Coin Grading Guide

What is Coin Grading?

Coin grading is the process of determining a coin's condition and assigning it a grade on a standardized scale. The grade considers wear, luster, strike quality, and overall eye appeal. Professional graders use the Sheldon Scale, ranging from 1 (identifiable date and type only) to 70 (perfect).

Grading is both an art and a science. While there are objective criteria (amount of wear, specific details visible), experienced eyes also factor in overall appearance, strike quality, and eye appeal. This is why professional grading services exist—consistent, expert opinions provide confidence to buyers and sellers.

The Sheldon Grading Scale

Dr. William Sheldon created this 70-point scale in 1949. Originally designed for Large Cents, it's now the universal standard for U.S. coins.

Circulated Grades (1-58)

Poor (P-1) and Fair (FR-2)

• P-1: Barely identifiable, major features worn smooth, date barely readable
• FR-2: Heavily worn but complete features visible, major design elements identifiable
• Collectibility: Rarely collected except for extreme rarities
• Value impact: Minimal value unless coin is very rare

About Good (AG-3)

• Very heavily worn but all major features outlined
• Date complete and readable
• Rims may be worn into design elements
• Legends readable but may be weak in spots

Good (G-4, G-6)

• Heavily worn with all major design elements visible but flat
• Date, mintmark, and legends clear
• No detail in hair, leaves, or other fine features
• Full rims usually present
• Collectibility: Acceptable for very rare coins or budget type sets

Very Good (VG-8, VG-10)

• Well worn but major details visible
• At least 3 letters in LIBERTY visible (on appropriate designs)
• Some detail shows in hair, feathers, leaves
• Legends and date sharp
• Collectibility: Common entry-level grade for scarce coins

Fine (F-12, F-15)

• Moderate to considerable wear, but all major features sharp
• LIBERTY complete (on appropriate designs)
• About half of detail visible in hair, feathers, leaves
• All legends and dates bold
• Collectibility: Very popular grade—affordable with decent detail

Very Fine (VF-20, VF-25, VF-30, VF-35)

• Light to moderate wear, most details visible
• All major features sharp including LIBERTY
• About 75% of fine details visible
• High points show flatness but retain detail
• Collectibility: Sweet spot for many collectors—detail at reasonable price

Extremely Fine (EF-40, EF-45) / About Uncirculated (AU-50, AU-53, AU-55, AU-58)

• EF (XF): Light wear on highest points, nearly all details sharp
• AU: Slight wear on highest points, most mint luster remaining
• Very slight flattening on high points only
• AU-58 shows minimal wear, possibly only on a small high point
• Collectibility: Very popular—excellent detail with some affordability vs. Mint State

Uncirculated/Mint State Grades (MS-60 to MS-70)

Understanding Mint State

Mint State (MS) coins show no wear from circulation. However, they can have bag marks, contact marks, weak strikes, or poor luster from the minting process or bag storage. The MS grade reflects these as-made characteristics.

MS-60 to MS-62

• No wear but numerous contact marks
• May have poor luster or weak strike
• Below average eye appeal for Mint State
• MS-60: Very marked
• MS-61: Heavily marked
• MS-62: Moderately marked

MS-63

• No wear, moderate number of contact marks
• May have a few scattered marks in prime focal areas
• Average strike and luster
• Average eye appeal for Mint State
• Collectibility: Entry-level uncirculated, popular grade

MS-64

• No wear, few contact marks
• Minor marks may be in prime focal areas
• Good strike and luster
• Above average eye appeal
• Collectibility: Very popular—nice appearance without extreme premium

MS-65

• No wear, minor contact marks only
• No marks in prime focal areas
• Excellent strike and luster
• Excellent eye appeal
• Collectibility: Gem quality, significant premiums begin here

MS-66

• No wear, very few tiny marks
• Exceptional strike and luster
• Outstanding eye appeal
• Collectibility: Premium gem, much scarcer than MS-65

MS-67 and Higher

• MS-67: Near perfect, minimal imperfections under magnification
• MS-68: Virtually perfect, extremely minor imperfections
• MS-69: Nearly flawless, possibly one minute imperfection
• MS-70: Perfect coin—no imperfections even under 5x magnification
• Collectibility: Rare and expensive, condition rarities
• Note: MS-70 is extremely rare for older coins, more common for modern issues

Proof Grades (PF-60 to PF-70 or PR-60 to PR-70)

Proof coins are specially made for collectors with polished dies and planchets, struck multiple times. They have mirror-like fields and frosted devices. Proofs use the same 1-70 scale but designated PF or PR.

• PF-60 to PF-62: Impaired proofs with numerous marks
• PF-63 to PF-64: Average to above average proof condition
• PF-65 to PF-67: Gem to premium gem proofs
• PF-68 to PF-70: Superb to perfect proofs

Additional Grading Designations

Color Designations (for Copper Coins)

• RD (Red): 95%+ original red-orange color, highest premium
• RB (Red-Brown): 5-95% red, mixture of red and brown toning
• BN (Brown): Less than 5% red, mostly brown patina

Example: MS-65 RD is worth significantly more than MS-65 BN for the same coin.

Strike Designations

• FB (Full Bands): Mercury dimes with complete horizontal bands on fasces
• FH (Full Head): Standing Liberty quarters with complete head details
• FS (Full Steps): Jefferson nickels with complete steps on Monticello
• FBL (Full Bell Lines): Franklin half dollars with complete bell lines

These designations indicate exceptional strikes and command premiums.

Special Designations

• CAC (Certified Acceptance Corporation): Green sticker = solid for grade or better; Gold sticker = undergraded, worthy of upgrade
• Star (★): Exceptional eye appeal for the grade
• Plus (+): Top-end for the grade, nearly the next grade up
• DCAM (Deep Cameo): Proofs with deep contrast between fields and devices
• UCAM (Ultra Cameo): Similar to DCAM (PCGS terminology)
• PL (Prooflike): Business strikes with mirror-like fields
• DMPL (Deep Mirror Prooflike): Extremely reflective business strikes

Factors in Grading

1. Wear (Most Important for Circulated Coins)

• Amount of detail remaining on high points
• Specific grading points vary by coin type
• Look at hair details, cheek, leaf veins, eagle feathers, etc.
• Even slight wear disqualifies a coin from Mint State

2. Luster

• Original mint surface texture
• Reflects how light interacts with metal's surface
• Can range from blazing to subdued
• Different for different metals and eras
• Cleaning destroys original luster permanently

3. Strike

• How completely the design was impressed
• Full strikes show all intended details
• Weak strikes show softness on certain features
• Strike quality varies by mint, year, and denomination
• Some dates are notoriously weak (e.g., 1926-D Buffalo Nickels)

4. Contact Marks and Bag Marks

• Small nicks, dings, and scrapes from other coins
• Occur during minting, bagging, and storage—not circulation
• Size, number, and location all matter
• Marks in focal areas (face, open fields) more significant
• Marks on edges or reverse matter less (usually)

5. Eye Appeal

• Overall attractiveness
• Combines all factors plus toning, color, and intangibles
• Two coins of same technical grade can have very different appeal
• Can justify premium prices or CAC stickers

6. Surface Preservation

• Lack of corrosion, pitting, or environmental damage
• Original surfaces vs. cleaned, dipped, or artificially toned
• Carbon spots on copper coins
• Verdigris (green corrosion) on copper

Professional Grading Services

The Major Services

PCGS (Professional Coin Grading Service)

• Founded 1986, considered the gold standard by many
• Blue holders (older) and TrueView labels (newer)
• Strong reputation, extensive price guides and population reports
• Generally commands highest prices in marketplace
• Offers guarantee and will buy coins back at certain levels

NGC (Numismatic Guaranty Company)

• Founded 1987, also highly respected
• Uses brown/tan holders
• Very consistent grading standards
• Often preferred for modern coins and world coins
• Competitive with PCGS in marketplace acceptance

ANACS (American Numismatic Association Certification Service)

• Oldest service (1972), now independently owned
• White holders with gold borders
• More affordable than PCGS/NGC
• Good for varieties and authentications
• Generally accepted but commands lower premiums than PCGS/NGC

ICG (Independent Coin Grading)

• Founded 1998
• Lower fees, faster turnaround
• Less market acceptance than top-tier services
• Use caution—grading may be looser

Benefits of Professional Grading

• Expert opinion: Consistent, experienced graders
• Authentication: Catches counterfeits and alterations
• Protection: Tamper-evident, sealed holders
• Marketability: Easier to buy and sell
• Insurance: Clear documentation of grade and value
• Confidence: Both buyers and sellers know what they're getting

When to Get Coins Graded

• Value threshold: Generally worth it for coins valued at $100+
• Key dates: Rare coins benefit from authentication
• High grades: MS-65+ where one grade point matters significantly
• Selling: Graded coins bring higher prices and sell faster
• Insurance: Documentation for valuable collections

Grading Costs

• Economy/bulk: $15-25 per coin, slower service
• Standard: $30-50 per coin
• Express: $75-150+ per coin, faster turnaround
• Additional costs: Return shipping, insurance
• Modern coins: Special tiers available for recent issues
• Membership: Services offer memberships with discounts

Learning to Grade Coins Yourself

Essential Tools

• Magnification: 5x-10x jeweler's loupe or magnifying glass
• Good lighting: Bright, full-spectrum light source
• Reference books: ANA Grading Standards, Photograde
• Practice coins: Study graded examples
• Comparison: Look at certified coins at shows and shops

Learning Process

1. Study grading standards: Learn what to look for at each grade level
2. Examine certified coins: Compare your assessments to professional grades
3. Focus on one series: Different coin types grade differently
4. Join communities: Forums and clubs provide feedback
5. Attend shows: See thousands of coins, ask dealers questions
6. Practice conservatively: When in doubt, grade lower

Common Grading Mistakes

• Overgrading: Wishful thinking—everyone wants their coin to be better
• Confusing luster with wear: Dull luster doesn't mean wear
• Ignoring small details: Tiny marks in focal areas matter
• Not accounting for weak strikes: Missing details from strike, not wear
• Being fooled by cleaning: Cleaned coins can look nice but aren't
• Market grading: What you want vs. what standards dictate

Conservative Grading Philosophy

When grading your own coins, err on the conservative side:

• Professional graders are strict and consistent
• Your MS-65 might grade MS-63 or MS-64 officially
• Better to be pleasantly surprised than disappointed
• Conservative estimates protect you when buying and selling
• Build credibility by being realistic about condition

Understanding Grading Variations

Gradeflation

Over time, some argue grading standards have loosened slightly (gradeflation). A coin graded MS-65 in 1990 might grade MS-64 today, or vice versa. This is controversial and varies by service and coin type.

Series-Specific Grading

Different series have different standards and expectations:

• Early copper: Graded more leniently due to striking quality and age
• Morgan dollars: Very strict standards, minor marks matter
• Modern coins: Expected to be nearly perfect; MS-69 and MS-70 more common
• Commemoratives: Often found in high grades due to careful handling

Resubmission and Grading Games

• Some collectors resubmit coins hoping for upgrades (grading games)
• Borderline coins might grade differently on resubmission
• Costs can exceed benefits unless coin is expensive
• Cracking out (removing from slab) and crossing over (changing services) both involve risk

Value Impact of Grading

Grading Premiums

Grade dramatically affects value. Examples of how price changes with grade (varies by coin):

• VF-20: $100
• EF-40: $150 (50% more)
• AU-58: $300 (200% more than VF)
• MS-63: $600 (500% more than VF)
• MS-65: $2,000 (1900% more than VF)
• MS-67: $15,000+ (14,900% more than VF)

One grade point can mean 25-100%+ value difference for high-end coins.

Sweet Spots

Smart collectors often target "sweet spot" grades:

• VF-30 to EF-45: Good detail, reasonable prices
• AU-58: Nearly uncirculated, much less than MS-63
• MS-63 to MS-64: Uncirculated without extreme premiums
• Avoid: Top pops (highest graded) unless budget allows—huge premiums for minimal improvement

Condition Rarity

Some common coins become rare in high grades:

• Millions minted but few survived in MS-65+
• Early coins that circulated heavily
• Series with poor striking or soft metal
• Population reports show true rarity in specific grades