Brilliant Uncirculated and Uncirculated
Abbreviated to "BU," "Brilliant Uncirculated" is the highest grade. "Uncirculated" implies that the coin has never seen active use as legal tender. When inspected under a microscope, a BU coin will show no signs of wear at all. The delicate luster that is applied to new coins in the mint will be completely intact. It is also referred to as "Fleur du Coin," or "FDC." "Uncirculated" is abbreviated to "Unc" in price guides. Like a BU coin, a coin graded as "Unc" will look pristine under a microscope but there may be faint inconsistencies in the appearance of the luster caused by a reaction to poor packaging materials.
Almost Uncirculated and Extremely Fine
"Almost Uncirculated" or "AU" coins retain over half of their original luster and only show slight wear on places where the design is at its highest relief, for example, on an ear, brow or lock of hair on a portrait bust. Coins that are "Extremely Fine" or "XF" fall into two categories--ones that have lost either five percent of their original detail or ones that suffer from very light general rubbing.
Very Fine and Fine
On coins that are in "Very Fine" or "VF" condition, about 25 percent of the fine detail will have degraded. There may be the first signs of raggedness to the edges of some corners and numerals. With "Fine" or "F" examples, half of the original detail will be gone, there will be a noticeable loss of crispness in the edges of letters and numerals and the coin will seem generally dull to the eye.
Very Good, Good and About Good
Coins that fall into these bottom categories all show considerable wear but are separated into groups according to the state of their designs. Coins that are graded "Very Good" or "VG" retain only about a quarter of the original design elements. On "Good" or "G" coins, there is a clear outline of the original design but all the rest of the detail has been lost. On "About Good" or "AG" coins, the design is no more than a faint outline.