The Alphabet Soup of Coin Grading
By Robert J. Fazio
Senior Vice President
It's rare (no pun intended) for an investment grade coin to be identified without a
description of the coin's condition. That description, however, can be confusing to someone who
isn't familiar with coin grading especially since, like most industries, the coin world often
relies upon initials or slang to describe their products.
To help you better understand some of the more common grades and descriptions, I've set forth
a brief primer below. As you read these descriptions, keep in mind that grading is more art than
science. While the prominent coin grading services like Professional Coin Grading Service (PCGS)
and Numismatic
Coin Guaranty (NGC) work hard to standardize their grading, experts may disagree about a coin's
condition even when applying the same objective standards.
Circulated Coins
When a coin is graded as "circulated," it means the coin shows wear and tear. Look
at the coins in your pocket or purse and you'll see evidence of this wear from nicks and
scratches to worn surfaces as coins rub together or are handled over time. While collectors often
prefer coins that are "uncirculated" or in "Mint State" condition, there is
an allure to a circulated coin which, at one time, was used as common currency hundreds or
thousands of years ago. For example,Goldline has offered Ancient Constantine coins which were
struck between 307-337 during the reign of Constantine the Great (280-337 A.D.), the first
Christian Roman Emperor. Amazingly, these coins are in About Uncirculated (AU) condition and
appear as they did when struck nearly 1,700 years ago.
Uncirculated Coins
A coin that shows no wear is designated an uncirculated coin. This does not mean, however,
that the coin may not show signs of age. By their nature, metals react with the environment and,
over time, begin to display what is commonly referred to as "tarnish" and what the coin
world calls "toning".
Many people new to rare coins often prefer a coin free of toning while experienced collectors
value toning for its beauty and evidence of the coin's history and age. In fact, some
unscrupulous dealers have been known to artificially tone coins.
Uncirculated coins generically may be referred to as "Brilliant Uncirculated" or
"BU" coins. Goldline's Swiss 20 Francs gold coins, which were minted between 1883 and
1949, are all Brilliant Uncirculated coins, appearing as they did when minted up to 125 years
ago. If graded, BU coins will have a minimum grade of Mint State 60 (or MS-60).
This brings us to the Mint State ("MS") system of grading which grades coins on a
scale of 1-70. Coins in uncirculated condition will be graded between MS-60 and MS-70 with MS-70
representing the perfect coin.
An MS-60 through MS-62 coin, although uncirculated, will show "bag marks" (marks
which come from coins striking each other, something that often occurs in bags of coins) and
minor scratches. Some or all of the original luster will be present.
An MS-63 or MS-64 grade is sometimes referred to as "Choice Brilliant Uncirculated"
or "Choice BU". MS- 65 coins, or "Gem" or "Superb Gem" coins,
usually posseses bright luster and very few bag marks.
MS-66 though MS-69 coins in nearly any denomination are quite scarce and the values rise
significantly from lower graded coins. The MS-70 coin is flawless. Coins dated pre-1964 in MS-70
are extremely uncommon. Even more modern coins graded a perfect MS-70 are uncommon when compared
to the total population of those graded coins.
Goldline's Account Executives and in-house numismatists can answer any questions you have
regarding coin grades, coin collecting and acquiring graded coins.
