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Complete Guide to Coin Grading
By GOVMINT:
Coin grading involves evaluating a coin's condition to provide a standardized description of its appearance and preservation. For collectors and dealers, professional grading plays a vital role in understanding a coin's appeal, quality, and historical integrity. This guide explores the coin grading system, how to grade coins, and how collectors can use these insights to make informed decisions based on widely accepted coin grading standards.
Table of Contents
What Is Coin Grading?
Coin grading is the standardized process of evaluating a coin's condition, including its appearance, surface preservation, and strike quality. Coin grades allow collectors to understand the condition of a coin objectively, without relying on subjective opinions. Whether a coin is centuries old or freshly minted, grading offers consistent language for describing its state using accepted numismatic grading criteria.
Why Coin Grading Is Important
Numismatic grading is essential because it provides transparency for buyers and sellers and reduces misunderstandings between parties. Coin grading standards offer credibility and consistency, ensuring collectors know exactly what to expect when purchasing a coin.
Coin grading also contributes to the long-term appeal of coin collections. Understanding how to grade coins equips collectors with the tools to compare coins within the market, identify quality pieces, avoid counterfeits, and maintain the integrity of their collection over time.
Notable Coin Grading Systems
Modern coin grading involves well-established systems that offer collectors and dealers a universal assessment standard. The most common coin grades are derived from the Sheldon Scale which is used by professional grading companies like Numismatic Guaranty Company (NGC) and Professional Coin Grading Service (PCGS).
The Sheldon Grading Scale
In the late 1940's, Dr. William Sheldon, a renowned numismatist, introduced a tool that would forever change the numismatic world as we know it today. Referred to as the Sheldon Grading Scale, this tool analyses a coin's condition using a 70-point grading system to determine the quality of each coin. The Sheldon Scale is used as an industry standard by third-party grading services around the world to accurately assess a coin's condition.
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NGC Certified Designations
In addition to numerical grades, NGC may award qualifying coins with various designations. Designations can pertain to a particular attribute of a coin that goes beyond the awarded numerical grade such as the time period the specific coin was struck during the series.
Many collectors pursue specific designated coins for their collections.
NGC Certified Designations
Early Releases and First Releases
Qualifying coins must be received by NGC or NGC-approved depository no more than 30 days after a coin has been released by the Mint. Early Releases and First Releases designations are determined by the same standards outlined above and are often used interchangeably.
First Day of Issue
Eligible coins will need to be purchased from the Mint within one day after the coin's first day of issue. These coins will also need to be received by NGC or NGC-approved depository within one week from the coin's release date. When submitting the coin to NGC, proof must be provided in order to prove the date of purchase.
First Day of Production
In order to receive this designation, the coin must be struck within the first day of its production at the Mint. Qualifying coins must be submitted to NGC or NGC-approved depository with a documentation from the Mint that verifies that it was struck on the first day of production.
PCGS Certified Designations
PCGS also awards qualifying coins with special designations that have been received for grading within a certain amount of time from the occurrence of a special event. These designations will be notated on the coin's label in addition to the numeric grade. Designations can easily enhance any collection.
First Strike
This designation will be applied to coins that are issued to PCGS within 30 days of its release.
First Day of Issue
Similar to NGC's process, PCGS awards this designation to coins that are received by PCGS within one day of its first release date.
The Sheldon Scale
Developed in 1948 by Dr. William Sheldon, the Sheldon Scale is a 70-point system used to rate a coin's condition from 1 (Poor) to 70 (Mint State). A coin graded as "1" may be barely identifiable, while a "70" represents a flawless, mint-fresh coin with no visible imperfections under magnification. The Sheldon scale was based on the idea that a “70” would be 70 times more appealing than a “1” and is now the cornerstone of modern numismatic grading.
The Coin Grading Scale
As mentioned, the Sheldon Scale provides a numeric value corresponding to specific conditions. Some of the key scores are:
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Poor (P-1): Barely identifiable; heavily worn
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Good (G-4): Heavily worn but with key details visible
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Fine (F-12): Moderate to considerable wear; some detail remains
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Very Fine (VF-20 to VF-35): Moderate wear with bold details
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Extremely Fine (EF-40 to EF-45): Light wear on high points
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About Uncirculated (AU-50 to AU-58): Slight wear with full details
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UNCIRCULATED (MS-60 to MS62) Has no trace of wear but may show contact marks, and the surface may be spotted or lack some luster.
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CHOICE UNCIRCULATED (MS-63 to MS64): An above average Uncirculated coin that may be brilliant or lightly toned and has very few contact marks on the surface or rim.
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GEM UNCIRCULATED (MS-65 to MS69): An Uncirculated coin with high eye appeal. It may still display light toning and a few contact marks on the surface or rim.
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PERFECT UNCIRCULATED (MS-70) Perfectly new condition showing no trace of wear. The finest quality possible with no evidence of scratches, handling or contact with other coins.
Mint State (MS) vs. Proof Coins
Mint State (MS) coins are uncirculated coins intended for general release but never entered public circulation. They are graded on the Sheldon Scale from MS-60 to MS-70. Proof coins are made specifically for collectors using polished dies and planchets. Proofs often have mirrored fields and frosted devices, offering a sharp, high-contrast finish that stands apart from standard MS coins.
Uncirculated vs. Circulated Coins
Uncirculated coins have never been used publicly and retain their original luster and design detail. Circulated coins have passed between hands through commerce and often show visible wear, including surface scratches, discoloration, or worn edges. These distinctions are foundational in coin grading and help determine where a coin falls on the Sheldon Scale.
Coin Grading Companies
The rise of third-party grading companies began in the 1970s with the founding of the ANA Certification Service, also known as ANACS, in 1972. The two most prominent third-party coin certification services today, NGC and PCGS were founded in 1987 and 1986, respectively. PCGS would be the first to encapsulate graded coins by placing them in a plastic holder with a label that details information about the coin and its condition. After that, everything changed. Today, a multitude of cores, labels, and designations are available that allow collectors to enhance their collections even further.
The rise of third-party grading companies like PCGS and NGC has brought many positive changes to the hobby of coin collecting. Before such services were widely available, collectors just had to trust the information that the seller was giving them with little to no way to verify if that was true or not. Today, collectors rest assured knowing that their coins are not only authentic, but also guaranteed to be in the condition the grading service has arrived at.
The Numismatic Guaranty Company (NGC)
Beginning in 1987, NGC has grown to be the largest third-party grading service in the world. Certifying more than 60 million coins, NGC's renowned experts provide outstanding grading, authentication, and encapsulation services. Additionally, NGC coin grading offers a specialty service dedicated exclusively to certifying ancient coins.
Professional Coin Grading Service (PCGS)
Founded in 1986, PCGS has developed into a highly distinguished independent third-party grading service for collectors and precious metal enthusiasts around the world. Certifying over 44 million vintage and modern coins as of 2020, PCGS continues to offer top-quality grading services from industry experts.
What Are Graded Coin Holders?
NGC and PCGS offer a variety of unique holders adding personalization and style to many coins. As there are many series released each year with varying shapes and dimensions, it is necessary for third-party grading services to accommodate these releases with specially made holders. Additionally, both grading services offer a variety of themed and colorful cores or frames within their holders creating yet another way to personalize a collection.
What is on a Coin Label?
Graded coins not only arrive in a sonically sealed protective holder, each certified coin is also accompanied by a label displaying key information about the specific coin. Both PCGS and NGC offer their own assortment of labels that can be paired with a variety of coins giving each collector the opportunity to make the best selection for their collection.
How Coins Are Graded
Professional grading involves carefully examining individual coins using the naked eye and magnification. Experts assess luster, strike quality, surface preservation, and other minute features to determine a grade based on coin grading standards. Professional graders use specialized lighting, magnification, and other tools to highlight small features and catch imperfections.
Visual Inspection
The first step of the inspection is a visual inspection without any magnification. Graders look for general quality cues like wear on high-relief areas, abrasions, contact marks, and overall eye appeal. Even slight changes in texture or luster can influence the final coin grade.
Magnification Tools
Grading professionals use magnifiers (typically 5x or 10x) to detect fine details like micro-scratches, die-polishing marks, cracks, and mint errors. Magnification tools ensure every detail is scrutinized for consistency with coin grading standards. Higher-powered microscopes may also be used when authenticating rare or high-value coins. Combined with specialized lighting, magnification helps reveal surface anomalies that aren't visible to the naked eye.
Key Factors in Coin Grading
Professionals consider several main factors when grading a coin, including its appearance and how well collectors have maintained it. Coins are graded based on:
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Luster: The shine or reflectivity of the coin's surface
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Strike: How well the coin was struck by the dies, affecting the sharpness of details
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Surface Quality: Whether the coin has marks, scratches, or other imperfections
- Eye Appeal: How aesthetically pleasing the coin is as a whole
Luster and Shine
Luster refers to the reflective quality of a coin’s surface. Original mint luster is often the first feature to fade as a coin begins to circulate. Coins that hold a bright, unbroken luster earn higher coin grades.
Wear and Tear
Coins lose sharpness and detail as they circulate. Graders pay close attention to raised design elements that show signs of flattening, such as facial features, eagles’ wings, or mintmarks. Reduced wear equates to a higher grade.
Where to Get Your Coins Graded
Collectors can submit coins to professional services like NGC or PCGS for grading, typically by mailing the coins or working through an authorized dealer. Fees depend on the coin’s type and estimated grade and generally range from $20 to $100 per coin, with expedited services costing more. The turnaround time can vary from a few weeks to over a month, depending on the service tier and shipping method. Certified coins are sealed in tamper-resistant holders, ensuring long-term protection and longevity.
Buying Graded Coins from GOVMINT
GOVMINT offers a curated selection of professionally graded coins from trusted grading services like NGC and PCGS. Each coin is certified for authenticity and condition, helping collectors confidently build their collections. Visit GOVMINT today to view our extensive catalog of expertly graded coins.
References:
https://blog.money.org/coin-collecting/coin-grading-basics
https://www.pcgs.com/news/how-united-states-coins-are-graded
https://www.thesprucecrafts.com/coin-grading-made-simple-768384
https://www.govmint.com/coin-authority/post/should-i-buy-circulated-or-uncirculated-coins
https://www.coinworld.com/voices/modern-coin-wholesale-com/proof_vs_mint_state.html
https://www.govmint.com/coin-authority/post/how-is-a-proof-coin-different-from-a-regular-minted-coin
https://www.numismaticnews.net/collecting-101/the-sheldon-coin-grading-scale
https://www.ngccoin.com/coin-grading/grading-scale/
https://www.govmint.com/coin-authority/post/the-impact-of-coin-grading
https://www.govmint.com/coin-authority/post/the-importance-of-learning-to-grade-coins
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