Grading Guide
Grading is the standardised assessment of a coin or banknote's condition. It's the single most important factor in determining value beyond the base metal content. This guide covers the major grading systems used worldwide.
How grading works
Coin grading evaluates several factors: the amount of wear from circulation, the quality of the original strike, the presence of marks or scratches, and overall eye appeal. A higher grade means better preservation, sharper details, and — almost always — higher market value.
Two main grading systems are used internationally. The Sheldon numeric scale (1–70) is the standard in the US and is used by the major grading services worldwide. The British descriptive system uses word-based grades like "Fine" or "Extremely Fine" and remains common in UK and European collecting.
The Sheldon scale (1–70)
Originally developed by Dr. William Sheldon in 1949 for US large cents, the Sheldon scale is now the universal standard for coin grading. The scale runs from 1 (barely identifiable) to 70 (absolutely perfect). The major grading services — PCGS, NGC, and ANACS — all use this system.
The scale is not continuous below 60. Certain numbers in the circulated range are skipped because the differences would be too subtle to reliably distinguish.
Circulated grades (1–58)
| Grade | Name | Description |
|---|---|---|
| PO-1 | Poor | Barely identifiable. Date and type can be determined but little else. Heavily worn and possibly damaged. |
| FR-2 | Fair | Heavily worn but major design elements are visible. Some detail at the rims. |
| AG-3 | About Good | Very heavily worn. Outline of the design is clear. Most lettering is readable. Rims are worn into the design. |
| G-4, G-6 | Good | Major design elements are visible but flat. Peripheral lettering nearly complete. Rims may be worn but present. |
| VG-8, VG-10 | Very Good | Design is clear but flat in areas. All lettering is visible. Some detail beginning to show in the design. |
| F-12, F-15 | Fine | Moderate to heavy even wear across the entire design. All lettering is sharp. Some detail in the recessed areas. |
| VF-20 to VF-35 | Very Fine | Light to moderate wear on the high points. All design details are visible though some are soft. An attractive coin. |
| EF-40, EF-45 | Extremely Fine | Light wear on the highest points only. All design details are sharp and clear. Traces of original mint lustre may be visible. |
| AU-50 to AU-58 | About Uncirculated | Slight wear on the very highest points. Significant mint lustre remains. AU-58 shows wear only on the absolute highest points and approaches Mint State appearance. |
Uncirculated grades (60–70)
A coin graded 60 or above has never circulated. The differences between grades in this range come down to the number and severity of contact marks, the quality of the strike, and overall eye appeal — not wear.
| Grade | Description |
|---|---|
| MS/PF 60 | No wear, but may have many heavy marks, scratches, and reduced lustre. The entry point for uncirculated. |
| MS/PF 61 | No wear. Numerous marks and blemishes, possibly weak strike in areas. |
| MS/PF 62 | No wear. Slightly above average with noticeable marks and blemishes. |
| MS/PF 63 | Moderate marks and blemishes. Average strike. Acceptable lustre. |
| MS/PF 64 | Average or better strike. Several obvious marks but fewer than 63. Good lustre. |
| MS/PF 65 | Well struck with moderate marks or hairlines. Strong lustre and good eye appeal. A major quality threshold — often called "Gem." |
| MS/PF 66 | Well struck with minimal marks. Very strong lustre and eye appeal. |
| MS/PF 67 | Sharply struck with only a few minor imperfections. Exceptional lustre. A superb coin. |
| MS/PF 68 | Very sharply struck with only the most minuscule imperfections. Outstanding. |
| MS/PF 69 | Nearly perfect. Full strike. Nearly imperceptible imperfections only visible at 5x magnification. |
| MS/PF 70 | Perfect. No imperfections visible at 5x magnification. Full strike, full lustre. The highest possible grade. |
British grading system
The British system uses descriptive terms rather than numbers. It predates the Sheldon scale and is still widely used in UK and European coin markets. The terms roughly correspond to Sheldon scale ranges.
| British grade | Sheldon equivalent | Description |
|---|---|---|
| Poor (P) | PO-1 | Barely identifiable. |
| Fair (Fr) | FR-2 to AG-3 | Very heavily worn, major features visible. |
| Good (G) | G-4 to G-6 | Design visible but worn flat. |
| Fine (F) | F-12 to F-15 | Moderate wear. All lettering sharp. |
| Very Fine (VF) | VF-20 to VF-35 | Light wear on high points. Details clear. |
| Extremely Fine (EF) | EF-40 to EF-45 | Minimal wear. Sharp details. Some lustre. |
| About Unc. (AU) | AU-50 to AU-58 | Trace wear only. Substantial lustre. |
| Uncirculated (Unc) | MS-60 to MS-63 | No wear. May have bag marks. |
| Brilliant Unc. (BU) | MS-63 to MS-65 | No wear. Full lustre. Few marks. |
| Fleur de Coin (FDC) | MS-65+ | Exceptional quality. Perfect or near-perfect preservation. |
Sub-grades are expressed with qualifiers: "About" (just below), "Nearly" (slightly below), and "Good" (just above). For example, "Good Very Fine" (GVF) sits between VF and EF, while "About Fine" (AF) sits between Good and Fine.
NGC and PCGS grading
NGC (Numismatic Guaranty Company) and PCGS (Professional Coin Grading Service) are the two most widely recognised third-party grading services. Both use the Sheldon scale but add a two-letter prefix to indicate how the coin was produced.
Strike type prefixes
| Prefix | Meaning | Use |
|---|---|---|
| MS | Mint State | Coins struck for circulation in standard production. Grades 60–70. |
| PF (or PR) | Proof | Coins struck using the proof process (polished dies and planchets, multiple strikes). Grades 60–70. |
| SP | Specimen | A coin better than standard issue but not a full proof. Uncommon. |
So "MS-65" means a Mint State coin graded 65, while "PF-69" means a Proof coin graded 69. The numbers follow the same 60–70 quality scale.
Special designations
Beyond the numeric grade, NGC and PCGS assign additional designations that describe surface quality, eye appeal, or release timing.
| Designation | Meaning |
|---|---|
| + (Plus) | The coin is at the high end of its assigned grade, approaching the next grade level. An MS-64+ is nearly MS-65. |
| ★ (Star) | Exceptional eye appeal for the grade. A coin that looks better than its numeric grade would suggest. |
| Ultra Cameo / DCAM | Proof coins with deeply mirrored fields and heavily frosted raised design. The most desirable proof appearance. NGC uses "Ultra Cameo," PCGS uses "DCAM" (Deep Cameo). |
| Cameo / CAM | Proof coins with mirrored fields and moderate frosting on the design. Less contrast than Ultra Cameo. |
| DPL | Deep Prooflike. A business-strike coin (not a proof) with deeply mirrored fields resembling a proof. |
| PL | Prooflike. A business-strike coin with somewhat mirrored fields. |
| RD / RB / BN | For copper coins: Red (full original colour), Red-Brown (mixed), or Brown (fully toned). |
| First Strike / Early Release | Coins submitted to the grading service within 30 days of the mint's release. A marketing designation, not a quality indicator. |
Striking standards
Mints produce coins to different quality standards. Understanding the difference is important because two coins of the same design can look very different and carry very different prices depending on how they were struck.
Bullion
The standard production method for circulating coins and bullion. Blanks are struck once at high speed. The focus is efficiency rather than finish quality. Bullion coins like the American Silver Eagle or Vienna Philharmonic are struck to bullion standard — they're investment products valued primarily for their metal content.
Brilliant Uncirculated (BU)
A step above bullion quality. BU coins are struck with greater care, often on specially selected blanks, producing sharper detail and better lustre than standard issue. They're not proof quality, but they're noticeably better than what you'd find in pocket change. Many mints sell BU versions of their annual coin sets.
Proof
The highest standard. Proof coins are struck multiple times on hand-polished planchets using specially prepared polished dies. The result is mirror-like fields with frosted, sculpted design elements. Proofs are produced specifically for collectors in limited quantities. They're typically more expensive than BU versions of the same coin.
Piedfort
A special collector issue struck on a planchet that's twice the normal thickness (and therefore twice the weight). Piedforts are typically produced in proof quality and in smaller quantities than standard proofs, making them more exclusive and more expensive.
Banknote grading (PMG)
Paper money is graded by PMG (Paper Money Guaranty) using a similar numeric scale to coins, but with criteria specific to paper: fold count, paper quality, margin centring, and ink quality matter more than strike quality.
| Grade | Name | Description |
|---|---|---|
| 70 | Superb Gem Unc | Perfect. No folds, no handling marks, perfect centring and margins. |
| 67–69 | Superb Gem Unc | Nearly perfect with very minor handling evidence. |
| 65–66 | Gem Uncirculated | No folds. May have very minor counting marks or slight corner handling. |
| 63–64 | Choice Uncirculated | No folds. Minor handling marks may be present. |
| 58 | Choice About Unc | No folds visible to the naked eye, but may show evidence of handling or a very light fold visible when held at an angle. |
| 55 | About Uncirculated | One light fold. Still retains significant crispness. |
| 45–50 | Extremely Fine | Two to three light folds. Paper is still crisp and bright. |
| 35–40 | Very Fine | Several folds but still a clean note with good colour. No tears or stains. |
| 25–30 | Very Fine (lower) | More folds, may be slightly limp. Paper still intact and reasonably clean. |
| 15–20 | Fine / Choice Fine | Moderate circulation. Multiple folds. Paper may be slightly soft. |
| 8–12 | Very Good / Good | Well circulated. Many folds, some soiling. Paper intact but soft. |
| 1–4 | Poor / Fair | Heavily circulated. Tears, stains, pieces missing, heavy soiling. |
PMG qualifiers
PMG adds qualifiers to the grade to note specific conditions:
- EPQ (Exceptional Paper Quality) — the paper has not been chemically treated or altered. This is the banknote equivalent of "original surfaces" in coin grading and is highly desirable.
- NET grade — the note grades at one level for wear but is assigned a lower grade due to a problem like a repair, stain, tear, or writing. A note with "VF 30 NET" has VF-level wear but a defect that lowers its effective grade.
- Star (★) — exceptional eye appeal for the grade, similar to NGC's star designation for coins.
When professional grading is worth it
Submitting a coin or note to a grading service costs money (typically $20–$50+ per item) and takes time (weeks to months). It's not worth grading everything in your collection. Here are some guidelines:
Worth grading
- Coins or notes worth significantly more than the grading fee — as a rough guide, items worth $100+ for standard coins, or $200+ for modern bullion where the grade premium is narrow.
- Key dates, rare varieties, and error coins where authentication alone justifies the cost.
- Coins you plan to sell, where a graded slab provides buyer confidence and often a higher sale price.
- High-value bullion coins (gold Eagles, Pandas, Britannias) in MS-69 or MS-70 condition, where the grade premium can be significant.
Not worth grading
- Common circulating coins in average condition. A circulated 2 Euro coin is worth 2 Euros regardless of its exact grade.
- Modern bullion coins below MS-69 — the premiums for graded bullion below MS-69 are minimal compared to the grading cost.
- Coins with obvious problems (cleaning, damage, heavy wear) that will receive a "details" or "net" grade rather than a straight numeric grade.
- Items whose value comes from personal significance rather than market value.
Need to look up a term?
The glossary covers all the vocabulary used in this guide.
Numismatic Glossary