The grade of a coin will directly affect its price; meaning, the higher the grade, the higher the price it can command at an auction or sale. While some coin experts posit that you must be trained to grade coins, most people can learn a few basics that will allow them to “eyeball” a coin and estimate the grade without the need for a certified grader. (Keep in mind, though, that if you’re buying or selling you’ll want an official grade eventually.)
The grading scale used most extensively with coins is the Shelby scale, which runs from 0 to 70. A coin with grade 0 is barely recognizable as something that was once a coin, while a perfect grade of 70 means absolutely flawless. While most coins don’t reach the highest scores, a grade of 60 is designated Mint State, or Uncirculated, and would be flawless to the untrained eye. In a typical batch of new pennies, the average coin would be between a grade of 60 and 63.
Depending on the type of coin, there will be different criteria for each grade. Copper and silver coins tend to wear down more quickly than alloy coins, and each coin has different features that will stand up to wear and tear.
Here’s a basic rundown of coin grades, from the most worn to the best condition. Note that most grades will come with a number that corresponds to the Shelby scale. A representative number is included below:
Basal state (Basal) - 0. Barely recognizable as to denomination and other details
Fair (Fair) - 2. Able to identify the coin by type, but very worn
Almost Good (AG) - 3. Can see a slight outline of the coin’s design, but date and other details are worn off
Good (G) - 5. Worn, but date, design and other markings are readable.
Very Good (VG) - 8. Has a lot of wear, but you can clearly tell the design.
Fine (F) - 12. Design is fairly clear, although details are worn down.
Very Fine (VF) - 25. Design is, for the most part, clear and sharp. Generally a few years of wear.
Extremely Fine (EF or XF) - 40. Only the highest points on the design show signs of light wear.
Almost Uncirculated (AU) - 55. Shows some very slight traces of wear, mainly on the high spots on the face of the coin.
Mint State (Unc) - 60 and up. A mint coin will show no evidence of wear.
There are a number of professional coin grading houses, including these industry leaders:
ANACS - American Numismatic Association Certification Service
An offshoot of the American Numismatic Association (ANA), the ANACS offers unbiased grading services for coin collectors. They offer a “per coin” price, and even provide an express two-day service for an extra charge.
ICGS - Independent Coin Grading Service
This coin evaluation service offers a collectors club for its customers, with lots of resources on coins.
NGC - Numismatic Guarantee Corporation
Since 1987, NGC has been offering coin grading services with the aim of consistency and impartiality. They will grade a coin based on both its rarity and its overall condition.
NTC - Numistrust Corporation
Independent coin grading service that is available to both dealers and private collectors and hobbyists.
PCGS - Professional Coin Grading Service
One of the first independent coin grading services, their website also offers a wealth of useful information for serious investment collectors and hobbyists alike.
PCI - Photo-certified Coin Institute
PCI offers grading services for both United States and foreign coins, as well as a special service for damaged a corroded coins.
SEGS - Sovereign Entities Grading Service
Specializing in rare coin grading, this firm offers a pre-screening service as well as a resubmission service for grading verification.
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