Thursday Terminology - 1 - Coin Grading Terms

 COIN GRADING TERMS

I thought that it would be nice to start this first series of posts with something that is quite basic and something that needs to be learned by most, if not, all collectors of numismatic products; Grading Terms.  The various grades that coins fit into are the quintessential facts that determine a coin's value.  Knowing the terms is essential if you plan on becoming a numismatic investor, or if you plan of giving your collection an honest appraisal, they also help you understand what the values mean in coin catalogs.   Coin valuation terms are listed usually from the lowest to the highest grade possible with a numerical value given to the show its degree of quality within each category.  These numbers were established by the American Numismatic Society, and thus are the standard for most collectors.  I should also state that not all numismatists use the following coin grading system, many European countries have their own grading system, but this is what is followed in the United States and Canada.  The following are the most basic of terms that every beginner should know and understand.


Coin Valuation Terms From Lowest to Highest:

Poor (PO, PR) - 1 = The lowest grade possible, meaning that the coin is very worn or even damaged to a high extent, a coin in this grade would have to be exceptionally rare if it were to be collected. Usually 0-1% of the design is remaining in this grade.

Fair (FA, FR) - 2 = The second lowest grade, still very worn, very slight difference between Poor and Fair, you really need to be a professional to see these differences, coin is still undesirable for typical collectors.  Coins will have 2-4% of the design remaining.

About Good (AG) - 3 = The third lowest grade, very worn, and the difference is still slight between Poor, Fair and About Good, as mentioned before, you will likely have to be a professional to recognize the difference in such obscure grades.  You will find that more than 5% but less than 10% of the design is remaining in this grade.

Good (G) - 4, 6 = The fourth lowest grade, probably the lowest grade that a collector would buy a coin it, it will still be very word, but yet still collectible.  This will likely be the lowest grade you would find in any numismatic catalog, if they start here that is.  Usually only 10% of the design will be remaining.

Very Good (VG) - 8, 10 = Another low grade, but many collectors will purchase coins in this grade, many catalogs either start at this grade or at Good.  Around 25% of the design is remaining in this grade.

Fine (F) - 12, 15 =  This grade is low, but it is likely to be collectible as you begin to see many of the details of the coin.  World Coin catalogs published by Krause Publications usually start here.  Here you find about 50% of the design remaining on the coin.

Very Fine (VF) - 20, 25, 30, 25 = This is where you typically seen many coins that have been in circulation for about 10-15 years, they are worn but you can still see much of the finer detail, usually hairlines and other lines that usually get worn off by typical handling of the coin and circulation.  These coins are very collectible and even rare coins fetch a high price in this grade.  75% of the coin design will be intact.

Extremely Fine (XF, EF) - 40, 45 = This grade will look somewhat worn, but also somewhat new, much like a Statehood Quarter that has been in circulation for about 1-2 years. Highly collectible, coins will usually command a good price in this grade.  Usually 90% of the coin design is found to be intact. 

About/Almost Uncirculated (AU) - 50, 53, 55, 58 = Coins found in this grade look like they're almost uncirculated, as the name suggests, they usually have a few dings and bag marks on them and the luster of the coins will have diminished only slightly.  Great coins to collect and to preserve in coin albums.  Here the coin will have 95% of the coin design intact with some luster to be found from the original minting of the coin.


Mint State (MS) - 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70 = These coins are uncirculated and have never seen the grimy and oil laden hands of people.  Any coin that is found in this grade is highly collectible, command far higher prices than any other coins and if graded by a professional, it will usually have a nice price tag.  Keep in mind that MS-70 is the highest grade, and coins found in this state are very rare and need to be perfect in every sense of the word!

** It should be noted that within the category of Mint State are two subcategories that divide the 60-70 numerical values in half:

Uncirculated (UNC) - 60, 61, 62, 63, 64 = The coin will be  100% intact but the luster will vary depending on the quality of the dies that coin was minted on or if bag marks are present on the coin.  Many, if not most coins that are sold online by non-professional vendors of coins will give a coin the general grade of UNC without a numerical value as they are only telling you that the coin has never been in circulation and that the grade of the coin is up to you to find out.

Brilliant Uncirculated (BU) - 65, 66, 67, 68, 69 70 = This coin will also be 100% intact and usually with full and complete luster.  You will find very few bag marks or other small scratches on the coin at this grade.

Proof (PR) - This is a coin that was designed only for collectors and thus was not intended for circulation.  A proof coin can have a numerical value if it is graded under the Mint State category, otherwise, coins produced in proof condition will generally only say proof with no numerical value, this is the final grade of a coin, but keep in mind that it may not be the highest grade unless it was graded under Mint State.