When the rare coin market was limited to a small number of numismatists trading with each other, three broad definitions were enough to determine grade: “Good” – a coin with most of the detail intact; “Fine” – a coin with clear detail and some luster on its surfaces; and “Uncirculated” – a coin which had never been in general circulation and therefore retained its Mint State condition.

This was a 50,000 ft view, so to speak, of a coins overall appearance. As coin collecting grew, collectors realized that some “fine” coins were finer than others. There very varying levels of fine, and even some uncirculated coins rose above the rest in detail, luster, and general appearance. So there needed to be even further distinction on of a coins quality. So terms such as “Very Fine” and “Extra Fine” began to emerge, as collectors sought to further define the condition of their coins and increase their value.

In 1948, Dr. William Sheldon, a renowned numismatist, developed the Sheldon Scale, assigning grades from 1 through 70 to coins on the theory that a coin graded at 70 would be worth 70 times as much as the same coin type being graded as a 1.

Although coin collectors agreed on the scale, they could not agree on the standard, and assigning a Sheldon Scale grade to any given coin was still a matter of subjective opinion. One dealer’s 60 was not the same as another dealers 60 grading. Now there are several professional coin grading services such as PCGS, which have very accurate system for grading coins and maintaining consistency in the grading process.

The majority of rare gold coins were minted in the United States. This is the 1913 Liberty Head nickel. One of the reasons this coin is so rare is the fact that there are only five that are still known to be in existence today. The most recent 1913 Liberty Head nickel was sold at auction for three million dollars! Aside from its rarity, the one auctioned has been owned by a millionaire in Texas, King Farouk of Egypt. Other listings of rare gold coins on earth include the 1907 and 1933 St. Gaudens Double Eagle.

While America already had coins in circulation by that time, the then President felt that a nation’s currency should stand for more than just a monetary value; it should stand as well for the pride in their country that is shared by its citizenry. That is why President Roosevelt commissioned St. Gaudens to redesign the coins of the United States. The 1907 Double Eagle has been referred to as one of the most beautiful and extraordinary works of art on any of our American coins. Featuring a relief on the front of Lady Liberty holding a torch in one hand and an olive branch in the other hand, with the U.S. Capitol in the background and on the back of a bald eagle flying over the sun, it truly is a masterpiece.

Since there were only a little over 12,000 of these coins ever made, their value has significantly increased. Today the 1907 St. Gaudens Double Eagle gold coin can easily bring in ten thousand dollars in circulated condition and almost half a million dollars for ones in well-preserved condition.You may not be in the position to purchase a 3-7 million dollar gold coin but if you are looking to hedge your bet against inflation or market fluctuations, owning rare gold coins has proven to be wise decision.