Third Party Coin Verification
If you think about how a coin market works, at a minimum, you need a buyer and a seller of a coin, the two come together, with a meeting of the minds on the condition of the coin, the price, and the exchange of the coin for agreeable funds or tradable value to complete a transaction.
In reality, a particular buyer or seller may not be anywhere near the other. Furthermore, coordinating the evaluation of a coin’s condition by a third party would complicate matters even more.
Since the age of printing, advertising has been a way to bring together distant buyers and sellers. Sellers could advertise a coin, the grade, and the price. Buyers would request the coin, with a certain condition, within a certain price by letter or by phone. What if there were unscrupulous sellers offering counterfeit or altered coins for sale? What if the buyer interpreted “Almost Uncirculated” a little differently than a seller with lower standards? You may quickly realize an impartial third-party providing assessment of a coin’s condition was born of necessity.
Third-party grading companies will accept the shipment of your coin and your hard-earned money and evaluate the condition of the coin for you based on their standards. If the condition of the coin meets their minimum standards they will assign a grade from 1-70, encapsulate the coin in a slab of plastic that protects the coin, assign a number, add it to their database, and affix a label. There are a number of “upsells” a particular company may offer, but the whole point is that there needed to be a system of impartial third-party grading so that a coin could be sold sight unseen, and the buyer would get the coin that matched their desired condition.