What are the quality types of coins?

Coins intended as collector's items are divided into different quality types. First, it is determined whether a coin is a collector's or an investment coin. The characteristics of a coin determine whether it falls into the category of investment or collector coin.

Coins are distinguished by their design, quality, the content of silver or gold, and the mintage. The time in which a coin was produced and the country of origin also play a role in determining the quality type. The rarity of the coin also plays a role. Furthermore, coins are minted in different ways. All of this affects the quality type of a coin.

Different standards in coin quality

The terms used for the quality types of coins are: circulation quality, uncirculated, brilliant uncirculated, proof and prooflike. A coin of circulation quality is used by consumers daily to pay with. These coins go from hand to hand and are therefore subject to wear and damage.

Uncirculated coins (UNC) are coins that are minted for circulation but are not put into circulation. During the production process, these coins are collected in a metal container. As a result, they may sometimes have superficial damages.

Brilliant uncirculated (BU) coins are the first coins struck with a new coin die. As a result, they shine more.

Additionally, there are proof coins. These are coins of the highest quality. Various techniques have been applied to these coins to improve their quality. Think, for example, of the use of polished coin blanks and high-quality dies.

The last category is prooflike. Prooflike coins have a mirror-like background and sharp details, similar to proof coins. They are struck with polished dies. Although less exclusive than proof coins, they are popular among collectors due to their shine and affordability.

Collectors also use other terms. 'Prachtig' (Pr) refers to coins with hardly any wear due to a short circulation. 'Zeer fraai' (ZF) shows slight wear, while 'fraai' (Fr) has clear signs of use. Coins in the 'zeer goed' (Zg) category show considerable wear due to long use, and with 'goed' (G) the wear is greatest after a very long circulation.

Why quality is important for coins

The quality types of gold and silver coins mainly refer to the condition of the coin. The degree of wear and scratches, stains, and other imperfections are assessed. Among other things, based on this, coins are classified by quality type. The higher the quality, the rarer and more valuable the coin often is for collectors.

High-quality coins retain their value better and have greater growth potential. It is important that the coin is stored correctly and well protected.

Tips for recognizing coin quality

Have the coin quality determined by official institutions, but you can also make an estimate yourself. You may not be sure in which category your coin falls, but you will have an idea of the value. Pay attention to details. In higher-quality coins, small details such as hair strands, letters or relief patterns are clearly visible.

Further inspect the coin with a magnifying glass under good light, to check for scratches, stains, and wear spots. Also, dull spots and irregularities indicate wear. Do not forget to inspect the back of the coin. Also check the edges and raised parts of the coin, which get damaged more quickly.

The most important thing when recognizing coin quality is caution. Only touch coins by the edges and use gloves to avoid fingerprints or damage.

Would you like to know more about quality types? Then watch the video below.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.