CIRCULATED COIN CONDITIONS

Unless a coin has come straight out of a fresh roll and into your hand, the vast majority of coins you will encounter in everyday commerce will be circulated coins that will show varying degrees of wear. These coins are evaluated by “grades” ranging from “Almost Good” to “About Uncirculated.” These verbal designations are used as a form of shorthand to describe the amount of wear on a coin. The less wear a coin shows, the more it is worth for that date and type. It is very important to learn how to grade since the value of a coin can vary greatly depending on this factor. A coin at the lower end of the grading spectrum valued at $5 could be worth $500 at the upper end.

There are several moderately priced books that fully illustrate and describe the characteristics of each grade. These books may be obtained through coin shops or bookstores. You may also be able to obtain them through your local library.

The following are general standards for circulated coins that you may encounter: (Consult a grading guide for the specifics relating to each coin type.)

About Good (AG): Very heavily worn with portions of the lettering, devices or date missing or barely visible. The date must always be legible or it will grade “Poor” to “Fair” (two grades that we will not cover here as you should never encounter them in circulation). AG (and lower) grades are generally associated with obsolete coinage types from bygone eras when coins were less inclined to be removed from circulation by collectors or be melted by the government due to damage or wear. These obsolete types were the backbone of commerce, much like our $1 through $20 bills are today, and spent virtually no time locked up in piggy banks or shoved into desk drawers (save for during times of financial crisis or hoarding). Thus, they circulated more extensively for far longer periods of time than their modern counterparts. Today, an AG (or lower grade) coin in circulation is a rarity.

Good (G): Heavily worn, all major details of the coin are visible, but may be faint in some areas. All lettering must be separate from the rims. Raised areas on the coin must be slightly raised although the detail may be absent. The coin rims should be raised.

Very Good (VG): Well worn, all major details of the coin are visible, but may be faint in some areas. Raised areas on the coin must be fully raised and the details must be visible. The coin rims should be fully raised.

Fine (F): Moderate wear, the central design is bold, all lettering is well defined with slight weakness permitted.

Very Fine (F): Light wear on the surface, all details and lettering are bold, and only the high points of the coin’s features show light wear.

Extra Fine (EF or XF): Light overall wear on the coin’s high points, all details are very sharp, and may contain traces of mint luster in the protected areas of the coin.

About Uncirculated (AU): Very slight traces of wear may be seen on the highest point on the coin’s obverse and reverse. These coins will often have mint luster and may look uncirculated with the exception of wear on the high points of the coin. They may range from red to brown in coloration for copper and white to almost black for silver.