Coin grading is the process of evaluating a coin’s condition and assigning it a grade based on a standardized scale. This is crucial for determining a coin’s value, authenticity, and marketability.
Most coins are graded on the Sheldon Scale, a 70-point system developed in 1948 by Dr. William Sheldon. The scale ranges from 1 (Poor – P) to 70 (Perfect Mint State – MS).
- Circulation Wear: This refers to signs of wear from everyday use or circulation. Coins lose sharpness and detail as they circulate, [notes GOVMINT] and the higher points of a coin’s design are the first to show signs of abrasion.
- Luster: The brilliance and shine of the coin’s surface. Original mint luster is a key indicator of a coin’s condition, with higher luster typically equating to a higher grade.
- Strike: The sharpness and clarity of the coin’s design, influenced by the minting process. A decisive strike with sharp details is preferable, while a weak strike can result in lightly impressed details.
- Surface Preservation: This includes evaluating the presence of any marks, scratches, dents, or other imperfections on the coin’s surface. Rim damage and nicks also impact the grade.
- Eye Appeal: A subjective assessment of the coin’s overall aesthetic charm and visual attractiveness.
- Color/Toning: Natural patina or discoloration on the surface caused by environmental factors. Toning can enhance the uniqueness of a coin, but uneven or yellow toning is considered undesirable.
Circulated coins
Circulated coins show signs of wear from everyday use.
- P-1 (Poor) to AG-3 (About Good): These grades represent coins with heavy to extreme wear, where key details like the date or lettering may be smooth or barely readable.
- G-4 to G-6 (Good) to F-12 to F-15 (Fine): Coins in this range show significant wear, but major designs are visible, with varying degrees of clarity and completeness in the lettering and design.
- VF-20 to VF-35 (Very Fine) to EF-40 to EF-45 (Extremely Fine): These grades indicate moderate to light wear, primarily on the high points of the design. Details and lettering are sharp and clear, with some original luster potentially remaining in protected areas.
- AU-50 to AU-58 (About Uncirculated): Coins with very slight wear, retaining full details and at least half of their original luster.
Uncirculated (mint state) coins
These coins show no evidence of circulation wear. Their grades are determined by factors like strike quality, luster, contact marks, and eye appeal.
- MS-60 to MS-62: Average uncirculated coins with noticeable flaws like bagmarks, a poor strike, or dull luster.
- MS-63 to MS-64 (Choice Uncirculated): Better-looking, above-average uncirculated coins with fewer marks. They may be brilliant or lightly toned with minimal contact marks.
- MS-65 to MS-69 (Gem Uncirculated): High-quality uncirculated coins with excellent eye appeal. They may have light toning and a few contact marks.
- MS-70 (Perfect Uncirculated): Flawless coins that appear perfect even under magnification, with no signs of wear, scratches, or handling. This grade is exceptionally rare for older coins.
Proof coins are specially produced for collectors, often with a mirror finish, and are graded on a separate PR-60 to PR-70 scale.
Services from companies like PCGS and NGC provide unbiased grading and encapsulation, enhancing marketability and providing assurance to buyers and sellers.
Understanding coin grading is essential for collectors and investors to make informed decisions.
What are the condition grades of coins?
This changed to the letter grading system beginning with the lowest grade – Basal State (also Poor (PO)), then continuing Fair (Fr), About or Almost Good (AG), Good (G), Very Good (VG), Fine (F), Very Fine (VF), Extremely Fine (EF), Almost or About Uncirculated (AU), Uncirculated (Unc) and up to Brilliant Uncirculated …
How to tell if a coin is in good condition?
Great question! Good. Coin will have a fully readable date. …
Very Good. Coin will have a fully defined rim and full legends with all the lettering and numerals distinct. …
Fine. Moderate wear will be evident. …
Very Fine. Approximately two-thirds of the coin’s overall design will be visible. …
Extra Fine. …
About Uncirculated.
What does MS 60 and MS 63 mean in coins?
Choice Uncirculated (MS-63) – A coin with some distracting contact marks or blemishes in prime focal areas. Luster may be impaired. Uncirculated (MS-60) – A coin that has no trace of wear, but which may show a number of contact marks, and whose surface may be spotted or lack some luster.