Grading Coins: Finding the Value in Your Coin Collection
One of the most important factors in determining the value of a coin to a coin collector is its grade. This factor is a way for collectors to quickly ascertain the condition, and therefore the value of the coin. The higher the coin's grade, the greater the value, since the condition is better. This system was developed over time to provide coin enthusiasts with a way to communicate effectively and succinctly the overall value of the coins being inspected.
Certain characteristics of a coin can influence its grade. Such things as the surface condition, strike, the eye appeal and even the overall luster contribute to determining the grade of the coin. If any of these qualities are lacking, such as the surface condition of the coin being faded or deteriorated, the value, and therefore the grade of the coin decreases. Because the differences in quality among the coins can be extremely subtle, it can take a trained eye to notice the differences and assign the coin the proper grade. Like any other system based on observation, there is some subjectivity is inherent. Often, more than one expert grader will give the same coin different grades. The actual grade of the coin therefore is truly in the eye of the beholder.
Although having an expert determine the grade of the coin is desirable, finding such a coin expert isn't always practical. Thankfully, a beginner can come close to approximating the grade of treasured coin with a few simple guidelines. These guidelines are presented by the American Numismatic Association, and consist of a point numeric system ranging from 0 to 70.
Uncirculated coins are given the highest grade, and are often referred to as the mint state of the coin. These nearly perfect coins are given a numeric value of between 70 and 60 by the American Numismatic Association. At the level of 70, the coins are in true mint condition, without trace of wear, scratches, evidence of handling or evidence of contact with coins. A score of 60 indicates that there is no trace of wear, but may show a few contact marks, or the surface may be spotted, or lackluster. Essentially as the coin overall condition decreases, the numeric value also decreases.
Specific categories in this system include Choice about Uncirculated or AU-55, which refers to a coin that has less than trace wear on the highest points of the design, and has no other defects, and has retained its luster. Next is About Uncirculated, and has at least half of the original mint luster, and has trace wear on the highest areas of the design. Both these designations often have numeric values of between 60 and 70. Extremely Fine, or EF-40 has noticeable wear, but still retains its sharp features. From this point, the grades attributed to the coins decrease from Very Fine, to Fine, then Very Good, Good, to About Good.
Damage of any kind, like holes, edge dents, former repairs, re-engraving, gouges, and even evidence of cleaning can decrease the value of a coin. Often, coins are cleaned or polished in an attempt to pass them off as higher grades or as uncirculated strikes. However, the scratches and marks of abrasions commonly seen after a cleaning episode can significantly decrease the value of the coin. On occasion, the condition of one side of the coin is very different from the other. When this occurs, a split grade may be assigned. This is indicated by a slash in between the two grades, such as "AU/EF or V/VF.
Often the condition and grade of a coin can be determined through careful observation of the coin as well as adherence to the specified guidelines. While getting an expert opinion is always a good idea, a coin collector can still get a basic idea of the coins value by using the guidelines set forth by the American Numismatic Association.
