Coins Grading
A coin’s value is determined largely by its grade. Following are the most commonly used coin grading terms:
 | Uncirculated (Unc.) or Mint State (MS) - No Wear on the coins. Mint state coins are graded on a numerical scale from 60 to 70, with 70 being the most perfect. You wonder why a coin can have any wear if it is not circulated. An uncirculated coin may have no trace of wear. But they can still vary in condition. For example, a coin can be bagged and shipped. Some mark will be left on the coin even it is not wear. Distinguishing the difference between these uncirculated grades is very hard even for the professionals. That's why a lot of times people only grade MS 60, MS-63, MS-65 and MS-67 instead of MS-60, MS-61, MS-62, and etc. It's almost important to tell the one-point difference. MS-67 is the nearest perfect coin. It has the faintest of bag marks only through a magnifying glass. Copper much have luster. MS-65 coins may have no significant bag marks. Copper may have toning. Very few coins qualify for that category. MS-65 are the most seekable coins by investors. MS-63, compared to MS-67 and MS-65, have some bag marks to be noticed but not too many. MS-60 coins have considerable scuffing at the mint before their release. They often have nicks and discoloration. |
 | Almost Uncirculated (AU) - Coins with some slight signs of wear AU coins come in AU-50, AU-55 and AU-58. As a novice, you probably won't be able to tell the difference between AU and Unc coins. The most important thing in grading an AU coin is to know is where the high points are on a particular coin so that you can look for the minimal wear there. Practice by taking a new coin from the bank, rub it back and forth on your mouse pad vigorously a few times, and see if you can see the wear. Hold the coin nearly sideways in a bright light so that the light reflects at a low angle off the coin. Look for a difference in how the light reflects from most of the coin versus the very highest points. If it doesn't reflect off of the high points the same way as it does from the rest of the coin, then you probably have an AU coin. Note that most AU-58 coins look much better than most MS-60 coins. One of the weird things about coins is that an ugly uncirculated coin often sells for more than a beautiful coin with barely perceptible wear. |
 | Extremely Fine (XF or EF) - Coins have extremely clear details and have wear significant enough to be seen by the unaided eye. There is often some of the mint luster left on the coin. XF coins come in XF-40 and XF-45. |
 | Very Fine (VF) - Coins with obvious signs of wear. All major features are clear. For example, on US coins with "Liberty" on a headband or shield, all letters must be clear. VF coins come in VF-20, VF-25, VF-30 and occasionally VF-35. Minor features such as some of the finer hair detail, feathers, etc. will be worn. Take a roll of quarters from the bank. Most of the coins from 1976-1983 or so will likely grade VF. VF coins are great start for coin collectors because they don't have any major problem and they show most of the details for a fraction of the cost of higher grade coins. Note that silver and copper coins wear faster than clad coins, so VF probably represents between 1-3 years of use. |
 | Fine (F) - Coins with moderate wear. Entire design is clear and about half of design details show for most types. Fine is labelled F-12 in the Sheldon scale. Your average 1965 quarter from circulation is Fine. A lot of the details are gone, but you can still see a good deal of the design. |
 | Very Good (VG) - Coins with heavy wear. All outlines are clear but most details are worn off. Very Good is VG-8 on the Sheldon scale. The entire design is weak, but some details show. The rim generally is full. A full rim means that you can see a line around the edge of the coin where it was raised up. |
 | Good (G) - Coins that are heavily worn off. Generally they are not considered. The design usually shows little or no details. Some of the rim may be worn off. You must be able to read the date and mint mark. |
 | About Good (AG) and fair (FR) - Coins are only worth collecting when they are very rare. The rim will be worn down and some outline of the design are gone. Often, only parts of the last date will be visible. Many people collect fair condition coins, especially the rarer dates and types. Dateless buffalo nickels, for example, are still worth about a dime. Some of the earlier type coins may be worth $50 or more in fair condition. |