Key Takeaways:
- Grading builds trust between buyers and sellers because both parties can rely on a universal scale instead of personal opinion.
- The Sheldon scale ranks coins from 1 (poor) to 70 (perfect). The higher the number, the better the coin’s overall condition.
- Mint State pennies have never seen circulation. Any marks would be from a storage container or handling during production.
Pennies may seem insignificant, but even a small change in their condition can make a major difference in value. Collectors follow a strict grading scale that ranks coins based on how well-preserved they are.
Grading also has its own language, so buyers and sellers know exactly what terms like “Good,” “Fine,” or “MS65” mean. This guide breaks down the grading scale, what graders look for while evaluating coin pieces, and how American Hartford Gold can help you on your collecting journey.
Why Does Grading Matter?
Every collector has heard a story or two about a rare penny that sold for a hefty sum. In almost every case, its assigned grade played a significant role. A 1909S VDB cent in poor condition might earn a few hundred dollars or so, while the same date graded MS65 could earn six figures.
Grading builds buyer confidence by offering a universal method for evaluating coins, ensuring everyone involved is on the same page. With clear standards in place, setting fair prices and avoiding disputes is much easier.
Grading Protects Your Budget and Builds Trust
When you understand how to interpret a grade, you can begin to compare coins and determine their worth. A Lincoln wheat reverse graded Very Fine displays full wheat lines, while a Fine example would display only half.
That extra definition makes the Very Fine coin worth much more, and knowing how to spot this difference saves you from paying more than a coin is worth. Grading also builds trust between buyers and sellers because both parties can rely on a universal scale instead of personal opinion.
Grading Creates a Record for Future Sales
A coin’s grade history acts like a passport as it moves from one owner to another. If you purchase a penny in XF40 today, you can expect the next collector to recognize and honor that. This record is helpful for families who inherit coin collections. Documented grades help new owners determine how the inheritance should be stored, insured, and cared for.
What Is the Sheldon Scale?
The Sheldon scale ranks coins from 1 (poor) to 70 (perfect). The higher the number, the better the coin’s overall condition. The scale first surfaced in the 1940s and was used to grade early large cents before later expanding to include all U.S. coins.
Numerical Breakdown
Grades 1 through 59 are assigned to coins that were circulated and worn. On the low end, it is difficult to make out any of the design details at all. On the high end, there are light traces of wear, but the coin design is still legible.
Grades 60 through 70 are considered Mint State, meaning no signs of wear exist on the entire surface. These coins would appear as if they had never been in circulation or even touched by bare hands. Coins in Mint State are highly sought after and can command decent sums on the market.
Letter Prefixes
Each numerical grade pairs with letters like P for Poor, G for Good, or MS for Mint State. These prefixes act as a quick introduction that offers collectors insight into the coin’s condition before they dig deeper.
For example, VG10 tells you the coin is in Very Good shape and scores a 10 on the numeric scale. This shorthand helps speed up documentation, saving time for collectors and dealers.
Plus and Star Grades
Some grading firms add plus signs or stars to indicate a coin sits at the high end of their numeric slot. A VF25+ penny, for example, looks nicer than a standard VF25 and may command a small premium.
Stars can be used to highlight exceptional visual appeal, like rainbow toning or vibrant luster. Although these grades are subjective, the symbols help guide buyers to coins that stand out from the rest.
Coin Grading Scale: P1-AU58
Most pennies you find lying around fall somewhere in the circulated realm. Understanding these grades helps you decide which coins are worth sending in for professional certification and which aren’t worth the extra fuss.
Poor (P1) to Good (G4)
A penny graded Poor may display a mere outline of Lincoln’s profile and considerable wear. Inscriptions will likely blend into the rim, and the date might appear halfway rubbed off due to heavy wear.
G4 coins will have legible dates and full rims, but details in the hair and wheat stalks may appear flat. While low-grade pieces can still earn some money, common dates rarely gain more than face value.
Very Good (VG8) to Fine (F12)
On a coin graded VG8, the Liberty letters should show but may merge lightly into the design. The outline of the wheat is clear, but inner lines are not visible.
F12 will reveal more design details. Collectors tend to start paying closer attention starting at Fine grades because design elements begin to pop at this stage, making the coin more attractive and adding to its value.
Very Fine (VF20) to About Uncirculated (AU58)
At VF20, wheat lines appear strong, and Lincoln’s coat is detailed enough to reveal the folds in its fabric. Only minor elements lack detail at this grade.
AU58 coins display complete design elements with little evidence of any wear. Under magnification, luster shines, and the coin appears untouched. These pieces mimic Mint State without the higher price tag.
Mint State Grades: MS60 to MS70
Mint State pennies have never seen circulation. Any marks would be from a storage container or handling during production. Mint State coins are full of luster and can be worth a lot, particularly varieties that were minted in smaller amounts.
Lower Mint State: MS60 to MS62
An MS60 coin has no wear but will have several contact marks and little to no luster, causing it to appear quite dull. However, it is still classified as an uncirculated piece and carries value that exceeds AU coins.
MS62 is slightly better — these coins have fewer nicks and brighter surfaces. Collectors will often accept these grades for the dates that are more difficult to acquire, then sell them when the same dates come around in better condition.
Mid-Range Mint State: MS63 to MS65
MS63, also known as “Choice Uncirculated,” brings vibrance with minimal marks. The visual appeal is strong at this grade, and collectors bid even stronger.
MS65 coins show only a few tiny nicks and possess a strong, even color. For many series, MS65 represents the sweet spot between beauty and price.
Top Mint State: MS66 to MS70
MS66 and MS67 are nearly perfect and any marks are practically invisible. There aren’t many coins in this condition, which pushes prices higher.
MS70 is a perfect coin under 5x magnification, which is almost unheard of for early pennies. Modern issues reach 70 more often than past examples.
How Does the Grading Process Work?
Coins arrive in tamper-proof flips with their associated forms. Staff then compare each coin with its paperwork and log the serial numbers into a tracking system. Any coin that appears to be counterfeit or altered gets flagged and set aside for further evaluation.
The Examination
Multiple graders inspect each coin under proper lighting and at certain angles. They each record their own opinions about the piece before the grading finalizer makes the final determination.
Tools used include 5x magnifiers and rotating trays.
Slabbing and Documentation
After grading is complete, the coin goes into a sonically sealed plastic holder with a printed label. The label lists date, mint mark, assigned grade, and a barcode for online lookup.
Photos are often included as well. High-resolution images prevent tampering and help confirm authenticity if an individual chooses to sell.
Master Coin Grading With AHG
A clear understanding of how coins are graded helps collectors make smarter purchasing decisions. By learning each level of the Sheldon scale and what professionals are on the lookout for, you can assess a coin’s condition with confidence.
Whether you dream of building a top-ranked registry set or simply want to learn to properly assess precious metals for your Gold IRA, American Hartford Gold is here to help expand your grading knowledge and grow your collection.
FAQs
Is an MS70 grade possible for older pennies?
It’s extremely rare. Most early pennies will have marks from storage and handling where they were minted. Newer coins can reach 70 more often due to advancements in technology.
Do I need to slab every coin?
No. Slabbing makes the most sense for valuable or highly sought-after pieces. Lower-value coins can remain in storage flips or coin albums with handwritten grades for easy tracking.
Can two graders give different scores?
Yes. Grading has a subjective element to it. Professional services consult multiple graders on their opinion before reaching a consensus.
Does toning hurt a coin’s grade?
Natural toning does not lower technical grades. However, artificial or uneven colors may affect a coin’s value on the market.
Sources:
Inheritance: Definition, How It Works, and Taxes | Investopedia
Currency in Circulation: Definition, How It Works, and Example | Investopedia
The FBI Warns the Public of Counterfeit Coin Scams | Department of Justice
