Coin Grading - Get it Right the First Time You Invest!

The value of a coin is generally determined byidentified; its date and detail may be completely
three factors, rarity, demand and condition.worn, the coin is usually has a smooth flat
Amateur coin collectors and investors are easilysurface.
able to determine if a coin has rarity or demand,Fair - 2 A coin in fair condition may have the date
few could say they are knowledgeable inand half the major detail faintly recognisable,
determining the condition of a coin. Condition ismostly a smooth, flat coin.
everything when two like coins compete for bestGood (G-4) This coin will be heavily worn, its
price, would you buy the MS 63 Penny or the VFmajor detail weak. The main designs will be
Penny?recognisable.
The information below will help you navigate yourVery Good (VG-8) Most of the major detail visible
way to a basic understanding of coin grading. Getbut heavily worn.
yourself two or three coins and grade themFine (F-12) Finer Detail is visible though worn
according to either of the following scales:heavily, major detail apparent.
The most basic coin grading scale and the oneVery Fine (VF-20) A coin in this condition should
most regularly used at online auctions:have a moderate even wear and all major
Gem Uncirculated - Full mint lustre, virtuallyfeatures should be visible.
flawless strike, any detracting marks areExtremely Fine (XF-40) This coin should have
insignificant, great eye appeal & beautiful fields.traces of mint lustre. There should be slight wear
UNC -Uncirculated - Good eye appeal, noon the high points of many designs.
significant detracting marks, may have someAbout Un-circulated (AU-50) Mint lustre will be
insignificant bagging, good strike and should haveevident. There will be faint traces of wear in the
lustre present. No damage to the rim.highest points. All other high points should be
EF - Extra Fine - Lightly worn on the high pointsclearly visible, while showing no wear in the design
only. Usually has been withdrawn from circulationon the lower areas.
early. Still has some lustre and should have veryMint State (MS-60) Completely un-circulated
good eye appeal. Insignificant rim marks only.condition. Excellent lustre - though it may not be
VF - Very Fine - Has obvious wear to the highevident across all fields. The coin may have a few
points of the coin through considerable circulation.marks, a natural result from minting and
Rim shows some light damage / marks. The cointransportation.
pattern should still be crisp and most importantly,Mint State (MS-65) Full mint lustre on all of the
the coin should look good to the eye. Traces ofcoin's surfaces. No detracting marks at all.
lustre present.Mint State (MS-70) Perfect!
F - Fine - Well circulated coin with extensive wearIt all seems like a bit much at first but it's easiest
on the design. Average at best.if you start at the top and work down to
VG - Very Good - You can just make out thedetermine a coin's grade. For example if your coin
date and design, nearly all other pattern detail ishas detracting marks it will be below MS 65, faint
gone.traces of wear and it will be below MS 60.
If you are after a more accurate picture this isCoin grading is an essential skill and very
the Grading system used by professional coincontentious when Investors / Collectors disagree
grading companies. It is called the Sheldon Systemon a coin's grade. It can mean hundreds,
and provides a more detailed description. Manythousands and even millions of dollars difference
rare Australian coins are sent to companies liketo the value of a coin. It is quite well known that
PCGS in the USA, returning with a grade frommany investors send their coins to grading
this system.companies several times over in the hope of a
Poor - 1 A coin in this condition can just bebetter outcome.