How to Know if a Coin Is Uncirculated

Establish whether a coin is in uncirculated condition by scrutinizing it closely with a jeweler's loupe. When a coin leaves the mint, it has what is known as a "mint luster," a satin-like bloom that disintegrates easily under handling. If this luster is intact, barring one or two very minor blemishes, then you can grade the coin as uncirculated, or even bright uncirculated if the luster is pristine.

Examine the coin in the same way as in Step 1 to assess whether a coin is uncirculated in the other definition of the term. If a vendor is trying to sell you an item of standard currency that he claims has never entered general circulation, quiz him about the provenance. Did he buy the coin directly from a government mint? If so, does he have a receipt or documentation? Does the coin come with any packaging? The U.S. Mint, for example, issues presentation packs of circulating coins, as well as selling low denomination coins in sealed rolls. If there is no supporting documentation or packaging, then the coin is probably just a very good example that has been pulled from circulation shortly after being issued, rather than being a genuine uncirculated piece.

Follow the same steps with an uncirculated proof coin; that is, a coin only intended to be sold to collectors. Once again, there should be abundant documentation and packaging. In addition, modern proof coins often have a distinctive appearance -- a special frosted luster and deep, mirror-like fields. Even to the untrained eye, an uncirculated proof coin with these attributes will be easily distinguishable both from examples of uncirculated standard currency and from the normal run of circulated coins.