coin will influence its value. The better the condition a coin is in, the higher
will be its assigned grade and the more it will be worth. An uncirculated coin that is in flawless mint state
might be worth hundreds times more than the same coin in good condition but which has been circulated.
3. Many coins have a bul li on val ue determined by the value of the precious metals it contains. A gold, silver or
platinum coin made only for it precious metal value does not generally sell for much more than its melt
value.
4. The demand for the particular coin, or how many collectors want it, will also greatly influence coin values.
Some coins that are relatively plentiful may command higher prices than scarcer coins because the former
are more popular with collectors, such an example may be the 2000 Mandela R5 which although relatively
common, is high in demand due to the Mandela brand.
Other factors influencing coin values:
No Factor Importance
1 Catalogues 10
2 Investment Potential 10
3 Mintage 10
4 Rarity 10
5 Scarcity 10
6 Grade 10
7 Supply 10
8 Demand 9
9 Bullion Price 9
10 Popularity 8
11 Advertising 7
12 Age 7
13 Metal Content 6
14 Rumours 6
15 Size of the Coin 5
16 Patriotism 5
17 Tax 5
18 Investment Advisors 4
19 Fascination 4
20 Inflation 3

What Is Gradi ng?
Grading is measuring the present condition of a coin to a theoretically perfect example of the same piece.
Theoretical is used in the above statement because no perfect examples of many coins exist to be used for
comparison purposes.
Coin grading has established levels of imperfection. It is not enough simply say a coin is less than perfect.
Because the condition of a coin can range from being so worn as to be hardly identifiable to as well
preserved as the day it dropped from the dies, the coin grader is obliged to categorize very different looking
objects. The currently popular grading standard gives perfection the number 70 and the lowest grade of 1 to
a coin in poor condition.
If you are new to the hobby you might ask why we don't grade coins based on a scale of one to ten or use
100 as the top grade and 1 as the lowest. The answer is that the system we now use was borrowed from a
method of ranking the condition of Large cents. The original inventor did not intend for it to be used as a
grading system for all coins.
The current numerical system we use to grade coins might suggest there are seventy different grades
because seventy numbers involved. Actually, the current system doesn't use all the numbers available
because there is apparently no need for some of them, at least when money matters. For example, a coin
grader, unless they wish to be unorthodox, can give an Extremely Fine graded coin a numerical grade of EF-
40 or EF- 45. Someone who decided to use the numbers in between might be asked why they are doing
unnecessary hair splitting. Money-wise what does it matter if a coin is graded EF-40 or EF-41? Why is it
then that we use every number allocated to the mint state grades, those being MS-60 through MS-70? The
answer must be because when it comes to mint state coins, each slight difference in grade can be easily
measured in monetary terms. See Grading Scales.
Assigning a grade to a coin is an art, not a science. It is often highly subjective, especially when working with
Mint State coins where small differences in grade make big differences in price. Even so, grading can be
studied, learned and applied with known and predictable results that ultimately rest on judgment, rather than
"feeling."
Like any science, language, sport, or field of study, it is best to break grading down to its basic components,
and master them one at a time. Learning how to grade coins is much the same as learning how to speak
English; not try to learn it all at once, but through experience and study.
Key Factors Infl uenci ng The Coi n s Grade?
The essence of grading a coin (once you have determined it is uncirculated or proof) can be broken down into four
distinct factors:
1. Surface Preservati on - This includes the presence of bag marks, hairlines from cleaning or mishandling,
and other imperfections of planchet, whether mint caused or man made. An analysis of surface preservation
attempts to weigh the visual impact of these imperfections based on their degree of severity and their
location on the coin.
2. Strike - Refers to the sharpness and completeness of detail, with the normal characteristics of that particular
type, date and mint mark (i.e. issue) taken into account.
3. Lustre - This encompasses the brilliance, cartwheel, sheen and contrast of the coin, again taking the normal
characteristics of the particular issue into account. Minor (non-hairline producing) cleaning, retoning, friction,
etc., are evaluated under this category.
4. Eye-Appeal - That certain aesthetic appeal that results from the attractiveness of the toning (if any), the
balance of the coin, and the effect of the combination of all of the coin's qualities.


Who Are The Grading Compani es?
1. PCGS - The Professional Coin Grading Service began serving the coin-buying public on February 3, 1986.
The firm is responsible for dramatic improvements throughout the rare coin industry which have forever
changed the way rare coins are bought and sold. In addition to standardized grading. PCGS offered a cash-
backed grading guarantee, problem-free coins, safe long-term storage, and sight-unseen trading. Together,
these elements have created unprecedented public support for the rare coin industry. Since 1986, PCGS
has graded over 9 million coins with a cumulative declared value of over 16 billion dollars. (www.pcgs.com)
2. NGC - NGC was founded in 1987, hundreds of thousands of coins are submitted to NGC each year by
collectors and dealers who have confidence in our ability and integrity as a third-party grading service. Their
grading process involves numerous steps within several specialized departments. Each step is performed
with the goal of accurately and safely grading and then sonically sealing coins in NGC holders.
(www.ngccoin.com)
Understandi ng The Shel don Gradi ng Scale
In 1948, a well-known numismatist by the name of Dr. William Sheldon attempted to standardize coin grading by
proposing what is now known as the Sheldon Scale. His scale, which runs from one to 70, was originally devised
specifically for large cents, but it is now applied to all series. The Sheldon Scale was a vast improvement over grades
such as "good" and "fine".

MS70
MS69
MS68
MS67
MS66
MS65
MS64
MS63
MS62
MS61
UNCIRCULATED MS60
AU58
AU55
ABOUT UNCIRCULATED AU50
CHOICE EXTREMELY FINE XF45
XF40
VF35
VF30
VF25
VERY FINE VF20
FINE - VERY FINE F15
FINE F12
VERY GOOD VG8
GOOD G4
ABOUT GOOD G3
POOR 1
EXTREMELY FINE
CHOICE VERY FINE
THE SHELDON GRADING SCALE
PERFECT UNCIRCULATED
SUPER GEM UNCIRCULATED
GEM UNCIRCULATED
CHOICE UNCIRCULATED
CHOICE ABOUT UNCIRCULATED

The Shel don Scale Expl ai ned In Detail
1. Good (G) - Coin will be heavily worn, but the main design and legend will be visible. Lettering may be worn
smooth. May be dull or faded areas.
2. Very Good (VG) - Still well worn but more of the rim will be evident. Design and legend will be clear but
worn flat. Lacks specific details.
3. Fi ne (F) - Medium to heavy wear but even overall. The design becomes clearer and details begin to appear.
Some letters within the design will be apparent.
4. Very Fi ne (VF) - A visibly nicer coin. High spots will show light, even wear. Various major features are
visible. Lettering is all readable.
5. Extra Fi ne (XF) or (EF)- Slight wear will show on the highest points of the main devices. Words are sharp
and easily readable. All details are clearly defined.
6. AU 50 - Slight traces of wear on the highest points of the coin; may be dull with some evidence of luster
under any toning.
7. AU 53 - J ust slightly better than an AU 50 with a little more luster visible. Eye appeal begins to make a
difference between the AU grades.
8. AU 55 - Nicer coin than an AU 50 with no major difficulties. More luster shines through the surfaces.
9. AU 58 - This is oftentimes called a slider as it will appear to many observers to be uncirculated. J ust the
faintest wear on the highest points of the coin. Luster should be quite evident, although some toning can be
apparent. Usually coins with poor eye appeal will not make the AU 58 grade.
10. MS 60 - Mint State indicates a coin that has no wear and is uncirculated. It may have numerous bagmarks
and/or be toned. MS 60 is the lowest quality of an uncirculated coin.
11. MS 61 - An uncirculated coin that is just slightly better than MS 60. However, no question that it is
uncirculated. Whereas, some may debate over the merits of a coin being MS60 because of the excessive
bagmarks, the MS61 should be more desirable.
12. MS 62 - This coin should be a much cleaner specimen than an MS 60, yet, just slightly better than an MS
61. There should be fewer bagmarks as the coin takes on more attractive features.
13. MS 63 - This is the grade that many collectors feel is the most collectible in numismatics. Prices are typically
reasonable compared to higher grades and the coin should have at least an average strike and eye appeal,
with minimal distracting marks.
14. MS 64 - This is the grade where prices in many series begin to increase dramatically. For this reason the
coin will begin to show fewer marks and the strike will be the strongest yet. No primary distractions that will
draw your eye. A near-gem coin with just a few tiny marks or weakness in strike to keep being better.
15. MS 65 - This is the gem category. Coin should be fully struck with eye appeal. Either brilliant or toned but
there should not be any unsightly marks or color that negates eye appeal. Any marks should be very minor
in appearance. Prices spread out even further.
16. MS 66 - A coin that just jumps out at you as being nicer than an MS 65. The main devices on either side
should have no more than very minor ticks and the fields should be cleaner than that of an MS 65.
17. MS 67 - A superior coin that has no major distractions to speak of. The fields should be near flawless with
just the slightest contact on the main device. This coin should emit a look of satisfaction from the viewer.
Prices increase further especially for coins with short supplies and strong demand.
18. MS 68 - A difficult grade to determine by most experts. When does a coin become MS 68 but is not quite
MS69 or 70? A very superior coin with maybe just a minor tick on either side keeping it from perfection.
19. MS 69 - This is a coin that should create a gasp when viewed. There should be no imperfections to the
naked eye. With a magnifying glass a minor mark or impediment may be visible.
20. MS 70 - A perfect coin with no imperfections seen with a magnifying glass. There should be no marks
whatsoever; the coin must look like it just left the Mint. Very unusual in early coins as the mint did not have
the quality they do today. Modern coins have been given this exalted grade although there is debate
whether coins can be perfect.

South Afri can Coi nage Timel i ne



Common Gradi ng Abbreviati ons & Termi nol ogy

Er a St ar t Year End Year Descr ipti on Ruler
1874 1890 Patterns Thomas Burger
1892 1902 First Year of Mintage Paul Kruger
1923 1936 King George 5th
1937 1960 King George 6th
REPUBLIC 1960 . Various
ZAR
UNION
NGC PCGS Common Descr i pti on Fur t her Not es
MS MS Mint state
PF PR Proof
UC DC Ultra Cameo / Deep Cameo
BN BN Brown
RB RB Red Brown
RD RD Red
PFUC PRDC Proof Ultra Cameo / Proof Deep Cameo
PFCA PRCA Proof Cameo
MSBN MSBN Mint State Brown
MSRB MSRB Mint State Red Brown
MSRD MSRD Mint State Red
PFBN PFBN Proof Brown
PFRB PFRB Proof Red Brown
PFRD PFRD Proof Red
DESIGNATION NAMING CONVENTION
NGC PCGS Common Descr i pti on Fur t her Not es
1/4 P 1/4 D Quarter Penny / Quarter Pence / Farthing
1/2 P 1/2 D Half Penny / Haypenny
PENNY 1D Penny
3P 3D Three Pence
6P 6D Six Pence
1S Shill Shilling
2S 2 Shil Two Shilling / Florin
2.5S 2 1/2 S Two & Half Shilling / Half Crown
5S 5 Shil Five Shilling / Crown Double Shaft & Single Shaft Varities
1/10KR 1/10 KR Tenth Krugerrand
1/4KR 1/4 KR Quarter Krugerrand
1/2KR 1/2 KR Half Krugerrand
1KR KRand Krugerrand
POND Pond Pond Double Shaft & Single Shaft Varities
1/2PND 1/2 Pd Half Pond
POUND 1 Pound
1/2PND 1/2 Half Pound
SOV Sov Sovereign
1/2SOV 1/2 Sov Half Sovereign
S1R Rand "S" Stands For Silver
G5R 5 Rand "G" Stands For Gold
DENOMINATION NAMING CONVENTION