Gold has been considered a valuable asset for centuries, and many investors choose to invest in gold bullion and gold coins to protect their wealth. However, not all gold is created equal. Gold bullion and gold coins can vary in quality and purity, and it’s important for investors to understand how these assets are graded and certified. Below, the precious metals experts from First National Bullion, the specialists in gold bullion and gold coins San Diego collectors trust for exceptional service and unparalleled industry knowledge, discuss the process of grading and certifying gold bullion and gold coins.

Grading Gold Bullion

Gold bullion is a popular choice for those who want to invest in physical gold. It’s important to note that not all gold bullion is of the same quality, and the value of gold bullion can vary based on factors such as purity, weight, and overall condition. To determine the quality and value of gold bullion, it’s essential to have it graded by a highly regarded grading agency.

The most widely recognized grading agencies for gold bullion are Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). Investors and collectors around the world trust these organizations for their accurate and consistent grading practices.

When grading gold bullion, PCGS and NGC consider several factors, including weight, purity, and overall condition. The weight of the bullion is checked using precision scales to ensure it matches the weight specified on the item. Purity is determined by checking the gold content through a process called assaying, which can accurately determine the percentage of gold in the item. Finally, the condition of the item is assessed, which takes into account any scratches, blemishes, or other defects.

Once the grading process is complete, the gold bullion is given a grade on a scale of 1–70, with 70 being the highest grade possible. This grade is then added to a certificate of authenticity that includes a description of the bullion along with its weight, purity, and grade.

Certifying Gold Coins

Gold coins are another popular way to invest in gold, and they can also vary in quality and value. To ensure the value of a gold coin is accurately represented, it’s important to have it certified by a reputable grading agency.

PCGS and NGC are also the most widely accepted grading agencies for gold coins. When grading gold coins, these organizations take into account several factors, including condition, rarity, and historical significance.

The condition of the coin is assessed by examining its surface for any scratches, wear, or other imperfections. The rarity of the coin is determined by its mintage, which is the number of coins produced in a specific year or at a specific mint. The historical significance of the coin is also considered, which takes into account any unique or significant events associated with the coin, such as a commemorative design or a historic figure featured on the coin.

Once the grading process is complete, the gold coin is given a grade on the same scale as the one for gold bullion, with 70 being the highest possible grade. The coin is then sealed in a holder that includes a label with the coin’s grade, description, and other important information.

Benefits of Grading & Certifying Gold

Grading and certifying gold bullion and gold coins can provide several benefits to investors. For one, it ensures the value of the gold is accurately represented, which is important when buying or selling gold. Graded and certified gold is also easier to sell because potential buyers can trust that the value of the gold has been correctly assessed.

Additionally, graded and certified gold can be easier to insure. Many insurance companies require a certificate of authenticity before insuring gold, and graded and certified gold meets this requirement.

When they’re looking for the best place to buy gold, San Diego collectors turn to the experienced professional at First National Bullion. We buy and sell only the highest-quality precious metals, including silver, platinum, gold, and palladium. San Diego collectors who are looking for trustworthy dealers and high-quality service should give us a call at (858) 304-7580 to speak with one of our precious metals experts. 

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.