Grading Your Coins !

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Author: Bill O'Rourke

Grading coins is a subjective thing. What does that mean?

Well, grading is our way of labeling the condition of a coin so that it can be described to other collectors. Here is what makes our current coin grading system a little difficult for most people. Actually, let me backtrack a little first. In the early days of collecting, there were descriptions used like FAIR, GOOD, VERY GOOD, FINE, VERY FINE, EXTREMELY FINE, ABOUT UNCIRCULATED and UNCIRCULATED. That wasn't too bad as there were guidelines for each coin series that made assigning a grade to a coin fairly cut and dry. You could use the horn on a BUFFALO nickel for example to decide how worn one of those coins was. The more horn visible, the better the coin as there was less wear to the high point of the design, which was the horn on the Buffalo. People began to notice that the methods of grading coins didn't always work. If a coin was not well struck or if the dies used to strike a coin was worn, all the detail might not be as strong as it should be on that coin. So an UNCIRCULATED Buffalo or INDIAN HEAD five-cent coin could have only enough of the horn showing to merit a VERY FINE grade. There was something not right about that system. While it worked much of the time, it had some serious flaws.

What was developed over time , and here is where grading gets tough, is a scale with 70 (seventy) different points on it that can be used to assign a grade to a coin. For example, there are now 10 (ten) different and individual grades for what used to be UNCIRCULATED coins. They range from a low end UNCIRCULATED called MS-60 to a PERFECT UNCIRCULATED coin called MS-70. MS stands for MINT STATE.

Grades range from AG (About Good), G (Good), VG (Very Good), F (Fine), VF (Very Fine), EF (Extremely Fine), AU (About Uncirculated), then UNC or MS (Uncirculated or Mint State).

That means you may see something like G-4 (Good-4) or G-6 (Good-6) for coins that are in different grades of what used to be simply GOOD condition. You might see coins that are UNCIRCULATED graded as MS-60 (Mint State-60), MS-63 (Mint State-63) or MS-69 (Mint State-69). Each difference in grade due to a minutely better standard of condition on a coin.

Coins are generally collected from a low grade of AG-3 up to a high grade of MS-70. MS-70 graded coins are extremely rare as it is almost impossible for a coin made for regular circulation to be 100% perfect in every way. You nust be cautious when looking at or purchasing MS-70 coins as this is where the "subjective" part comes into play. The term "subjective" means open to interpretation or opinion. One persons MS-70 can be another person's MS-65 and there can be a huge difference in the cost of a coin based upon its grade.

A coin can only be properly graded if the person or persons doing the grading is an expert in the field of grading which makes their opinions more valid than the average collector or coin dealer. There will be more on this in an article about THIRD PARTY GRADING and what we call "SLABS". Many reputable dealers will seek the opinion of a reputable THIRD PARTY GRADER in order to have their coins conditions appraised. It is also important to note that some THIRD PARTY GRADERS are not experts and they assign grades to coins that are far above the actual accepted grades in the hobby.

The average person who is not familiar with coins will usually say that their coin is in "Mint Condition" or is in "Excellent Shape" if they can simply see some details on the coin. In many cases what is thought to be in Excellent Condition by a novice collector is not much more than VG-8 or VERY GOOD to a collector. The grade of a coin is extremely important in allowing collectors to determine its worth. You should try to learn as much about grading coins as you can before you venture into the world of coin collecting. You can ask about grading right here!