How to Grade a Coin

Grading a coin is the process by which its value is determined and set. The grade of a coin is an important tool to both sellers and collectors of coins. If you are a coin collector or have coins to sell, you should know how to grade a coin.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Coin grading guide

Learn How to Grade a Coin

1. Understand what characteristics of a coin influence its grade. Things like surface condition, strike, eye appeal and luster are all factors in determining a coin's grade. If any of these things are lacking, the grade of the coin goes down. As a coin's grade drops, so does its value.
2. Develop an eye for detail. Sometimes, the differences in quality among coins are so subtle as to be hardly noticeable. It takes a trained eye to tell the difference in luster between coins, for example. Take some time to thoroughly examine many different coins until you can distinguish the fine details that make a difference in grade.
3. Distinguish between Mint, Almost Uncirculated and Extremely Fine. These are the highest grades of coin. A Mint coin is absolutely perfect in every way (and as such, is almost impossible to find--even uncirculated rolled coins are not graded as Mint). Almost Uncirculated has only the slightest traces of wear on the highest points of the coin. Extremely Fine has noticeable wear, but it is very minimal.
4. Hold your coins up to the light to look for wear. On a Mint coin, there will be none. The wear on an Almost Uncirculated coin is so slight that you will have to practice a few times to learn to notice it. If the light reflects differently off of certain parts of the coin than other parts, then that is a sign of wear. An Extremely Fine coin may have a few worn parts that you can see without close scrutiny but they will not take away from the beauty of the coin.
5. Become familiar with Very Fine, Fine and Very Good coins. These are the medium-range grades. Very Fine coins have moderate wear, usually on the smaller details of the stamped image (such Thomas Jefferson's hair on a nickel). On a Fine coin, the majority of details will have been rubbed off, but the main part of the design is still intact. On a Very Good coin, most of the design is gone, but the raised rim around the edge is still present.
6. Know how to recognize Good, Almost Good and Fair coins. These are the lower grades of coin. Most of the design and all the details will be missing from a Good coin, but you can still see the date. On an Almost Good coin, the date should also be visible, but may be difficult to read (as it is becoming worn). Fair coins have structural damage, such as heavy scratching and bent edges, while little to none of the original design remains discernible.
7. Spot a Basal coin. A Basal coin is the lowest grade of coin. Basal coins are pieces of metal that still retain a coin-like shape. No other features about it serve to identify it as a coin.

Tips & Warnings

• You can find entire guides on how to grade coins available for free on the Internet. A particularly comprehensive and informative coin grading guide can be found at CoinGrading.com (see Resources below).
• If you want a coin graded fast and are concerned about your own ability to do it accurately, a professional coin grader is a smart option. (Many coin dealers will also do this for you--some charge a fee, while others do not.)
• Watch out for counterfeits, which are more common in the coin collecting world than you would expect. When in doubt about a coin's authenticity, be sure to take it to an expert for appraisal. The value of your coin collection and your reputation in the coin collecting community could be at stake.