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How to Determine the Grade of a Coin

The grading of U.S. coins can be a very arduous process. Prior to creation of the "Sheldon Scale" there was a "loose" system (often called "adjectival" or "descriptive") for determining the condition and value of a coin. Dr. William Sheldon (1898 to 1977) was an American psychologist who developed theories regarding human physiology. However, he is very well known for his work in the numismatic field and the assignment of grades for coins. This is the current standard used by third party services such as PCGS and NGC. There are four primary factors which affect the grade of a coin:

1. Strike (the stamping of the design on to a planchet or blank)
2. Luster (often described as "prooflike," "satiny" or "frosty")
3. Surface Features (marks, scratches and "nicks" are critical)
4. Coloration or Toning (this relates closely to the "eye appeal")

The highest possible grade is 70 in Mint State or Proof varieties. From there, the drop can be very steep--all the way to "Poor!"

In this article we will go over the various coin grades.

Things You'll Need

A magnifying glass
A good source of light
A pair of cotton gloves (optional)
A copy of the "Official Red Book" by R.S. Yeoman

Instructions

- 1
  THE LOWER GRADES (Severely worn or damaged coins)
  
  P-1 (Poor)
  The coin is badly damaged or worn smooth. The denomination (type) and date are almost impossible to discern. In effect, the coin is almost worthless, unless it is a very rare date or is made of gold.
  
  FR-2 (Fair)
  The type and date are barely discernable. The coin is damaged or extremely worn to a flat surface.
  
  AG-3 (About Good)
  Here, the type and date are readable. However, some digits of the date may be worn down. Lettering is faint, at best. Poor and Fair coins reperesent the bottom strata of the order.
- 2
  MARGINAL COINS (Adequate or "good" condition)
  
  G-4 (Good)
  The coin is still heavily worn, however, the features can be seen as outlines. The date can be distiguished more easily.
  
  G-6 (Good+)
  Considerable wear is still evident. The date and type are very readable. Features and details begin to improve, albeit slowly at this level.
  
  VG-8 (Very Good)
  The rim of the coin is partially outlined. Legends are readable. There is no problem with reading the date.
- 3
  MIDDLE GRADES (Circulated coins with clear dates)
  
  F-12 (Fine, lower category)
  A sharper rim with clear devices and dates.
  
  VF-20 (Very Fine)
  The coin is evenly worn and the legends are easily determined. The date is sharper and the rim is very defined.
  
  VF-30 (Very Fine+)
  The wear is minimal; detail is much sharper. We are now climbing the ladder to respectability.
- 4
  UPPER MIDDLE GRADES (Minimal wear with sharp dates and devices)
  
  EF-40 (Extremely Fine)
  The coin has sharp legends, nice clean dates and high quality rims. There may be some wear on the high points. This is a decent-looking coin!
  
  XF-45 (Choice Extremely Fine)
  A step up from the previous grade. This coin has many nice features, including good "eye appeal."
- 5
  BORDERLINE UNCIRCULATED (A "new" appearance with sharp features)
  
  AU-50 (Almost Uncirculated) Dates, legends, mint marks and features are nice and clear. Some of the original mint "luster" is there.
  
  AU-55 (Good Uncirculated) Wear is very minimal. High points are easily distinguished. Lots of mint luster and eye appeal. Now we are getting into "the right stuff!"
  
  AU-58 (Choice Uncirculated) This coin may have been stored for years and barely circulated. Very few marks. Outstanding eye appeal. To the untrained eye, this coin appears to be new.
- 6
  MINT STATE (Virtually no wear with almost full original luster)
  We have reached the upper levels.
  
  MS-60 (Uncirculated Mint State)
  The coin has plenty of sharp details and no wear. However, it may also have bag marks or toning issues.
  
  MS-61, 62, 63, 64 (Mint State)
  Coins in this category can be arbitrarily graded on the basis of blemishes, marks or minor discolorations. There is no trace of wear and imperfections are limited.
  
  It should be noted, however, that the "64" grade is far superior to the "61" or "62" grades, as there will be less marks, blemishes or nicks.
  
  MS-65 to MS-70 (Mint State)
  The coins are in the upper echelon. The actual grade will depend on the presence of hairlines, contact marks, quality of luster and eye appeal. MS-70 is a flawless, perfect grade for a non-proof coin.
- 7
  PROOF COINS (PF 68, PF 69, PF 70)
  
  A Proof coin is specially manufactured with special dies and planchets and can be distinguished by its mirrorlike surface. There are a variety of Proof issues including Matte Proofs, Cameo Proofs and Frosted Proofs. Most of the modern Proof coins are struck at the San Francisco and West Point facilities. They are also packaged in sealed acrylic holders.

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