Coin grading is the single most interesting topic among numismatists, or coin collectors. Grading is how collectors determine the value of any coin and is measured against what that coin should look like if it were perfect.
The most popular grading system in use in the United States gives a perfect, flawless coin the score of 70 and the lowest grade is a 1, given to a coin that is barely recognizable.
The American Numismatic Association calls each level of grading terms adjectives and while the numbers may differ, many of these terms are commonly understood by collectors. A general overview of some of the more common adjectives is listed below along with an explanation.
Poor, or P01, would be the lowest grade possible. It is given to coin that is so worn it is difficult to determine exactly what it is.
Fair, or F02, is the grade given to coins with extreme wear, but that can still be identified.
About good, or AG3, is the grade given to coins that have major wear. Often these coins have little eye appeal, but you can usually make out the mint date.
Good ranges from G4 to G6. These coins are worn also, but the stamping shapes should still be visible, i.e., the outline of Lincoln's head on a penny.
Very good ratings have a range of VG7 to VG10. Coins in this grade are still worn, but have no major marks or damage. Most of the lettering is visible on a very good coin.
Fine grading can range from F12-F15. These coins show most all of the details of the stampings, but can be worn in some places.
Very fine ranges from VF20 to VF35. This coins show light wear overall with some heavier wear on the raised images.
Extremely fine grading runs from EF40 to EF45. These coins only have wear at the highest points, leaving all details sharp and clear.
About un-circulated coins range from AU50 to AU55. Coins in this range still have the original mint luster; yet have some traces of wear.
Choice about un-circulated, or AU58, coins are have little or no wear and still reflect mint luster. These coins are usually collector's coins that have been handed down through generations.
Uncirculated or MS 60 to MS 62 coins have no trace of wear but may have some markings from rubbing against other coins. This term is referred to as 'bag marks'.
Choice un-circulated, or MS63, coins are straight from the mint having no traces of wear and only slight bag marks.
Near gem un-circulated, or MS64, coins show exceptional mint luster, no wear and almost imperceptible bag marks.
Gem un-circulated, or MS65 to M68, coins are near perfect specimens that have impeccable luster and no perceivable surface flaws.
Near perfect, or MS69 coins, are so close to perfect it takes an expect to determine why they have failed to make the MS70 grade.
Perfect, or MS70, is the perfect coin with no flaws or imperfections under a 5X loupe.
Coin values are totally dependant on grading. A single number can be the difference of hundreds of dollars in price for the coin collector. Coin grading is highly subjective and it is suggested that several opinions be cultivated on the grade of any coin before buying or selling.
The American Numismatic Association publishes the reference book, The Official A.N.A. Grading Standards for United States Coins and is considered an absolute necessity for grading coins.
