What Is Coin Grading — And Does It Actually Matter for Beginners?
Let me tell you about the first time I heard someone use the phrase "MS-65."
I was at a coin show, standing at a dealer's table, and the guy next to me picked up a Morgan Dollar and said "nice MS-65" like it was the most obvious thing in the world. The dealer nodded. They both smiled. I had absolutely no idea what either of them was talking about.
I smiled and nodded too. Then I went home and spent two hours on the internet trying to figure out what MS-65 actually meant.
If you're a beginner — or someone who just inherited a collection and keeps seeing numbers on those little plastic cases — this article is the one I wish I'd had back then.
I'm going to explain exactly what coin grading is, what those numbers mean, and most importantly: whether any of this actually matters for someone like you.
What Is Coin Grading?
Coin grading is the process of evaluating a coin's condition and assigning it a numerical score.
That's really all it is. A standardized way of describing how worn — or how pristine — a coin is.
The scale runs from 1 to 70. A coin graded 1 is barely identifiable — heavily worn, barely a hint of design remaining. A coin graded 70 is considered perfect. Absolutely flawless, even under magnification.
Most coins you'll encounter in the real world fall somewhere between those extremes. And once you understand the basics of the scale, you'll start seeing coins completely differently.
The Grading Scale — Simplified
Here's something I really want you to hear: you don't need to memorize the full 70-point scale. Not even close. What you need is a working understanding of the main categories, because those are what drive value.
Poor to About Good (P-1 to AG-3)
These coins are barely coins anymore. You can tell what they are — just barely. The date might be readable. The design is mostly flat. These have very little collector value unless they're extremely rare dates.
Good to Very Good (G-4 to VG-10)
Heavy wear, but the main design is visible. The rim might be worn down to the design. Most details are flat. These are the coins you find in old junk bins — still recognizable, but well-traveled.
Fine to Very Fine (F-12 to VF-35)
Now we're getting somewhere. Moderate to light wear, but the design shows clearly. You can see most of the details — hair strands, feathers on eagles, lettering is sharp. These are solid mid-grade coins and represent a lot of what serious collectors buy and sell.
Extremely Fine (EF-40 to EF-45)
Light wear on the high points only — the parts of the design that stick up the most and catch the most contact. Everything else is sharp and clear. These are genuinely attractive coins that most people would describe as looking "really good."
About Uncirculated (AU-50 to AU-58)
This is where it gets interesting. Coins in AU condition have only the slightest trace of wear — sometimes just a tiny rub on the very highest point. They look almost perfect to the naked eye, but they did circulate, if only briefly.
The jump from AU-58 to MS-60 can be enormous in terms of price — even though the coins look almost identical to a beginner. I'll explain why in a minute.
Mint State (MS-60 to MS-70)
This is what "MS" stands for — Mint State. A coin that never circulated. It went from the mint straight to a collector or dealer without spending a single day in someone's pocket.
Within Mint State, the numbers matter a lot:
MS-60 to MS-62 — uncirculated, but not pretty. Lots of contact marks from other coins banging around in mint bags. Collectors call these "bag marks."
MS-63 — better, but still some noticeable marks. The "select uncirculated" range.
MS-64 — nice looking coin. A few small marks but nothing that jumps out at you.
MS-65 — now you're talking. Gem quality. Sharp strike, good luster, only minor imperfections. This is what that guy at the coin show was excited about.
MS-66 and above — exceptional coins. These command serious premiums, especially for popular series.
MS-70 — theoretically perfect. Extremely rare in practice. A true MS-70 is a big deal.
What About Those Plastic Cases With Numbers on Them?
If you've inherited a collection — or bought coins without fully knowing what you were getting — you've probably seen coins sealed inside hard plastic cases with a label showing a number. Maybe PCGS or NGC on the label.
Those are called slabs. And here's why they matter.
PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Company) are the two most trusted independent grading services in the hobby. When one of them grades a coin, they seal it in a tamper-evident plastic holder with the grade printed on the label. That grade is considered reliable by dealers and collectors worldwide.
A coin in a PCGS or NGC slab isn't just graded — it's authenticated. The grading company is saying: this coin is genuine, it hasn't been altered, and in our professional opinion it grades at this level.
That matters enormously for value. A Morgan Dollar graded MS-65 by PCGS is worth significantly more than the same coin in the same condition with no slab — because the buyer knows exactly what they're getting. There's no guesswork.
If you have slabbed coins in an inherited collection, those are almost certainly the most valuable pieces. Don't crack them out of the holders. Don't try to clean them up. Just set them aside carefully and look up the values at PCGS.com or NGC.com — both have free online price guides.
Does Grading Actually Matter for Beginners?
Here's my honest answer: yes and no.
Where it matters most:
If you're selling coins, grading affects what you can reasonably ask for — and what a dealer will offer you. A coin they call "VF" is worth less than one they call "EF." Understanding the difference means you can push back on low offers and have a real conversation instead of just accepting whatever number someone throws at you.
I cover this in detail in my guide on how to sell coins without getting ripped off — but the short version is that knowing basic grades gives you a real negotiating advantage.
If you have slabbed coins, grading matters a lot. The number on that label is the difference between a $50 coin and a $500 coin in some cases.
Where it matters less:
If you're just starting out and buying coins for fun — especially lower-value coins under $50 — don't stress about this too much. Buy what looks good to you. Learn the scale over time. Your eye will develop naturally the more coins you handle.
The beginner mistake I see most often is people getting so caught up in grades that they forget to actually enjoy the hobby. Grading is a tool, not the point.
The One Grade That Trips Beginners Up Every Time
I want to spend a second on this because it confuses almost everyone at first.
The jump from AU-58 to MS-60.
To a beginner's eye, an AU-58 coin and an MS-60 coin look almost identical. The AU-58 might actually look better — it could have more luster, a cleaner surface, better eye appeal overall.
But the MS-60 is worth more. Often significantly more. Why?
Because the grading system isn't just about looks — it's about whether a coin circulated. A coin that never touched a cash register or a pocket is categorically different to collectors, regardless of how it compares visually to a worn coin.
This is one of the reasons that truly understanding coin grading takes time. The numbers feel logical until you hit moments like this where the logic seems backwards. But once it clicks, it stays with you.
How to Grade Coins Yourself (Roughly)
You don't need to become a professional grader. But having a rough sense of where your coins fall is genuinely useful. Here's how I approach it:
Start with the high points. Look at the parts of the design that stick up the most — the cheek of a portrait, the eagle's breast, the lettering on a rim. These wear first. How much wear do you see there?
Check the fields. The flat background areas of a coin are called fields. Are they smooth and reflective? Scratched? Full of contact marks? Fields tell you a lot about a coin's history.
Use good lighting. I cannot stress this enough. A coin that looks worn under bad lighting might show beautiful luster under a window or a directed lamp. Always check in good light before making a judgment call.
Compare to reference images. PCGS and NGC both have online photo grade sets — real coins at each grade level you can compare against. This is one of the fastest ways to calibrate your eye.
When in doubt, go lower. If you're not sure whether a coin is VF-30 or EF-40, call it VF-30. Undergrading your own coins is always better than overgrading them and embarrassing yourself in front of a dealer.
Should You Get Your Coins Professionally Graded?
This is a question I get a lot, so let me be direct.
Professional grading costs money — typically $30 to $50 per coin for standard submissions, more for higher-value pieces. It also takes time, often weeks or months depending on the service tier.
It's worth it when:
A coin appears to be in Mint State and looks like it might grade MS-64 or higher
You have a key date coin — a rare date that commands serious value
You're planning to sell and the coin's value is high enough that certification would increase what you can get
It's not worth it when:
The coin is worth less than $100 in any condition
It's a common date with heavy wear
You're not planning to sell anytime soon
If you inherited a collection and you're wondering what to do with it, my step-by-step guide on what to do when you inherit coins will help you figure out which coins deserve a closer look before you make any decisions.
The Bottom Line
Coin grading sounds intimidating when you first encounter it. All those numbers and abbreviations feel like a language you don't speak yet.
But here's the truth: the basics aren't complicated. Worn coins grade lower. Uncirculated coins grade higher. The better the condition, the more it's worth. That's the foundation, and everything else builds from there.
You don't need to be an expert to protect yourself as a buyer or seller. You just need enough knowledge to ask the right questions and recognize when something doesn't add up.
And that? You now have.
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August Keene is the founder of Numisteria, a coin collecting blog built for beginners. He learned the hard way so you don't have to.
