Grading coins. It is a major part of the numismatic hobby. If you are a dealer, a buyer, a seller, a collector, it is imperative that you have a better than average grasp of the way coins are graded, how they are graded, and why. But have you ever wondered where the basis of those grades come from? It is based on something called the Sheldon Scale and we are here to drop the basics on the de facto standard of grading coins today.
Grading Coins - Before and Now
Developed by Dr. William Sheldon in 1949, the 70-point scale is used by third party grading services like NGC and PCGS when assigning a grade to a coin. The scale has been slightly modified to be the standard for coin grading today. Prior to the arrival of the Sheldon Scale, the adjectival grading system was used to describe a coin’s condition. The terms such as “good”, “fine”, and “uncirculated” were all that were relied on. Parts of the adjectival system are still used today in grading as a form of enhancement when describing a more precise form of the coin like “Good 4” or “Fine 12”.
Sheldon Scale
Below are the specifics of the Sheldon Scale and what is used today:
Poor-1 or P-1 (Poor): This type is barely distinguishable due to the coin being badly damaged or worn to the point of smooth.
Fair-2 or FR-2 (Fair): The type and the date are barely noticeable but other than those key things, the coin is still very damaged or extremely worn.
AG-3 (About Good): The type and date are distinguishable in this grade, but there are parts that are worn.
G-4 (Good): There are major features that are clear and evident as outlines but the coin is, in the grand scheme of things, still heavily worn.
G-6 (Good+): The coin has a fully discernible rim plus major features are clearly outlined. There is still heavy wear on the coin as well.
VG-8 (Very Good): There is a full rim with clear features. Most of the legends (or writing) are readable but there is still significant wear.
F-12 (Fine): The rim is clear and legends are clearly readable. The features are starting to show some detail but the coin is still moderately worn.
VF-20 (Very Fine): The legends are clearly readable but slightly worn while the features show good detail and the rims are clean. The coin as a whole has moderate wear on the higher spots and a little wear below.
VF-30 (Good-Very Fine): The legends are clear and the features show detail with very little wear. The higher points are worn.
EF-40 (Extremely Fine): The legends are sharp and the features are clear with slight wear on the higher points.
XF-45 (Choice Extremely Fine): The features are clear and sharp with the legends reading clear and sharp as well. There is slight wear on the high points in addition to
AU-50 (About Uncirculated): The legends are sharp and the features only show a trace of wear on the higher points. There must be a remnant of mint luster.
AU-55 (Good-About Good Uncirculated): The legends are sharp and the features show just a hint of wear on the high points. There must be a remnant of mint luster on at least half the coin with the addition of great eye appeal.
AU-58 (Choice-About Uncirculated): This is practically uncirculated except for minor wear on high points. Nearly the whole coin must have mint luster and must have outstanding eye appeal.
MS60 (Mint State Basal): Coins in this grade are in mint condition and free from wear even though they might have bag marks, are ugly, toned or are dinged up.
Any grades from MS60 to MS70 as well as proof designations (they are not a grade but a type) are all based on eye appeal and the quality of luster or toning. The presence or absence of contact marks, hairlines, etc is also the basis. MS60 coins and higher are designated mint state coins.