APPRAISEMENT AND CLASSIFICATION OF COINS ACCORDING TO GRADE AND CONDITION

Grading is the process of assigning the proper label to a given coin. The ability to appraise a coin accurately comes only with years of experience. The market value of a coin is considerably affected by the "wear and tear" on its surface. Proof coins must have mirror-like surfaces without blemishes. There must be no visible signs of wear or handling on uncirculated coins even when using 30 times magnification. Bag marks may be present. By checking the difference of the light reflected in the high points to the other parts of the coin, an “almost uncirculated” coin is separated from the mint state coins. There will be about 95% of the original detail visible on extremely fine coins with slight wear only visible on the highest points of the coin. Very fine coins will have about 75% of the original detail visible and moderate wear on the detail over the entire coin. There will be about 50% of the original detail visible on fine coins with moderately to heavy wear, but the design still intact. About 25% of the original detail will be visible on very good coins with heavy wear over all the detail and design. In good condition some of the larger detail may still be visible with the design clearly outlined but with very heavy wear. Basal state coins have suffered actual damage, such as piercing or clipping with no detail visible on the entire coin.

The American Numismatic Association has devised a scientific and objective system to give a more precise classification to coins as shown below:

Encapsulating or slabbed coins in sealed folders:
Proof-70 Perfect proof
Proof-67 Gem proof
Proof-65 Choice proof
Proof-63 Select proof
Proof-60 Proof

Uncirculated coins are graded by mint state:

MS-70 Perfect
MS-67 Gem
MS-65 Choice
MS-63 Select
MS-60 Uncirculated

Lower grades:

AU-50 About uncirculated
EF-45 Choice extremely fine
EF-40 Extremely fine
VF-30 Choice very fine
VF-20 Very Fine
F-  12 Fine
VG- 8 Very good
G-  4 Good
AG- About Good
BS-1 Basal state

SOUTH AFRICAN KRUGER RANDS

South African Krugerrands are legal tender coins with no fixed value. It was first minted in 1967 and it was the first coin to contain one full ounce of fine gold. During 1967-1969 superior quality specimens exhibiting proof-like surfaces were struck. In addition the following varieties are known:

1967 - Proof Krugerrands with no frosting on the design - head and springbuck
1968 - Proof Krugerrands with frosting only on the Springbuck.
1968 - Frosted Krugerrands - frosting on both the head and the springbuck.
1969 - Proof Krugerrands - from this date frosting on both the head and the springbuck.

Only 1044 of the matt bust type were minted in 1968 and only sixty each of the half, quarter and tenth of and ounce proof Krugerrands were struck in 1980.
The South African Krugerrand is minted in many content levels of bullion including one ounce, one half ounce, one quarter ounce and one tenth ounce.
From 1986 sets of Proof Krugerrands  consisting of  one ounce, half ounce, quarter ounce and one tenth ounce have been made available in stinkwood cases.
Since 1987 a full range of Krugerrands bearing the G.R.C. ( Gold Reef City ) mint mark has been struck in limited quantities.
On the obverse of the Krugerrand is the bust of President Paul Kruger. Otto Schultz designed it in 1892 for the Zuid-Afrikaanche Republiek. On the reverse is Coert Steynberg's springbuck design which is also a national symbol of South Africa.
 Today, it is the most widely known bullion coin and the most widely owned enjoying 90% of the market in 1980. People are willing to pay a premium for the privilege of owning gold they may legally hoard.  According to refinery records, 46 million ounces of these gold bullion coins have been sold through 2008. The South African Krugerrand continues to enjoy a popularity that is above and beyond other bullion coins produced in other countries. It is the most widely recognized, the most widely purchased and the most widely sought after.