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Coin Grading

2021-11-10 08:00:00
Coin Grading
Posted in: News, Numismatics 101

Coin Grading

Grading Services

The idea of grading coins has long been a part of numismatics. However, in the 1980s, third-party grading services became prevalent. Through the creation of third-party grading services, numismatists no longer needed to trust dealers about the quality of a coin. Instead, collectors could rely on third-party graders to give them an unbiased grading of the coin’s quality and eye appeal. 

The two most respected and reliable coin grading services around the world are the Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS). These services hire professional graders who inspect coins in the proper lighting and under optimal magnification in order to guarantee that your coin is the grade that is being sold to you. Once graded, the coins are placed into air-tight and waterproof plastic cases to ensure that they do not undergo oxidization or get damaged from environmental circumstances. Most of the coins that we sell at Rare Collectibles TV are graded by NGC and PCGS so that our customers are guaranteed that the coins we are selling are the grade that they are given.

 

SHELDON GRADING SCALE

When a coin is graded, a two-letter code is used as an abbreviation. For example, a coin graded in Mint State 64 condition would be called MS64. Proof coins are abbreviated as either PF or PR. An extremely uncommon classification is Specimen, which is used for coins that aren’t Proofs, but were struck above the quality of a Mint State example. The abbreviation for Specimen is SP.

 

Criteria for grading Mint State coins

When it comes to grading Mint State coins, or uncirculated coins, a coin cannot exhibit any wear that is consistent with use. If a coin exhibits wear, then it will be classified as circulated. If a coin does not exhibit any wear, it is considered Mint State and will be graded on four categories of criteria. The first category is surface preservation, which encompasses any scratches, gauges, scrapes, or hairlines your coin may have. The second category is strike strength, the stronger the strike the better. Weak strikes can be caused by worn out dies, low striking pressure, planchet defects, and dies being set too far apart while striking coins. The third category is luster, or the reflectivity of a coin, which is caused by stress lines in the metal when introduced to high pressure strikes. These stress lines are what give coins the cartwheel effect, an indication of maximum luster. The final category, eye appeal, is the most subjective of all. Eye appeal takes into account all three of the categories above as well as toning. 

Criteria for grading circulated coins

The criteria for grading a circulated coin is entirely different. To grade a circulated coin what is primarily looked at is the wear of the coin, far less important than that is the eye appeal of the coin. The wear of a coin starts at the highest relief points and works its way down to the lowest relief point. If only a small portion of the high relief portions of your coin are worn down, then your coin will probably be graded AU, or About Uncirculated. If your coin’s high relief points are completely worn down and your coin’s details are practically eliminated, then your coin will receive something closer to a Good, or Very Good grade. Although eye appeal plays a role in the grading of circulated coins, a majority of the decision is made based on the wear.

NUMISMATIC GRADES

Circulated

Poor 01: Coin’s date and type can be determined

Fair 02: Visible date, some basic device outlines

About Good 03: Heavily worn out lettering and rim, but still legible.

Good 04 – 06: Letters and numbers are nearly full if not completely, rim of coin is pronounced

Very Good 08 – 10: Worn out design, some details showing, letters and digits are soft.

Fine 12 – 15: Recessed areas are soft, letters and digits are sharp and legible, about 50% of detail is showing.

Very Fine 20- 35: Details becoming more pronounced, can show full details with moderate to low softness.

Extremely Fine 40 - 45: Complete details with minor wear on all or some of high points.

About Uncirculated 50 - 58(>95% detail): Ranges from slight wear on 50%+ of design to nearly no wear on any of the design. Highest relief points are generally soft, but design can be fully detailed.

 

Mint State

MS60 - 61: Weak strike, no wear, heavy marks and scratches on fields and devices.

MS62 - 63: Slightly weak to average strike, moderate marks and scratches on fields and devices

MS64: Average strike, light marks and scratches, mostly on devices, minimum markings on fields

MS65 - 66: Well struck, minimal marks and hairlines fields and devices, not on any focal points

MS67 - 68: Sharp strike, very limited imperfections

MS69: Full strike with almost no imperfections whatsoever

MS70: A perfect coin, markings only discernable by loupe of 5x magnification strength