If you've recently inherited a relative's collection of old or rare coins, you may have already had a crash-course education on coin collecting and the proper storage methods for this type of currency. However, unless your relative had these coins professionally graded just prior to his or her passing away, you may be at a loss when it comes to putting a dollar value on the collection. For those with a bit of free time and the desire for a new hobby, grading and valuing these coins yourself can be a great way to learn more about your coin collection while giving you a better idea of the sale price(s) you may be able to expect. Read on to learn more about some of the tools and equipment you may need in order to get started in the coin grading business, as well as a few situations in which your inherited coin collection may be better suited to professional coin grading. 

What will you need in order to begin grading coins on your own? 

The study of numismatics -- or coin collecting -- hits its peak in the coin grading process, where coins are rated and assigned a value based on their rarity, condition, and other relevant factors ranging from prior ownership to age or minting city. 

Although you don't need an education in numismatics to be successful at grading coins, you will need some basic equipment, including a bright light (usually at least 75 to 100 watts), a magnifying glass that will allow you to look for tiny nicks or scratches on the coin's surface, and some soft cloths to place the coins on while you're not holding them. (Few things can be more frustrating than dropping and damaging an especially soft coin while attempting to examine it more closely!) You'll also want to purchase a few books on the coin grading process, including the most recent publication that lists values for some of the more commonly collected coins, like wheat pennies or buffalo nickels. Although the internet can be an invaluable resource for coin graders, having a physical log handy can help you make side-by-side comparisons with ease. 

When grading coins, you'll want to ensure you're in a well-lit room, free from glare and outside distractions. And while you'll almost always want to use your own light to examine the coins, there's no need to place it too close to the coin's surface -- having the light at or behind your head should suffice. Keeping your magnifying glass handy, but avoiding excessive use (which can lead you to begin seeing imperfections even where they don't exist) can help you achieve balance and fairness while grading your coins. 

What are some situations in which professional coin grading is worth the investment? 

In many cases, unless your coin collection is extensive and you truly enjoy the grading process, it can make more sense to take your coins (at least those you suspect are high-value) to a professional for this service. Otherwise, you may find yourself investing money and time into this hobby, only to find that the liquidated value of your entire coin collection is worth less than you spent to identify the value of each coin. 

Many coin collectors and others who provide this service will offer you a discount on the cost of professional grading as long as you agree to sell your coins through them for a slight commission. For those with busy lives or little interest in learning to grade coins, this can be a win-win—allowing you to determine the value of your coins before you decide whether or not you're interested in selling, then providing you with an expedited process that can ensure your coins are advertised to a wide audience of hobbyists and enthusiasts around the world.