How to Grade Coins: Complete Beginner's Guide
Learn to grade coins using the Sheldon 1-70 scale. Understand every grade from Poor to Mint State 70.
Coin grading is the process of evaluating a coin's condition on a standardized scale. The grade of a coin is the single most important factor in determining its market value — the same coin can be worth $10 in low grade and $10,000 in high grade. Learning to grade coins accurately is an essential skill for any collector or seller.
The Sheldon Scale, developed by Dr. William Sheldon in 1949, assigns a numeric grade from 1 (Poor) to 70 (Perfect Mint State). Originally created for large cents, it was adopted by the entire numismatic community in the 1970s and is now the universal standard used by PCGS, NGC, and all major dealers.
The Sheldon Grading Scale (1-70)
Poor to About Good
Poor (P-1)
The coin is barely identifiable as to type. The date may be partially or fully worn away. The outline of the design is faintly visible but almost all detail is gone. The coin may be bent, corroded, or heavily damaged. This is the lowest possible grade — the coin is only identifiable by its shape, size, and general design type.
Fair (FR-2)
The coin is heavily worn but the type is clearly identifiable. The date and mint mark may be partially readable, though they could be very weak. Some design elements are visible as outlines only. The rim may be worn into the lettering in places.
About Good (AG-3)
Very heavily worn with the outline of the design clearly visible. The date is readable but may be weak at the edges. The rim is worn down into the tops of some lettering. Major design elements are visible as silhouettes. This is the minimum grade most collectors will accept for rare dates.
Good to Very Good
Good (G-4 / G-6)
The major design elements are visible but flat, with almost no fine detail remaining. The date and mint mark are clear. The rim is complete but may be worn smooth in places. On a Morgan Dollar, Liberty's hair is outlined but shows no strands. On a Walking Liberty Half, the motto may be partially worn away. G-6 shows slightly more detail than G-4, particularly in the rim and secondary design features.
Very Good (VG-8 / VG-10)
The design is clear with some fine detail beginning to show. On lettered edges, all letters are complete. Main design features show moderate wear but are well defined. A few high-point details are visible. On a Morgan Dollar, a few hair strands over the ear are visible. On a Lincoln Cent, the cheekbone and jawline are clearly defined. VG-10 shows slightly more detail, particularly in the hair and secondary features.
Fine
Fine (F-12 / F-15)
Moderate to considerable even wear across the entire design. All lettering and major features are sharp. Some mint luster may remain in protected areas. The high points of the design are flat but detailed. On a Morgan Dollar, about half the hair detail above the ear and forehead is visible. On a Walking Liberty Half, the skirt lines are visible but worn at the center. F-15 shows slightly more detail in the hair and other high points.
Very Fine
Very Fine (VF-20 / VF-25 / VF-30 / VF-35)
Light to moderate wear on the high points. All design details are clear and sharp. The fields (flat areas) may show light wear but the overall appearance is pleasing. On a Morgan Dollar, the hair above the ear and the cotton bolls show clear detail. On a Lincoln Cent, Lincoln's cheek and jawline show only slight flattening. The progression from VF-20 to VF-35 reflects decreasing amounts of high-point wear: VF-20 shows definite wear on high points, while VF-35 shows only light wear with nearly full detail remaining.
Extremely Fine
Extremely Fine (EF-40 / EF-45)
Light wear on only the highest points of the design. All design details are sharp and clear. Traces of mint luster may be visible in protected areas near the devices and lettering. On a Morgan Dollar, all hair detail is visible with slight wear on the highest waves and the eagle's breast feathers. On a Walking Liberty Half, Liberty's hand shows slight wear and the head of the eagle shows light flattening. EF-45 (also called Choice Extremely Fine) shows less wear than EF-40, with more remaining luster.
About Uncirculated
About Uncirculated (AU-50 / AU-53 / AU-55 / AU-58)
Traces of wear are visible on the highest points only. The coin retains much or most of its original mint luster. AU-50 shows obvious traces of wear on the high points with about half of the original luster remaining. AU-53 shows wear on the high points with perhaps 60% luster. AU-55 shows only slight wear on the very highest points with approximately 75% of the original luster intact. AU-58 is nearly indistinguishable from Mint State — wear is visible only on the very tip of the highest point, and about 90-95% of the original luster remains. The difference between AU-58 and MS-60 can represent a significant price jump for many coins.
Mint State (Uncirculated)
Mint State (MS-60 to MS-70)
No wear whatsoever. The coin has never circulated. The differences between Mint State grades are based on the number and severity of contact marks (bag marks), the quality of the strike, the luster, and overall eye appeal.
MS-60 to MS-62 (Basal Mint State)
No trace of wear, but the coin may have many heavy contact marks, hairlines, or other detractions. Luster may be impaired. MS-60 is the minimum Uncirculated grade — the coin simply has no wear. MS-61 and MS-62 show progressively fewer marks and slightly better eye appeal.
MS-63 (Choice Mint State)
An attractive coin with moderate distracting marks or minor blemishes. Luster is above average. This is the most common Mint State grade for many coin types and represents good value for collectors who want an uncirculated coin without paying Gem premiums.
MS-64 (Near Gem)
A coin with a few scattered marks, none of which are in the prime focal areas (such as Liberty's cheek on a Morgan Dollar). Strong luster and good eye appeal. MS-64 coins often represent excellent value — significantly cheaper than MS-65 but very attractive.
MS-65 (Gem Mint State)
Strong luster, good strike, and very light contact marks not immediately distracting. The coin has outstanding eye appeal. MS-65 is the grade where premiums begin to accelerate sharply. For many coin types, the price jump from MS-64 to MS-65 is substantial — often 2-5x or more.
MS-66 to MS-67 (Superb Gem)
An above-average strike with full, vibrant luster and no more than two or three minor contact marks. The coin is essentially pristine with outstanding eye appeal. MS-67 coins are rare for most types and command strong premiums. For 19th-century coins, MS-67 examples may be virtually unobtainable.
MS-68 to MS-69 (Ultra Gem)
Near perfection. Only the slightest imperfection visible under magnification. Full strike, blazing luster, exceptional eye appeal. These grades are typically only achievable by modern coins struck with modern minting technology. For classic US coins, MS-68 and above are exceedingly rare population-report toppers.
MS-70 (Perfect)
Absolutely perfect under 5x magnification. No marks, no hairlines, full strike, perfect luster. This grade is essentially unattainable for pre-1950 coins and remains rare even for modern issues. An MS-70 coin is the finest possible example — flawless in every respect.
Professional Grading Services
Professional third-party grading (TPG) services authenticate and grade coins, then encapsulate them in tamper-evident holders ("slabs") with a unique certification number. The two dominant services are:
PCGS (Professional Coin Grading Service)
- Founded 1986 — the first major TPG service
- Generally commands highest resale prices for US coins
- Economy tier: $22/coin (45+ business days)
- Regular tier: $40/coin (15 business days)
- Express tiers: $75-$300/coin (2-10 business days)
- Annual membership required ($69-$249/year)
NGC (Numismatic Guaranty Corporation)
- Founded 1987 — strong reputation for world coins
- Competitive with PCGS for most US coins
- Economy tier: $22/coin (45+ business days)
- Standard tier: $38/coin (20 business days)
- Express tiers: $65-$300/coin (2-10 business days)
- Annual membership required ($25-$149/year)
When Is Professional Grading Worth It?
- Generally worth it when the coin's raw value exceeds $100-$200 and you plan to sell it. The grading fee is a small percentage of the coin's value, and slabbed coins typically sell for more.
- Definitely worth it for key dates, rare varieties, and high-grade coins. Authentication alone justifies the cost — many key date coins have common counterfeits.
- Usually not worth it for common coins in circulated grades. A common-date Morgan Dollar in VF-20 is not worth the $22+ grading fee since the raw coin trades near melt value.
- Consider crossover if you already have a coin in one service's holder but want it in the other. Both PCGS and NGC offer crossover services.
Tools You Need for Grading at Home
10x Jeweler's Loupe (Essential)
A quality 10x triplet loupe is the most important grading tool. PCGS and NGC both grade coins at 5x magnification, but a 10x loupe helps identify surface issues, die varieties, and authenticity markers. A good loupe costs $15-$40. Avoid cheap plastic loupes — invest in a glass triplet lens for clarity.
Proper Lighting (Essential)
Use a single-point light source (a desk lamp with a daylight LED bulb works well). Hold the coin at various angles to reveal surface marks, luster breaks, and wear. Overhead fluorescent lighting hides detail. Natural daylight is excellent for assessing color and toning but can mask surface marks.
Grading Reference Books (Recommended)
The "Official ANA Grading Standards for United States Coins" provides photographs and descriptions for every grade of every major US coin type. The Photograde book by James Ruddy is another excellent visual reference. Online resources like PCGS Photograde are free and accessible.
Soft Surface & Cotton Gloves (Essential)
Always handle coins over a soft surface (a velvet pad or folded towel) to prevent damage if dropped. Wear cotton or nitrile gloves to avoid transferring oils from your fingers. Hold coins by the edges only — never touch the obverse or reverse surfaces.
Digital Scale (Helpful)
A precision scale accurate to 0.01 grams helps detect counterfeits and identify composition varieties. Many counterfeits have incorrect weight. A good digital scale costs $15-$30 and is useful for authenticating valuable coins before sending them for professional grading.
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