why you need to buy and sell gold coins(part 5)

Grading coinsCirculated Coins
The condition of a coin is commonly summarizedFor circulated coins the grade is primarily an
by a grade. Because the value of collectible coinsindication of how much wear has occurred and
often varies dramatically with grade and overlygenerally does not take into account the presence
generous grading is not uncommon, reasonableor absence of dings, scratches, toning, dirt and
grading proficiency is an important skill forother foreign substances (though such information
collectors. The material presented here is intendedmay also be noted).
only as an introduction to the subject. Grading is aANA grading standards recognize 11 grades for
skill that can only be developed over time throughcirculated coins (listed here with brief, generic
referrals to grading guides, consultation withdescriptions):
experienced collectors and dealers, and lots ofAU-58, very choice about uncirculated: just traces
practice.of wear on a coin with nearly full luster and no
Published standards set objective criteria formajor detracting contact marks
grading, yet some amount of subjectivity isAU-55, choice about uncirculated: small traces of
inevitable -- even expert graders will often assignwear visible on the highest points
slightly different grades to the same coin. WhileAU-50, about uncirculated: very light wear on the
you can often ask an experienced grader for anhighest points; still has at least half of the original
opinion, being able to make your own reasonablemint luster
assessment of grade is your best protection.EF-45 or XF-45, choice extremely fine: all design
An overview of American Numismatic Associationdetails are sharp; some mint luster remains,
standards follows. ANA standards are widely usedthough perhaps only in \"protected areas\"
in the U.S. but are not the only system used.EF-40 or XF-40, extremely fine: slightly more
Much of the rest of the world uses the gradeswear than a \"45\"; traces of mint luster may
Fair, Fine, Very Fine, Extremely Fine, Uncirculatedshow
and Fleur-de-coin.VF-30, choice very fine: light even wear on high
Numerals used in coin grades have been takenpoints, all lettering and design details are sharp
from the Sheldon scale (see Glossary).VF-20, very fine: most details are still well defined;
Uncirculated Coinshigh points are smooth
Coins with no wear at all are referred to asF-12, fine: major elements are still clear but details
uncirculated or in mint state (MS). Grades fromare worn away
MS-60 to MS-70 in one point increments are usedVG-8, very good: major design elements, letters
for mint state coins. Criteria include luster; theand numerals are worn but clear
number, size and location of contact marks; theG-4, good: major design elements are outlined but
number, size and location of any hairlines, and thedetails are gone; for some series the date may
quality of the strike and overall eye appeal..not be sharp and the rim may not be complete.
An MS-60 coin may have dull luster and numerousAG-3, about good: heavily worn; date may be
contact marks in prime focal areas, as long asbarely discernable While coins more worn than AG
there is no wear. To merit MS-65, a coin shouldare rarely collected, two additional grades are
have brilliant cartwheel luster (attractive toning isnevertheless used to characterize them:
permissible), at most a few inconspicuous contactF-2, fair -- very heavily worn; major portions may
marks, no hairlines, and nearly complete strikingbe completely smooth
details. Grades from MS-61 to MS-64 coverP-1, poor, filler or cull -- barely recognizable While
intermediate parts of this range. Truly exceptionalnot included in the ANA standards, intermediate
coins may be graded MS-66, MS-67 or, ifgrades like AU-53, VF-35, F-15 and G-6 are used
absolutely flawless, as high as the theoreticalby some dealers and grading services. When a
maximum of MS-70. Many numismatists considergrader believes a coin is better than the minimum
MS-70 to be an unobtainable ideal.requirements but not nice enough for the next
Terms such as brilliant uncirculated (BU), choicehigher grade \"+\" or \"PQ\" may be included (e.g.
BU, gem BU, select BU and premium BU are stillMS64PQ or VG+) or a range may be given (e.g.
used in lieu of numerical grades by some dealers,F-VF).
auctioneers and others. Correlations betweenSplit Grades
these terms and the numeric MS grades areWhen there are significant differences between
difficult at best, because of inconsistent usage andthe obverse and reverse sides, a split grade may
in some cases overgrading.be assigned. Split grades are denoted with a \"/\".
Market values for many uncirculated coins varyFor example, \"F/VF\" means that the obverse is
dramatically from one grade to the next.F and the reverse is VF.
Remember that whether a coin is described withThe overall grade is often determined by the
a numerical or an adjectival grade, it\'s onlyobverse. An intermediate value may be
someone\'s opinion. Until you are comfortable withappropriate when the difference is significant,
your ability to grade uncirculated coins, makeespecially if the reverse is lower. A coin graded
liberal use of other opinions, such as thoseMS-60/61 would be considered to have an overall
available with slabbed coins or from experiencedgrade of MS-60, and another at MS-65/63 could
collectors and dealers you trust, or concentratebe considered to have an overall grade of MS-64.
on circulated coins.