Coin Grading

This subject can really confuse me. Time and again have I shopped online and found a coin labeled as "Very Fine" or even "Extremely Fine", and I'm looking at a picture of a corroded and dirty old coin that looks like it's been through a World War or two, and I'm like.... "What?". So I did a bit of research about how coins are graded and what to look for. What I found seems informative and so here it is for all of us who look at the pictures on eBay and say "This guy must be kidding".

Coin Grading Tutorial

Coin grading is done both by adjectives and on a 1-70 numeric scale, and standards are developed enough that most collectors will be able to agree on how a coin should look given how the coin's grade is described.Coin grades are as follows:

Poor (PO-1): Barely recognizable. Large parts of the design will be completely flat. The date may be barely visible or completely missing. Also known as Basal State.

Fair (FR-2): Rims worn well into the design. There should be outlines of some of the images visible on both sides of the coin, but the lettering may be completely gone. Enough of the date should be visible to identify the coin.

About Good (AG-3): Most of the design of the coin will be outlined, but the rims will generally have worn far enough into the design to obliterate parts of the lettering or stars. Sometimes referred to as Almost Good.

Good (G-4, 6): The general design of the coin will be outlined, but there will be very little detail and some parts may be very weak. For the most part, the rim will be intact, but it may wear down to the tops of the letters or stars in some cases. Non-collectors will often refer to their coins as being in "Good" condition; a coin grading Good is actually a very worn coin.

Very Good (VG-8, 10): The coin will have medium to heavy wear, but some details will still be visible. As a rule of thumb, for seated coins, Barber coins, Liberty Nickels, and Indian Head Cents, three or more letters of LIBERTY will be visible.

Fine (F-12, 15): The coin will have medium wear, with quite a few details visible and some high spots obviously worn away. As a rule of thumb, for seated coins, Barber coins, Liberty Nickels, and Indian Head Cents, all seven letters of LIBERTY will be visible, although some may be very weak.

Very Fine (VF-20, 25, 30, 35): The coin will have medium to light wear overall, and all general details will be visible. As a rule of thumb, for seated coins, Barber coins, Liberty Nickels, and Indian Head Cents, all seven letters of LIBERTY will be visible and strong.

Extremely Fine (XF-40, 45): The coin has light wear over the high points only. There may be some traces of mint luster. Also commonly abbreviated as EF.

About Uncirculated (AU-50, 53, 55, 58): The coin has wear ranging from extremely light to only a trace of friction on the highest points, along with medium to nearly full luster. AU-58 coins have so little wear that they are often mistaken for Uncirculated coins, hence the nickname "Slider", and in some cases are more attractive than low-end uncirculated coins. It has been said that an AU-58 coin is an MS-63 coin with a trace of wear. AU is sometimes referred to as Almost Uncirculated.

The above grades refer to circulated coins only, and are meant as general guides only. Standards can vary from type to type and sometimes even from date to date depending on factors such as design and striking standards. For instance, there is much more tolerance of missing parts of the date on Buffalo Nickels and pre-1925 Standing Liberty Quarters than on most other coins because the date is one of the high points of these two designs. By definition, all circulated coins will have at least a trace of wear; as a result, no circulated coin may grade higher than AU-58.

Coins with no wear at all are alternately referred to as Uncirculated (Unc.), Brilliant Uncirculated (BU), and Mint State (MS). When a numerical grade is assigned to an uncirculated coin, it goes along with the abbreviation MS, such as MS-60.

It is important to note that Uncirculated and similar terms refer only to the fact that the coin has no wear. The presence or absence of bagmarks, toning (discoloration), or a strong strike does not affect a coin's Uncirculated status, although such things can affect the numerical grade of the coin.

Uncirculated (MS-60, 61, 62): An uncirculated coin with noticeable deficiencies, generally either an overabundance of bagmarks, a poor strike, or poor luster. Although most price guides will give a price for coins in MS-60 condition, in many cases this is a very unusual grade, with typical uncirculated pieces often grading somewhere in the MS-62 to MS-64 range depending on the series.

Select Uncirculated (MS-63): An uncirculated coin with fewer deficiencies than coins in lower uncirculated grades. In general, this will be an uncirculated coin with relatively ordinary eye appeal. Select Uncirculated is sometimes used to refer to a coin grading MS-62.
Choice Uncirculated (MS-64): An uncirculated coin with moderate distracting marks or deficiencies. These coins generally have average to above average eye appeal. Choice Uncirculated is sometimes used to refer to a coin grading MS-63.

Gem Uncirculated (MS-65, 66): An uncirculated coin with only minor distracting marks or imperfections. At this point, mint luster is expected to be full, although toning is quite acceptable.

Superb Gem Uncirculated (MS-67, 68, 69): An uncirculated coin with only the slightest distracting marks or imperfections. Toning is still quite acceptable and in these grades will usually be pleasing. Many circulating coins even of relatively recent dates are quite rare in such lofty grades, although modern bullion coins and commemoratives are often found in grades as high as MS-69.

Perfect Uncirculated (MS-70): An utterly flawless coin.

Proof is not a grade. The term refers to a method of manufacture rather than the condition of the coin. Proof coins are graded exactly as other coins of the series, yet always receive the abbreviation PR (sometimes PF). If a proof coin has wear, then it is called an Impaired Proof, and will receive the grade appropriate to the amount of wear it has. It is quite possible for a coin to be graded PR-12, for example.
The above grades are independent of the age of the coin, and when a novice says that a coin "is in good condition for its age," it almost invariably means that the coin is well worn.
Grades do not take into account problems with the coin such as cleaning, corrosion, damage, and the like. However, ANACS has made a market niche for itself by grading and encapsulating coins with problems, noting both the level of wear and the problems of the coin, and assigning a Net Grade which takes both into account while attempting to find the grade that best fits their opinion of what the coin would sell for in the open market.

Thank you this tutorial, but it's not clear, very theoretical. I guess to understand better if some one can provide picture of any one coin with all these grade it will be a great help. A Single coin from POOR >>>>>MS70

Grading is very subjective. Post a good photo of a coin and get everyone to give their rating and you'll see a wide range. Luckily there are a lot of photo guides out there that can give you an idea of the general range for a grade. For anyone with Her Majesty Queen Elizabeth II on their coins this guide of Canadian coins can be a help:

http://www.coinsandcanada.com/coins-grading.php

Of course even this is the opinion of the writer.

You can use guides like this to give you an idea for other coins as well, as long as you have a clear reference for the coin you're trying to grade.

Yes. Coin grading is a very subjective thing. I just thought I'd post that guide so those of us who are new to coins (points to self) has an idea of what people are talking about when they talk in that odd coin language of theirs.

And time and again I've read a coin's description as being Extra Fine and then looked at the picture and to me it looks like just any old coin and a rather dirty count that. Anyhow, I just found it a bit educational for a novice.

Yes, subjective... for that, let us hope, our swap list will be appreciated by the others even if not so sharp in reality.

Quote: "Kipsley"​Yes. Coin grading is a very subjective thing. I just thought I'd post that guide so those of us who are new to coins (points to self) has an idea of what people are talking about when they talk in that odd coin language of theirs.
​
​And time and again I've read a coin's description as being Extra Fine and then looked at the picture and to me it looks like just any old coin and a rather dirty count that. Anyhow, I just found it a bit educational for a novice.

​Dirt, toning, and tarnish aren't typically taken into account when grading a piece. Those things would just be listed as additional attributes.

Also, many sellers on eBay like to grade (coughovergradecough) their coins to make them more desirable.

I have found that to be true, and so it's also why I wanted to learn more about grading coins and what is extra fine and very good, etc. At least that way I can have a good look at the picture and make up my own mind as to it's grade.

https://raymondupdyke.wordpress.com/

Here, a useful picture about coin grading comparison.

This pictures are very helpful. Thank you. But how is a coin graded if it has damage?

I saw great looking 50 pfennig coin on eBay the other day. It looked XF in grade. But looking at it's other side showed what looked like corrosion on almost a quarter of the surface. How are such coins graded?

Grading is about usage.
The damage is the damage: generally it deprives the coin of a large part of the value (holes, heavy corrosion)

Quote: "Kipsley"​This pictures are very helpful. Thank you. But how is a coin graded if it has damage?
​
​I saw great looking 50 pfennig coin on eBay the other day. It looked XF in grade. But looking at it's other side showed what looked like corrosion on almost a quarter of the surface. How are such coins graded?

​you can grade a coin per side. For example XF/F.

Hmmmm. OK. So I have this coin in my collection. It's an 1865 A 2 pfenning from the German Confederation. Under a magnifying glass every detail is still there, sharp with no real dicernable wear (to my novice eyes) so I would grade this coin as being XF. Thing is it's almost completely black (very dark in color). No damage, no corrosion, just very very dark. Have I graded this coin properly or does the fact that you have to have a really good look just to see what it is make it VF or less?

Sorry if this is getting repetitive, it's just I am really interested in how coins are graded.

I may be mistaken, but it seems to me that this grade system is developed to mostly assess the condition of older coins made of soft metals (gold, silver and pure copper), for which wear would be the main degrading factor. But for 1960+ coins (that my and many other people's collections mostly consists of) this scale is very unhelpful. Judging by only feature visibility and recognizebility, almost all modern coins, even heavily circulated, should be placed either in VF or XF. Because, duh! Modern hard alloys...

What interests me is how to assess the following factors of degradation of modern coins:

- multiple small scratches on flat surfaces, which do not affect actual coin features, but definitely change the overall coin's look and "condition feel".
- patina/tarnish, i. e. even changes in color of all kinds; especially interesting how to assess DIFFERENT changes in color, because under different conditions the same coin may develop very different kinds of coloration. I have a Pfennig with a really beautiful deeply PURPLE patina, I kid you not!
- oxidation or "rust" spots, i. e. UNeven changes in coloration of all kinds; to my unprofessional eye this is the main "meh" factor of common modern circulated coins.
- plating damage or wear (if a coin is made of plated material).
- finally, intentional damage, that does not really change the features: drilled holes through flat parts, coloring with various difficult to remove pigments, forced oxidation using chemicals etc. I must confess that in my childhood I quite enjoyed silvering Soviet brass coins (with actual silver, using the used-up photographic fixer ), I wonder how somebody would assess one of those coins -- all features completely clear and visible, of course...

Quote: "Kipsley"​Hmmmm. OK. So I have this coin in my collection. It's an 1865 A 2 pfenning from the German Confederation. Under a magnifying glass every detail is still there, sharp with no real dicernable wear (to my novice eyes) so I would grade this coin as being XF. Thing is it's almost completely black (very dark in color). No damage, no corrosion, just very very dark. Have I graded this coin properly or does the fact that you have to have a really good look just to see what it is make it VF or less?
​
​Sorry if this is getting repetitive, it's just I am really interested in how coins are graded.

​The black is likely just the natural toning of the metal, so that would not affect the grade but may be mentioned as a note. There are different patinas that seem to get more pull than others, they can affect the sale price but not the grade.

Just so you will understand the "logic" of the 70-point grading system:

Years ago, a man named Sheldon established the grading system for U. S. large cents dated 1794. At that time, a coin that was "basal state" (almost unidentifiable) was worth $1, and a perfect Uncirculated coin was worth $70 (this was a LONG time ago). So he assigned the numbers to go with the various grades, based on the relative values of 1794 cents in those grades.

(By current Coin World Trends, a common variety of 1794 cent, in Sheldon's AG 3 grade ($3 value), is now worth $250, and his MS 60 grade ($60 value) is now worth $14,500!) This numbering system, designed for copper large cents, has now been applied to all US coins, including silver dollars, where Sheldon's ratios never meant anything.

Quote: "yuretzius"​I may be mistaken, but it seems to me that this grade system is developed to mostly assess the condition of older coins made of soft metals (gold, silver and pure copper), for which wear would be the main degrading factor. But for 1960+ coins (that my and many other people's collections mostly consists of) this scale is very unhelpful. Judging by only feature visibility and recognizebility, almost all modern coins, even heavily circulated, should be placed either in VF or XF. Because, duh! Modern hard alloys...
​
​What interests me is how to assess the following factors of degradation of modern coins:
​
​- multiple small scratches on flat surfaces, which do not affect actual coin features, but definitely change the overall coin's look and "condition feel".
​- patina/tarnish, i. e. even changes in color of all kinds; especially interesting how to assess DIFFERENT changes in color, because under different conditions the same coin may develop very different kinds of coloration. I have a Pfennig with a really beautiful deeply PURPLE patina, I kid you not!
​- oxidation or "rust" spots, i. e. UNeven changes in coloration of all kinds; to my unprofessional eye this is the main "meh" factor of common modern circulated coins.
​- plating damage or wear (if a coin is made of plated material).
​- finally, intentional damage, that does not really change the features: drilled holes through flat parts, coloring with various difficult to remove pigments, forced oxidation using chemicals etc. I must confess that in my childhood I quite enjoyed silvering Soviet brass coins (with actual silver, using the used-up photographic fixer ), I wonder how somebody would assess one of those coins -- all features completely clear and visible, of course...

​As you assume, the quoted grading standards were primarily established for coins of the early 20th century; however, some of those alloys--such as copper-nickel--were as hard then as they are now.

Most coins in circulation now would generally fall in the range from VF to AU.

Coins that have numerous small scratches will lower the coin grade, even if they are really bagmarks--and worse if they are actually scratches.

As with any coins with a significant problem--rust, corrosion, plating, harsh cleaning, whizzing, holes, large scratches, etc.--the coin can be assigned a "wear" grade and a "net" grade, which deducts a number of points, depending on the severity of the damage. Third Party Grading Services do this all the time. I have never seen any hard and fast rules as to how many points are deducted for such damage--it is quite judgemental.

Patina/tarnish usually does not affect the grade, and may actually improve the attractiveness of a particular coin, to a particular collector group. ARTIFICIAL toning should affect the net grade of a coin.

Oxidation of a silver coin is the same as toning, and should not affect the grade. Oxidation of zinc or aluminum usually also means corrosion, and will severely affect the (net) grade.

Grading also gets challenging, when you are dealing with older coins, or coins minted under emergency situations (like those of German East Africa in 1916, or American Colonial coins). When the coin is poorly struck, determining what is worn and what was never there can be problematic. Sometimes, dealers of some of these issues will grade the visible part of the coin, and then state "60% visible", to indicate that 40% of the design was never visible.

Anyone else remember "net grades"?

Way back in the pre internet days when coins were sold by mailing lists and high quality photos were only for the very top tier auction house, it was important to be as accurate as possible. Profit margins were either non existent or slim, so it was important to avoid the expense of having inaccurately graded coins returned. It was considered the gentlemanly thing to do to refund both the purchase price and the cost to the buyer of returning the offending coin. Non gentlemen didn't last very long as reputation was all important.

As we've already noted, the two sides of a coin can wear quite unevenly so it was pretty common to see a coin listed with two grades, e.g. NVF/F and GF (net) . (The "G" and "N" were abbreviations of Nearly and Good and have since been replaced by +/- modifiers) It wasn't used in all cases and it's main purpose was to establish a value. It's generally considered better to have a nice portrait rather than some obscure heraldic device on the reverse. For some series it would be pointless due to the design, for example Swiss coins always have a better preserved reverse so it's not really necessary to list them all as F/NVF.

The period I'm referring to was roughly the 1970s. I'm sure that net grades were used earlier, before my time, but by the time eBay turned everyone into a coin dealer they had vanished.

While eBay and the internet have made coin collecting much easier, I really do miss the old days of hand written, occasionally typed and Xerox copied, lists and coin dealers who understood their product. Discreet ads on the inside back page of "Coin Weekly" , 2nd class recorded delivery, the courtesy of sending a stamped, addressed envelope for the next mailing list and the genuine excitement when the annual coin show came to town. One thing we didn't have was thieves and scammers. It may seem hard to believe but you could quite safely send a cheque or a postal order to a complete stranger and it would never even occur to you to have any concerns over non arrival of your coins. It just didn't happen.

No thieves in "The Good Old Days"? Obviously, you never set up a table at a flea market or coin show....And how would you label those who charged 5 times catalog for a coin in those "glory days"?

I bought a collection from a lady who had bought $300,000 of coins from telemarketers in the 1970s. One coin was a $20 gold coin, dated 1875 CC and graded (by the seller) as MS 65. The coin was AU for condition, and had been holed and repaired!

Quote: "pnightingale"​Anyone else remember "net grades"?

​
​The period I'm referring to was roughly the 1970s. I'm sure that net grades were used earlier, before my time, but by the time eBay turned everyone into a coin dealer they had vanished.

​I have an 1892 Quarter, Triple Die Rev, that was graded by ANACS as "AU Details, Net EF 45, Cleaned", and this was long after I started on eBay in 1997. At that time, PCGS would not give a net grade on a coin--if it had problems, they sent it back in a "body bag" (clear plastic bag) and did not encapsulate it.

Ah, I'm referring to the situation in England only, I didn't wash up in the US until 2000 by which time the genie was firmly out of the toothpaste tube.