Information on How Coins are Graded

A coin’s condition is an important factor in coin grading. There are actually three factors that determine a coin’s value and these are the coin’s rarity, demand for the coin and its condition. Generally, coins graded highly are considered valuable coins. But then, this isn’t always the case, so coin collectors came up with a system to describe the overall condition of a coin.

Certain characteristics influence the grade of a coin. For instance, the condition of the coin’s surface, luster, strike and eye appeal factor in the grading of a coin. If a coin is lacking of any of the above mentioned characteristics, the coin’s grade (and value) decreases. You’d need to have a trained eye in order to spot subtle differences in the coin’s quality. Expert coin graders do give slightly differing grades for the same coin.

Although accurately and consistently grading coins requires talent and experience, even novice collectors can learn to approximate the grades of coins using a few simple guidelines. In general, coins receive a grade between 0 and 70, a point system the American Numismatic Association developed.

“Uncirculated” is the highest grade that a coin can have. This grade indicates that a coin is in mint condition. A coin in mint condition has a great between 60 and 70. An uncirculated or proof coin given a grade of 60 is a coin that shows no signs of wear, but shows contact marks, has a spotted surface or lacks luster. On the other hand, an uncirculated coin given a grade of 70 is a coin that is in perfect condition. Such a coin is brand new, does not show any signs of wear or scratches, or display any evidence that it has been touched or come into contact with other coins. Proof coins are considered high quality grade coins, but in technical terms, “proof” refers to the method that was used to create the coins, and it does not indicate the condition of a coin.

A grade of “About Uncirculated” (AU-55) is given to a coin that displays less than trace wear on just the design’s peak points, doesn’t have other defects, and still has most of its luster. If a coin is showing noticeable wear but with still sharp features, it is given a grade of “Extremely Fine” (EF-40). From there on, coins are graded with “Very Fine”, “Fine”, “Very Good”, “Good”, and “About Good”.

The grade of a coin (and its value) can go down based on some factors, including holes on the coin, dents on its edges, repairs that are visible, cleaning, re-engraving and gouges. It may make sense that a coin that has been cleaned and polished should be graded higher, but cleaning and polishing actually decreases the grade and value of a coin.

What if the two sides of a coin shows significant difference? In this case, the coin is given a split grade. For example, if a coin is given a grade of “AU/EF”, it means that one side of it displays characteristic of being “About Uncirculated” while its other side displays “Extremely Fine” characteristics.