Why You Need To Buy and Sell Gold Coins (Part 5)

Grading coinsThe condition of a coin is commonlycollectors and dealers you trust, or concentrate
summarized by a grade. Because the value ofon circulated coins.Circulated CoinsFor circulated
collectible coins often varies dramatically withcoins the grade is primarily an indication of how
grade and overly generous grading is notmuch wear has occurred and generally does not
uncommon, reasonable grading proficiency is antake into account the presence or absence of
important skill for collectors. The materialdings, scratches, toning, dirt and other foreign
presented here is intended only as an introductionsubstances (though such information may also be
to the subject. Grading is a skill that can only benoted).ANA grading standards recognize 11 grades
developed over time through referrals to gradingfor circulated coins (listed here with brief, generic
guides, consultation with experienced collectorsdescriptions):AU-58, very choice about
and dealers, and lots of practice.Publisheduncirculated: just traces of wear on a coin with
standards set objective criteria for grading, yetnearly full luster and no major detracting contact
some amount of subjectivity is inevitable -- evenmarksAU-55, choice about uncirculated: small
expert graders will often assign slightly differenttraces of wear visible on the highest pointsAU-50,
grades to the same coin. While you can often askabout uncirculated: very light wear on the highest
an experienced grader for an opinion, being ablepoints; still has at least half of the original mint
to make your own reasonable assessment oflusterEF-45 or XF-45, choice extremely fine: all
grade is your best protection.An overview ofdesign details are sharp; some mint luster remains,
American Numismatic Association standardsthough perhaps only in "protected areas"EF-40 or
follows. ANA standards are widely used in the U.S.XF-40, extremely fine: slightly more wear than a
but are not the only system used. Much of the"45"; traces of mint luster may showVF-30,
rest of the world uses the grades Fair, Fine, Verychoice very fine: light even wear on high points, all
Fine, Extremely Fine, Uncirculated andlettering and design details are sharpVF-20, very
Fleur-de-coin.Numerals used in coin grades havefine: most details are still well defined; high points
been taken from the Sheldon scale (seeare smoothF-12, fine: major elements are still clear
Glossary).Uncirculated CoinsCoins with no wear atbut details are worn awayVG-8, very good: major
all are referred to as uncirculated or in mint statedesign elements, letters and numerals are worn
(MS). Grades from MS-60 to MS-70 in one pointbut clearG-4, good: major design elements are
increments are used for mint state coins. Criteriaoutlined but details are gone; for some series the
include luster; the number, size and location ofdate may not be sharp and the rim may not be
contact marks; the number, size and location ofcomplete.AG-3, about good: heavily worn; date
any hairlines, and the quality of the strike andmay be barely discernable
overall eye appeal..An MS-60 coin may have dullWhile coins more worn than AG are rarely
luster and numerous contact marks in prime focalcollected, two additional grades are nevertheless
areas, as long as there is no wear. To meritused to characterize them:F-2, fair -- very heavily
MS-65, a coin should have brilliant cartwheel lusterworn; major portions may be completely
(attractive toning is permissible), at most a fewsmoothP-1, poor, filler or cull -- barely recognizable
inconspicuous contact marks, no hairlines, and
nearly complete striking details. Grades fromWhile not included in the ANA standards,
MS-61 to MS-64 cover intermediate parts of thisintermediate grades like AU-53,
range. Truly exceptional coins may be gradedVF-35, F-15 and G-6 are used by some dealers
MS-66, MS-67 or, if absolutely flawless, as high asand grading services. When a grader believes a
the theoretical maximum of MS-70. Manycoin is better than the minimum requirements but
numismatists consider MS-70 to be annot nice enough for the next higher grade "+" or
unobtainable ideal.Terms such as brilliant"PQ" may be included (e.g. MS64PQ or VG+) or a
uncirculated (BU), choice BU, gem BU, select BUrange may be given (e.g. F-VF).Split GradesWhen
and premium BU are still used in lieu of numericalthere are significant differences between the
grades by some dealers, auctioneers and others.obverse and reverse sides, a split grade may be
Correlations between these terms and theassigned. Split grades are denoted with a "/". For
numeric MS grades are difficult at best, becauseexample, "F/VF" means that the obverse is F and
of inconsistent usage and in some casesthe reverse is VF.The overall grade is often
overgrading.Market values for many uncirculateddetermined by the obverse. An intermediate value
coins vary dramatically from one grade to themay be appropriate when the difference is
next. Remember that whether a coin is describedsignificant, especially if the reverse is lower. A coin
with a numerical or an adjectival grade, it's onlygraded MS-60/61 would be considered to have an
someone's opinion. Until you are comfortable withoverall grade of MS-60, and another at MS-65/63
your ability to grade uncirculated coins, makecould be considered to have an overall grade of
liberal use of other opinions, such as thoseMS-64.
available with slabbed coins or from experienced