Grading Coins - Coin Collecting Values

The condition of a coin is organized by grade. The condition of a coin is one of the most important factors in determining its value, after demand and rarity. In general, the higher the grade of a coin, the higher its value will be. There are of course exceptions to this rule, but grades provide a useful system for determining the value of coins.

Characteristics of a coin which affect its grade are surface condition, luster and strike, as well as the more subjective factor of eye appeal. If these qualities are less than optimal, then the grade (and with it, the value) of the coin is decreased. In many cases, a trained eye is necessary to spot some of the variance in conditions which can affect grade. In fact, even some expert coin graders may look at the same coin and assign it a different grade.

While it takes experience and a degree of talent to accurately grade coins, even an amateur can follow the basic guidelines of the grading system to approximately estimate the grade of a coin. The American Numismatic Association has developed a 70-point system which is the most commonly used system to assess the grade of a coin.

The highest grade which can be assigned to a coin is uncirculated (also called mint). The lowest grade which can be given to a proof or otherwise uncirculated coin is 60. This grade reflects no visible surface wear other than possible light contact marks, surface spotting or some loss of luster. A coin with a grade of 70 is in perfect condition with no visible sign of wear from circulation or contact with other coins. Another very high grade for coins is proof, which actually denotes the way the coin was produced rather than indicating its condition. A proof is a coin which is specially made and is distinguishable by the sharpness of detail and mirror-like surface of the coin.

A Choice About Uncirculated or AU-55 coin will have barely noticeable surface wear on the highest points of its design but is free of other defects and retains its luster. About Uncirculated, AU-55, must have at least half of its original luster intact but may have trace wear on the highest parts of its design. An Extremely Fine, EF-40, will retain its features’ sharpness, but can have noticeable surface wear. From this grade, there are declining orders of grades: Very Fine, Fine, Very Good, Good and About Good.

Any damage such as edge dents, holes, signs of cleaning or repair, gouges or re-engraving will greatly affect the grade and the value of a coin. There are those who try to pass off coins as being of a higher grade by cleaning them; however, cleaning can greatly lower grade and value.

A split grade may be assigned to a coin when there is a noticeable difference between the two sides of a coin. These grades are denoted by a / between the two halves of the grade. For instance, EF/AU indicates a coin which has one side in EF condition, the other in AU condition.