Coin grading is the manual process of determining the grade or physical condition of a coin. Grading a coin is one of the key factors in determining its value. A coin’s grade is determined by five criteria: strike, preservation, luster, color, and attractiveness. The most commonly used coin grading scale ranges from 1-70. This system was first used in the United States to grade coins in the late 1940’s.
What is the coin grading scale?
A coin grade measures a coin’s appearance. The scale of grading coins was created by numismatist Dr. William Sheldon in 1949. IT was merged with descriptive terms used earlier and later adopted by the American Numismatic Association. The coin grading scale is a 0-70 point grading scale that has been summarized below. These are the grades and descriptions most often used in the U.S. coin grading scale.
What coin are coin grades and what do they mean?
Whether you’re new to coin collecting or a seasoned collector, it’s always helpful to know basic coin grades and what they mean. Each coin is normally grade on a scale that ranges from 1-70. Below are the most common coin grades and their abbreviations:
(PO-1) Poor – This is the lowest quality coin grade. The design is nearly unidentifiable and will be likely damaged. You will only be able to tell what kind of coin it is but most details will be damaged. Most coins that receive this grade will be worn smooth and in very poor shape. This grade of coin is likely to have deep gouges, scratches or even holes.
(FR-2) Fair – Worn almost smooth but lacking the damage a coin graded Poor usually has. To receive this grade, there must be enough detail to identify the coins date and type. The entire coin is worn flat with only traces of lettering still available.
(AG-03) About Good – The rims on the coin may mostly be full but may be flat or slightly worn. Very worn such that inscriptions merge into the rims in places; major details are mostly gone.
(G-4) Good- Rims mostly full but may be flat or slightly worn into inner letters in spots.
(G-6) Good- Rims and lettering full but design now flat and visible as an outlined form.
(VG-8) Very Good- Most of central detail is worn flat. Inner lettering may still be visible. Rims of coin are full.
(VG-10) Very Good- Considerable wear has flattened most of the details. Most lettering will remain readable.
(F-12) Fine- About half of detail now worn flat. Very worn, but wear is even, and overall design and lettering remains visible.
(F-15) Fine- Less than half of inner fine detail worn flat. All lettering remains sharp and clear.
(VF-20) Very Fine- Moderately wear with some finer details still evident. All letters of LIBERTY or the motto are readable. The rim’s on both sides of the coin are full and separated from the field.
(VF-25) Very Fine- Entire surface shows wear but major design elements are clear.
(VF-35) Very Fine- Light wear is seen over the entire surface of the coin. All the major details are still very visible.
(XF-40) Extremely Fine- Lightly worn. Finer detail is bold and clear but may show some signs of light wear. All design elements still show but high points on the portrait will likely be worn flat. Little to no original coin luster remains.
(XF-45) Extremely Fine- High points of design show light wear. A small bit of luster may still be visible in low hidden areas.
(AU-50) About Uncirculated- Slight traces of wear on high points of the coin’s design. The design still shows very light wear. A bit of luster may still be visible in protected areas. The coin may have contact marks from light circulation.
(AU-53) About Uncirculated- Slight flatness with loss of luster visible on high raised points of the coin’s design. 75% luster remains.
(AU-55) About Uncirculated- Full Detail with light friction on high points of the design. Slight hint of wear marks, no contact marks. 85% luster remains.
(AU-58) About Uncirculated- Full Detail with only slight friction and markings on the highest points. Almost full luster remains.
(MS-60) Mint State- No wear is apparent on the coin. Maybe be struck with hairlines.
(MS-61) Mint State- No wear with an average to weak strike. Several marks or hairlines are allowed in this grade.
(MS-62) Mint State- No wear with an average to below average strike. Several marks or hairlines.
(MS-63) Mint State- The strike is average to weak with few hairlines.
(MS-64) Mint State- Average to good strike with few marks or hairlines. No marks are severe.
(MS-65) Mint State- Above average strike with minor marks or hairlines. Mostly off center and hidden areas.
(MS-66) Mint State- Well struck with few marks or hairlines.
(MS-67) Mint State- Very Well struck with few marks or hairlines. Coin has minor imperfections that are unseen without using magnification.
(MS-68) Mint State- Perfect luster, no visible contact marks to the naked eye.
(MS-69) Mint State- Perfect luster, sharp and attractive deep strike. A perfect coin except for tiny flaws that are only visible under magnification.
(MS-70) Mint State- The perfect coin. There are no microscopic flaws visible using magnification. The strike is sharp, and the coin is perfectly centered on a perfect planchet. Bright, full, original luster and outstanding eye appeal. There is no higher grade.
How do I grade coins by myself?
To grade a coin is to essentially figure out the coins state of circulation as well as it’s value. If you would like to grade coins on your own you can. You are able to get a close guess of a coin’s grade based off pictures of the same coin. If you search online there are several apps and libraries of photos online to compare your coin. Find which mint state your coin looks most like and you’re likely able to assume the grade is close. When selling coins, it would be best to take the coin to a professional as some coin grades require magnification and special tools to grade them. Grading coins on your own would be more of just a fun way to get a guess of the value of your coin. If you would like to find out more regarding professional coin grading you can check out PCGS:
What do coin grading companies like this do with my coin?
When your coin is professionally graded, the final grade is noted. The coin if opted will be placed in a sonically sealed plastic holder case known as a “slab”. The sonic sealing of the plastic is done in a clean environment. The process removes air and debris from the holder so that the coin will no longer age and oxidize in normal exposed conditions. It is essentially freezing the coin in time in it’s current condition. This will give the graded coin protection to stay high quality for years to come. The slab is marked inside with a specific tag that likely shows a serial number, the coin type, the coin’s grade and the logo and information for the company that graded the coin. This shows that the coin has been graded, authenticated and taken into inventory of the grader.
How much does it cost to grade a coin?
Coin grading services will professionally grade coins for tiered fees. The more a coin is worth, the higher the grading cost will be. The fees that are associated with submitting to most coin companies for authentication and grading is based many things such as:
- The type of coin.
- Declared value per coin
- Estimated turn around time on grade
Fees on coins will be listed on a per coin basis. In addition to most grading services you will be charged shipping and handling charges. It would also be wise to include the cost of insurance if you are sending very valuable coins through the mail.
Should I grade all of my coins?
Most collectors would suggest not to grade coins that have low value. To grade low value coins would essentially be throwing away money. There are some cases where spending the money to have a slabbed coin that is a novelty to your collection or just something you’d like to keep nice. People also grade random coins as filler to meet order minimum quantities for grading.
What did you learn?
Coin grading is a lengthy process that goes through many checks to make sure each coin is graded to the best of the grader’s ability. Sometimes multiple graders will submit their feedback on a single coin to ensure the grade is represented as accurately as possible. Just a single point in grade could be potentially hundreds to thousands of dollars in value so grading is extremely important. Coin grading is also important because it helps keep coins in good condition to let future generations enjoy coins from the past. It is a staple of the numismatist community as a whole as well as to coin collectors all over the world.