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Coin collecting and numismatics is perhaps a lucrative but very challenging hobby requiring a detailed understanding and knowing a lot of details. Can your favorite coin turn out to be a treasure or on the contrary a cheap one that cannot cost more than its face value?
But how to understand the value of this or that coin in your collection? How to become a real expert and understand the smallest nuances, such as "what is ms65 coin grade" or "how to understand the coin grading system"? Here we would like to make all things clear and offer you some tips and advice to learn how to grade coins like a professional and take proper care of your collection.
Start with the Basics: Coin Evaluating System
Coin grading scale (also known as grade), is a coin grading system used by numismatists and collectors to determine the quality of coins. It standardizes the grading process so that the condition and degree of coins preservation can be assessed in the same way. Grades of coins can be different, but namely they directly affect the value of the coin. And if you are just starting out in numismatics and would like to finally understand the nuances of “what does ms63 mean in coins?”; “what does ms68 mean in coins?”; or “what is coin ms grading?”, then let's get into the details in our coin ratings guide below.
Main Aspects of Coin Grading Scale
One of the most popular grading scales is the American Sheldon Scale, developed by numismatist William Sheldon in 1949. This scale grades coins on a 70-point system, where 1 is extremely poor condition and 70 is a perfect, flawless coin with no defects. This system also includes several levels.
Grades According to the Sheldon Scale:
Poor (P-1) — Almost undetectable features.
Coins in this condition are extremely worn. Visual features and details are almost completely erased and basic information is difficult to perceive. It may be damaged, corroded or heavily soiled.
Good (G-4) — The shape of the images is visible, but heavily wiped out.
In this condition, the main features of the coin become visible, but most of the detail has disappeared. The main design elements are still recognizable, but the surface is heavily scratched and worn.
Fine (F-12) — Some details lose their clarity, but the main features are clearly distinguishable.
Coins in this grade have some scuffing and loss of detail, but the basic design elements remain crisp. There may be some minor wear near the high points of the coin, but the overall appearance of the coin is still quite good.
Very Fine (VF-20) — Light wear marks on convex points.
This grade includes coins with light signs of wear mostly on the highest points. Details remain crisp and well-detailed, with minimal signs of handling. Such coins show signs of use, but little use.
Extremely Fine (EF-40) — Light signs of use, all parts are evident.
These coins show only light signs of use. All details remain crisp and clearly visible, and although the coin looks virtually new, a few minor scuffs may be visible.
Mint State (MS-60 to MS-70) — MS coin grading scale is applied to a coin with no trace of handling, where MS-67 coin grade is somewhere in the middle.
Coins in this condition look brand new, as if they have just come out of the mint. They have no visible signs of handling and retain their original details and shine. This grade may also include additional subcategories, such as MS-65, MS-70, indicating that the level of preservation, i.e., a grade of the coin is even higher.
Proof (PR) – Special grade for collectors.
A separate category for coins specially made for collectors by using a special process that gives them a mirror-like finish and sharp details. Graded on the same scale from 1 to 70, but with a PR prefix (e.g. PR-69).
Let's say you have a Soviet 1-ruble coin from 1924. If, when you examine the coin with a magnifying glass, you notice that it shows all the major details (images and inscriptions), but has light signs of wear at the highest points, the coin may be in VF-20 grade. If, on the other hand, the details remain nearly perfect and only minimal signs of use are visible, its condition can be graded as EF-40.
Tip: Seek Professional Help
If you have doubts about a coin's grade or if it has a high value, consider contacting a certified appraiser or using a certified grading service such as NGC (Numismatic Guaranty Corporation) or PCGS (Professional Coin Grading Service). Professionals can provide an accurate grading definition and help you better understand the value of your coin.
Were Looking for Copper but Found Gold? Evaluate the Metal of The Coin
Knowing the materials from which coins are made is one of the key aspects of evaluating them. The metal of a coin does not only determine its original value, but also affects its durability and environmental resistance.
Most often, coins are made of the following metals:
Copper. An example is the kopecks of Peter I of the 18th century. They are subject to corrosion, but can form a beautiful patina, which sometimes even increases their value.
Silver. A prime example is the ancient denarii of the Roman Empire. Silver can oxidize over time, turning a darker shade, but this process can be controlled by proper storage.
Gold. A good example is the Russian chervonets from the early 20th century. Gold does not oxidize and retains its luster for centuries, which makes such coins especially valuable.
Additional Life Hack: Check the Authenticity of the Metal with Magnetic and Chemical Tests
When it comes to coin collecting, one of the biggest threats is fakes. No matter how experienced a collector is, there is always a risk of encountering a counterfeit. Fakes can be of very high quality, so it is not always possible to tell the difference. In such cases, magnetic and chemical tests come to the rescue to determine the authenticity of the metal with greater confidence.
Magnetic Tests
Real silver, gold, platinum and many other precious metals are not magnetic. Thus, if your coin is attracted to a magnet, there is a good chance that it is made of a cheaper alloy containing iron or nickel (that is attracted by the magnet). Thus, if the coin is attracted to the magnet, it is most likely a fake. For the purity of the experiment, it is better to use a strong magnet (neodymium).
Chemical Tests
If the magnetic test does not give a definite result, you can move on to chemical tests. They require careful preparations and compliance with safety precautions, but they are able to determine the composition of the metal more accurately. Chemical tests are conducted using reagents that can be purchased in specialized stores for numismatists: nitric acid - for silver (if the silver is genuine, the color of the reagent will be green or gray, if the alloy - brown or black), a set of acids - “for gold carat test” (if the surface of the coin began a reaction after applying the reagent, then in front of you is not pure gold but the alloy). This is a great way to find out the authenticity, but be careful, the changes on the surface of the coin (if it is made of the alloy) are irreversible.
Assess the Rarity, Historical Context and Provenance of the Coin
Rarity
The rarity of a coin is one of the key factors in its value. Some coins, even if they are not in perfect condition, can be worth fabulous money because they are rare by nature. How to determine rarity?
Pay attention to the mintage. The fewer copies issued, the rarer and more valuable the coin may be. A good example is the 1943 U.S. copper cent - there are only 40 pieces in the world.
Try to find out the date and place of minting. Sometimes coins of the same denomination and design, but with different minting dates or locations can vary greatly in price. For example, coins minted in rare coin yards can cost many times more. This is confirmed by the 1-ruble 1725 (St. Petersburg Mint), as other rubles of the same period are valued and worth a lot less.
Pay special attention to coins with minting errors (if you can find any). Coins with manufacturing defects, whether they are incorrectly engraved or stamped, can be real treasures in a collection. Some collectors are willing to pay big bucks for such specimens. For example, a 25-cent “1970-S Washington Quarter” with a double date stamp of “1941” on the reverse was sold for several thousand dollars.
Story
The history of a coin can tell more than meets the eye. A careful study of the historical context of its appearance and circulation can significantly increase its value in the eyes of collectors.
Important historical points include: period of minting (coins issued during important historical events are valued higher); origin (coins from rare or exotic countries); and association with famous personalities (coins depicting prominent historical figures, rulers, generals, or famous personalities).
Use online databases and historical archives, and follow auctions to find out the market value and role of your coin in history. Or don't waste your time and turn to proven technology. With Coin ID Scanner App you can find all the useful information about the coins in your collection in two clicks. Just take a photo and upload it to the app to get all available information, the latest news in the world of numismatics and even organize information about your coins.
Knowledge Is Power
Now that you know the basic methods and some life hacks for grading coins, your collection will be a true reflection of your skill. And you, in turn, enjoy every moment of your fascinating hobby and let your knowledge bring you new joys and discoveries!
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