Why is Coin Grading Important?
Coin ratings allow multiple parties to agree on the state of preservation of a particular coin. Similar coins, of the same date and mint mark, are valued similarly when their state of preservation is the same. One coin that is bright and new-looking is generally valued higher than the same coin that has been worn and does not look brand new. Instinctively, people gravitate toward the coin that “looks better” than a similar coin that looks older or more worn. However, lower grades are not without their own unique appeal. Many collectors search for these “low-ball” examples rather than the popular high-grade coins.
How Did Coin Grading Start?
Prior to 1985, there were a small handful of coin grading services. For a fee, these companies would examine a coin, then take a hi-resolution photo of the coin and send the coin and photo back to the owner. The photograph would state the grade of the coin. In 1985, a group of coin dealers got together in hopes of standardizing the coin grading process. Since some elements of grading coins are subjective, definitive standards were of critical importance. Grading needed to be consistent for each certified coin. They also developed a sealed holder (“slab”) to protect and guarantee the coin’s condition. Coin certification is now standard across metals and country, easing the minds of buyers and sellers.
What is the Sheldon Grading Scale?
In the 1940s, coin collectors realized the higher the state of preservation of a coin, the higher a price one would pay for that coin. Dr. William Sheldon, a psychologist and numismatist, developed a scale that gave coins “points” for displaying certain details. This system was devised for U.S. Large Cents (coins issued between 1793 and 1857) but was soon adopted for all U.S. coins. The Sheldon Grading Scale has since been universally accepted, even internationally. It rates coins with “wear” as circulated coins from grades 1 (poor and barely identifiable) to 58 (almost like new). Uncirculated coins (those with no sign of wear on them) are graded from 60 (lots of marks but no wear) to 70 (perfect).
Uncirculated coins may vary to some degree because of blemishes, toning or slight imperfections as described in the following subdivisions:
Perfect Uncirculated (MS-70). Perfect new condition, showing no trace of wear. The finest quality possible, with no evidence of scratches, handling or contact with other coins. Very few regular issue coins are ever found in this condition.
Choice Uncirculated (MS-65). An above average Uncirculated coin which may be brilliant or lightly toned and has very few contact marks on the surface or rim. MS-67 through MS-62 indicate slightly higher or lower grades of preservation.
Uncirculated (MS-60). Has no trace of wear but may show a number of contact marks, and surface may be spotted or lack some luster.
Choice About Uncirculated (AU-55). Barest evidence of light wear on only the highest points of the design. Most of the mint luster remains.
About Uncirculated (AU-50). Has traces of light wear on many of the high points. At least half of the Mint luster is still present.
Choice Extremely Fine (EF-45). Light overall wear shows on highest points. All design details are very sharp. Some of the Mint luster is evident.
Extremely Fine (EF-40). Design is lightly worn throughout, but all features are sharp and well defined. Traces of luster may show.
Choice Very Fine (VF-30). Light even wear on the surface and highest parts of the design. All lettering and major features are sharp.
Very Fine (VF-20). A moderate amount of wear is noticeable on the high points of the coin’s design. All major details are clear.
Fine (F-12). The coin shows moderate to considerable even wear throughout. Entire design is bold with an overall pleasing appearance.
Very Good (VG-8). Well-worn with main features clear and bold although rather flat.
Good (G-4). Heavily worn with the design visible but faint in areas. Many details are flat. Common coins in “Good” condition are not particularly desirable pieces for collectors. Rare or valuable coins in this condition, however, are often saved when no others are available.
About Good (AG-3). Very heavily worn with portions of lettering date and legends worn smooth. The date may be barely readable.
