Grading Coins or Paper Money

A guide to coin grading

Coin grading can be confusing, but it doesn't have to be. While it is still very difficult to gain the ability to grade a coin, understanding the grades can assist in valuing and buying coins.

Coins are graded on a 70-point grading scale with 1 being the worst condition and 70 being perfect mint state. The naming conventions can also lead to confusion, such as the grade of "Good" being a 4 out of 70 while "Fine" is 12.

The coin grading process is not just about the physical condition; it also takes into account factors like luster, coloration, and strike quality. For instance, two coins might both show significant wear, but one might have a sharper strike and more original luster, leading it to receive a higher grade. Authenticity is another crucial element, ensuring the coin hasn't been altered or tampered with in any way.

Additionally, third-party grading services have become popular and trusted entities in the coin collecting community. These professional grading services, like NGC and PCGS, usually provide an unbiased evaluation, encapsulate the coin in protective holders, and assign a grade. Utilizing these services can enhance a coin's marketability and provide assurance to both buyers and sellers.

1: Poor: This coin is barely identifiable.

2: Fair: Type and date are barely noticeable. Still extremely worn or damaged. Major details usually identifiable.

3: About Good: Type and date are noticeable, although some spots may be worn out.

4: Good (G): Primary devices and features are evident as outlines. Coin is still heavily worn.

6: Good - Plus (G+): Full rim, major devices easily identified. Features are clearly outlined.

8: Very Good (VG): Full rim with clearly discernible devices and features. Most legends are readable clearly, but still significantly worn.

12: Fine (F): Clear devices showing some detail, but whole coin is moderately but evenly worn.

20: Very Fine (VF): Clearly readable but lightly worn legends, devices show good detail, rims are clean. The whole coin shows moderate wear on the high points and a little wear below.

30: Good Very Fine (VF): Legends are clear and devices show all detail with little wear. High points of coin's design are lightly worn.

40: Extremely Fine (XF): Legends are sharp, and devices are clear with slight but obvious wear on high points.

45: Choice Extremely Fine (XF): Legends and devices are clear and sharp, with slight wear on the high points, and great eye appeal.

50: About Uncirculated (AU): Sharp legends and devices show only a trace of wear on the highest points. There must be some remaining mint luster.

55: Good About Uncirculated (AU): Sharp legends and devices show only a hint of wear on the high points. Remaining mint luster must be at least half in the coin should have excellent eye appeal.

58: Choice About Uncirculated (AU): Virtually uncirculated, except for minor wear marks on high points. Nearly all mint luster must be present and must have outstanding eye appeal.

60 - 70: Mint State Basal (MS): Coins show no signs of wear from circulation, but they are ugly (in fact uglier than an AU58). They are dinged-up, bag-marked, ill-toned specimens, but they are in mint condition and free of any wear! The grades from MS-60 to MS-70 as well as proof designations, are all based primarily on eye appeal, quality of luster and or the toning of the coin. It depends on the contact marks and even hairlines.

Proof: Proof is a type of coin and not a grade. A non-proof coin can never be "pretty enough" to be proof. It is a different coin blank.

A guide to banknote grading

Banknote grading globally uses a 70-point numerical scale universally accepted by collectors

Given the nature of the various printing processes and papers used over the centuries, some issues are given more leniency in some grading aspects than more modern types that are relatively uniform in quality.

Here is a brief description to show how a note is evaluated and assigned a grade by PCGS Banknote. Please note that all banknotes graded 65 and higher must also meet the criteria for Premium Paper Quality (PPQ).

1: Poor: Poor banknotes must be identifiable by catalog number. It is unusual for a banknote to circulate to the point of becoming Poor from a wear standpoint. These banknotes will be extremely worn with the paper virtually falling apart. Most banknotes acquire repairs before this point. An unrepaired Poor is an extreme rarity.

2: Fair: A Fair banknote will have the majority of the paper present, but larger pieces missing will be commonplace. Wear to the design will be extreme and eye appeal will be very negative.

3-6: Good: Banknotes at this level will show a lot of wear to the design throughout and small missing pieces will be the norm. Larger pieces missing will likely result in a grade of 3. The typical banknote graded 6 will be soft, with all body lost to circulation. The design elements will have considerable wear throughout; small splits, tears, and holes will be commonplace. A 6 may also be an otherwise-Very Good banknote that is missing small pieces, causing the eye appeal to be that of a Good.

8-10: Very Good: An 8 will be a banknote that is just a little more pleasing than the typical Good. Body will be virtually absent; but the design must not be as worn as a banknote graded Good. Banknotes graded 10 Very Good will have quite a bit of wear overall and minimal body remaining. At this level, minor issues that might warrant a comment on a higher-graded circulated banknote will be commonplace without mention. While the banknote will have weak body, it must still be relatively bright in design. Heavier soiling will also be commonplace on banknotes at this level. Typically notes that arrive at a bank in this condition or lower are destroyed.

12-15: Fine: A 12 will often be an otherwise Choice Fine banknote that has too much edge fraying or is overall just too worn. There must be moderate body remaining to achieve a Fine 12. The typical banknote graded 15 will have moderate snap left to the paper, but the wear will be too much for Very Fine; often this is the result of a banknote with typical VF level of folds but the centerfold may be extreme, where most rigidity is lost within the fold itself. A fold of such harshness will also usually be distracting to the eye in the key focal points (such as a central vignette or portrait). An overly worn Very Fine note could also arrive at 15.

20-35: Very Fine: An in-between grade, 20 indicates a note that is nicer than a Choice Fine 15 but not quite offering enough to make a mid-grade Very Fine 25. The typical 20 will retain decent body and have VF folds but may also be moderately crumpled throughout the entire note. A 20 cannot have too much wear in the focal points (or around the edges), otherwise it might be a 15. The folds and wear on a 30 will be more noticeable than as seen on a 35 though not hard and “breaking the paper” as typically seen on a 25. A 30 could also be the final grade on a banknote otherwise graded 35 with something overly distracting to the eye appeal warranting a drop in the grade. The typical Very Fine will have a horizontal fold and three or more vertical folds, however multiple vertical folds will arrive at VF as well. It is the severity of the folds that matters here, as the eye appeal will usually be excellent. For a 35, the folds will be moderate and not too distracting to the eye.

40-45: Extremely Fine: Most 40s will be notes with “VF folds,” but these folds will be rather light in nature. Wear will be minimal and eye appeal will be excellent; an otherwise-45 could also get to 40 by way of harder folds or something else affecting eye appeal negatively. A typical 45 will have three moderate vertical folds, often referred to as “storage folds,” as banknotes at this level circulated very briefly. A moderate horizontal fold plus a moderate vertical fold could also arrive at this level. The presence of two very hard vertical folds is another way to achieve a 45. Keep in mind that wear beyond that typical for Choice XF could affect eye appeal and lower the grade.

50-58: About Uncirculated: The most common way to arrive at a 50 is a Choice XF banknote where the folds present are light, and the wear is minimal, making the eye appeal that of an About Uncirculated banknote. A less-common way is an otherwise higher About Uncirculated banknote with negative eye appeal overall. The grade of 53 is often the result of two hard vertical folds; there are several ways a banknote could reach 53 based on the severity of the present folds, handling, wear, and eye appeal. A typical 55 will either be a banknote with a horizontal fold (which is longer than a vertical fold because it spans across the length of the note) or a harder vertical fold. Two lighter folds or one normal fold with additional excessive handling can arrive at a 55 as well. A banknote otherwise graded 58 that has poor centering to the point of the design being off of the paper (except in cases of hand-cut banknotes) could be graded 55. Grades in the circulated range take into account the severity of folds/bends, ink loss, overall eye appeal, etc. The typical 58 will have a vertical fold or a single corner fold into the design of the banknote. Another way for an otherwise-uncirculated note to achieve 58 is by having handling all over that is just too excessive and gives the appearance of About UNC overall; this can also be the result of corners that are normally sharp being round, or edges being roughed up while the banknote itself does not have a single fold into the design.

60-64: Uncirculated: The grade of 60 is not often encountered; while strictly uncirculated from a fold(s) standpoint, a banknote will have a considerable amount of minor issues shy of needing to be mentioned on the label, and the eye appeal will be quite negative. A 61 grade is not often encountered. However, when this grade is earned it will usually be found on a strictly uncirculated banknote with more serious issues that don’t quite warrant a comment on the label. The centering may be interrupting the design considerably or there will be minor issues present, such as more serious foxing/light staining, small margin tears, multiple corner tip folds not into the design, etc. Typically, banknotes at this level will have negative eye appeal because of the minor issues present. The typical 62 will be a strictly uncirculated banknote that has poor centering where there is no margin on one side and the design is interrupted. A corner tip fold or two not extending into the design, or slightly more serious minor issues such as foxing, a couple tiny margin tears, etc. could also garner this grade. Heavy handling could also arrive at a 62. A 64 will have out-of-alignment margins and they may not be full for the issue. More handling is allowed here – for example, a corner could be lightly bent, or there could be a heavier crinkle that is distracting to the eye. For non-PPQ notes this is the highest grade they can attain.

65-66: Gem Uncirculated: A grade of 65 requires a banknote to have full margins for the issue and reasonable centering. It will be visibly off but not to such a distracting level that the edge of one margin comes too close to the frame of the design. More light handling is allowed here, but anything too excessive will result in 64 or lower; sometimes a Superb Gem will have a level of handling that drops it to a 65 grade. Where applicable, a Gem will require reasonable amounts of embossing to be present on an intaglio printed banknote; seemingly light embossing (for the issue) could result in a lower grade. A Gem 66 will have pleasing centering that is slightly more out of alignment than a 67, but the margins must still be full for the issue. More light handling is allowed here, but nothing immediately distracting unless the note would otherwise grade a 68 or higher based on margins and centering.

67-70: Superb Gem Uncirculated: For a banknote to grade 67 it must have pleasing centering that is not too far out of alignment and boast full margins. A 67 may have some light handling, but anything too distracting for this level will garner a lower grade. A 68 will be assigned to a banknote that has full margins for the issue and is slightly off center; slight shift of the registration is also allowed. However a major shift in registration could preclude a 68. Slight handling will be allowed at this grade level, although any handling considered more than slight could result in a lower grade. he grade of 69 will be applied to banknotes that are visibly the slightest bit misaligned that they just miss perfection for a 70. The margins must be full for the issue; the registration may be the slightest bit off as well. A 69 could also be assigned to an otherwise perfectly centered banknote with the slightest handling or other minor printing imperfection. For a banknote to grade 70, it must be perfectly centered to the unaided eye with full margins for the issue; the registration must also be aligned perfectly. There cannot be any handling marks or imperfections in the print quality of the entirety of the banknote. It should be noted that the crimp present at the end on banknotes where a security strip is inserted in the creation process is considered as-made up to a point and typically does not preclude a 70 grade.

Using the 70-point banknote grading standards, a grading house will certify banknotes and encapsulate them in hard plastic holder.