Why You Need To Buy and Sell Gold Coins (Part 5)

Why You Need To Buy and Sell Gold Coins (Part 5)

by: Steve Renner

Grading coins

The condition of a coin is commonly summarized by a grade. Because the value of collectible coins often varies dramatically with grade and overly generous grading is not uncommon, reasonable grading proficiency is an important skill for collectors. The material presented here is intended only as an introduction to the subject. Grading is a skill that can only be developed over time through referrals to grading guides, consultation with experienced collectors and dealers, and lots of practice.

Published standards set objective criteria for grading, yet some amount of subjectivity is inevitable even expert graders will often assign slightly different grades to the same coin. While you can often ask an experienced grader for an opinion, being able to make your own reasonable assessment of grade is your best protection.

An overview of American Numismatic Association standards follows. ANA standards are widely used in the U.S. but are not the only system used. Much of the rest of the world uses the grades Fair, Fine, Very Fine, Extremely Fine, Uncirculated and Fleurdecoin.

Numerals used in coin grades have been taken from the Sheldon scale (see Glossary).

Uncirculated Coins

Coins with no wear at all are referred to as uncirculated or in mint state (MS). Grades from MS60 to MS70 in one point increments are used for mint state coins. Criteria include luster; the number, size and location of contact marks; the number, size and location of any hairlines, and the quality of the strike and overall eye appeal..

An MS60 coin may have dull luster and numerous contact marks in prime focal areas, as long as there is no wear. To merit MS65, a coin should have brilliant cartwheel luster (attractive toning is permissible), at most a few inconspicuous contact marks, no hairlines, and nearly complete striking details. Grades from MS61 to MS64 cover intermediate parts of this range. Truly exceptional coins may be graded MS66, MS67 or, if absolutely flawless, as high as the theoretical maximum of MS70. Many numismatists consider MS70 to be an unobtainable ideal.

Terms such as brilliant uncirculated (BU), choice BU, gem BU, select BU and premium BU are still used in lieu of numerical grades by some dealers, auctioneers and others. Correlations between these terms and the numeric MS grades are difficult at best, because of inconsistent usage and in some cases overgrading.

Market values for many uncirculated coins vary dramatically from one grade to the next. Remember that whether a coin is described with a numerical or an adjectival grade, itกs only someoneกs opinion. Until you are comfortable with your ability to grade uncirculated coins, make liberal use of other opinions, such as those available with slabbed coins or from experienced collectors and dealers you trust, or concentrate on circulated coins.

Circulated Coins

For circulated coins the grade is primarily an indication of how much wear has occurred and generally does not take into account the presence or absence of dings, scratches, toning, dirt and other foreign substances (though such information may also be noted).

ANA grading standards recognize 11 grades for circulated coins (listed here with brief, generic descriptions):

AU58, very choice about uncirculated: just traces of wear on a coin with nearly full luster and no major detracting contact marks

AU55, choice about uncirculated: small traces of wear visible on the highest points

AU50, about uncirculated: very light wear on the highest points; still has at least half of the original mint luster

EF45 or XF45, choice extremely fine: all design details are sharp; some mint luster remains, though perhaps only in กprotected areasก

EF40 or XF40, extremely fine: slightly more wear than a ก45ก; traces of mint luster may show

VF30, choice very fine: light even wear on high points, all lettering and design details are sharp

VF20, very fine: most details are still well defined; high points are smooth

F12, fine: major elements are still clear but details are worn away

VG8, very good: major design elements, letters and numerals are worn but clear

G4, good: major design elements are outlined but details are gone; for some series the date may not be sharp and the rim may not be complete.

AG3, about good: heavily worn; date may be barely discernable While coins more worn than AG are rarely collected, two additional grades are nevertheless used to characterize them:

F2, fair very heavily worn; major portions may be completely smooth

P1, poor, filler or cull barely recognizable While not included in the ANA standards, intermediate grades like AU53, VF35, F15 and G6 are used by some dealers and grading services. When a grader believes a coin is better than the minimum requirements but not nice enough for the next higher grade ก+ก or กPQก may be included (e.g. MS64PQ or VG+) or a range may be given (e.g. FVF).

Split Grades

When there are significant differences between the obverse and reverse sides, a split grade may be assigned. Split grades are denoted with a ก/ก. For example, กF/VFก means that the obverse is F and the reverse is VF.

The overall grade is often determined by the obverse. An intermediate value may be appropriate when the difference is significant, especially if the reverse is lower. A coin graded MS60/61 would be considered to have an overall grade of MS60, and another at MS65/63 could be considered to have an overall grade of MS64.

About The Author

Steve is the ceo of cashgcardsgoldlynks rare/gold coin club he was the best isp in 1997 check out his about us page at http://goldlynks.tripod.com this article is free for distribution

[email protected]

This article was posted on April 21

by Steve Renner