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