How to Grade American Coins
Many factors--not just the outward appearance--determine the grade of an American coin. The date, surface appearance and other qualities combine to give the coin a rating on the Sheldon Scale, the grading system sanctioned by serious numismatists worldwide. Whether you collect pennies from vending machines, Mercury dimes or gold dollars, the grading process will help you determine the coin's price and ultimate value to collectors.
Instructions
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Learn the specifics of the grading system. American coins receive a grade from MS (mint state) to P (poor). A mint state coin has never been used or circulated in public, while a poor coin has seen plenty of action. After assigning a letter grade, a coin receives a number grade, from 1 to 70. The worst coin ranks a P1, the finest an MS70.
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Gather instruments to grade the coins. You'll need a lamp with a 100-watt lightbulb, latex gloves and a 5x to 8x magnifier. For more detailed inspection, buy a battery-powered magnifier or coin scale from an online store specializing in optical tools for numismatists.
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View how the coin's surface reflects light. Coin collectors refer to this as luster, and it's one of the three key components that determine a coin's condition and value. In its purest form, a coin retains mint luster from the minting process and has a diffused, frosty appearance. Older coins give off a dull sheen when lit or magnified, the result of years of use or cleaning. Rate the coin's luster on a scale of 1 to 5; provide separate ratings for each side of the coin.
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Select a surface preservation grade. This refers to marks, nicks, gouges or any inconsistencies on the coin's surface. Look for hairlines from poor cleaning or mishandling, bag marks from friction caused during transport, and scratches. Rate the coin's surface preservation on a scale of 1 to 5; provide separate ratings for each side of the coin.
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Determine the amount of visual appeal. Grade the coin for color and tone. If the coin looks clean and bright and retains the outline and shape of the eagle, flag, or liberty head from the initial plating, mark it for eye appeal. Rate the coin's visual appeal on a scale of 1 to 5; provide separate ratings for each side of the coin.
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Check the coin's strike. Every coin stamped at the mint has a distinctive strike or sharpness to it, depending on the strength of the images punched onto the blank. Rate the coin's strike on a scale of 1 to 5; provide separate ratings for each side of the coin.
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Combine the grades for luster, eye appeal and strike for the obverse and reverse of the coin. Multiply the grade for surface preservation for each side of the coin by two, then add that number to the rest to determine the numerical portion of the grade. A perfect, mint state coin will rate a 25 on each side, which translates to a 70 on the Sheldon Scale. See the link under Resources for a table that shows how grades correspond to the Sheldon Scale.
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