How to Read a Coin Grade (And Why MS-65 Means Something Very Different from MS-63)

How to Read a Coin Grade (And Why MS-65 Means Something Very Different from MS-63)

By August Keene

The first time someone told me a coin was "MS-63," I nodded like I understood exactly what that meant.

I didn't.

It sounded official. It sounded like it meant something. But I had no idea what the number referred to, why it mattered, or how a two-point difference could translate into a price difference of hundreds of dollars.

If that sounds familiar, you're in good company. Coin grading is one of those things that experienced collectors toss around like it's common knowledge — and beginners are just supposed to figure it out.

Let me save you the confusion I went through.

Why Coin Grades Matter More Than Most Beginners Expect

Here's the thing I wish someone had told me early: the grade of a coin isn't just a description. It's a price multiplier.

Two coins can have the same date, the same mint mark, and look similar to an untrained eye — and one can be worth five times more than the other. Sometimes ten times more. The only difference is the grade.

That's not an exaggeration. A 1881-S Morgan Dollar in MS-63 might sell for around $80. The same coin in MS-65 can sell for $400 or more. Same coin. Same year. Same mint. Two different grades.

Once you understand why, the whole grading system starts to make sense.

Where the Numbers Come From

Coin grading in the United States uses the Sheldon Scale, a numerical system that runs from 1 to 70. It was developed by Dr. William Sheldon in 1949 and has been the industry standard ever since.

The scale divides into broad categories:

Poor to About Good (P-1 to AG-3): Barely identifiable. The design is mostly worn away. You can tell it's a coin, but details are nearly gone.

Good to Very Good (G-4 to VG-10): Heavy wear throughout. The major design elements are visible but flat. Common dates at this level are worth melt value or close to it.

Fine to Very Fine (F-12 to VF-35): Moderate wear. Design details are clear but high points show obvious smoothing. This is where a lot of circulated coins land.

Extremely Fine to About Uncirculated (EF-40 to AU-58): Light wear only on the highest points. An AU coin can look almost uncirculated to the naked eye, but a trained eye will spot the friction.

Mint State (MS-60 to MS-70): No wear at all. The coin has never been used in circulation. This is where things get interesting — and where the price differences get dramatic.

The Mint State Range: Where Two Points Can Mean Everything

Most beginners assume "uncirculated" is uncirculated. Either the coin has wear or it doesn't. But within the Mint State range, there's a whole world of difference — and it comes down to something other than wear.

What separates MS-60 from MS-70 isn't circulation. It's contact marks, luster, and eye appeal.

When coins are struck at the mint, they get tumbled into bags together and shipped. They bang against each other. They get counted, moved, stored. All of that handling leaves tiny marks — called bag marks or contact marks — even on coins that were never used in commerce.

The higher the MS grade, the fewer and less noticeable those marks are.

Here's how to think about each level:

MS-60 to MS-62: Uncirculated, but heavily marked. The luster may be dull or uneven. Eye appeal is poor. These coins look like they've had a rough time in the bag. Common dates at this level aren't worth much of a premium over circulated examples.

MS-63: This is where most "nice" uncirculated coins land. Some contact marks visible, but they're not distracting. Luster is present. This is what a lot of people picture when they imagine an uncirculated Morgan Dollar. Solid coin. Respectable value.

MS-64: Noticeably cleaner than MS-63. Contact marks are minor and don't draw your eye away from the design. Good luster. This is the sweet spot for a lot of collectors — nicer than average without the premium of MS-65.

MS-65: This is where the jump gets serious. An MS-65 coin has strong, attractive luster and only a few small contact marks — and those marks have to be in non-focal areas (not on Liberty's cheek, not in the center of the eagle). The coin looks genuinely impressive in hand. This grade commands a real premium.

MS-66 and above: Exceptional coins. The contact marks are minimal or microscopic. The luster is vibrant. These are coins that stand out even among other uncirculated examples. MS-66 and MS-67 coins are scarce for most dates — and MS-68 and above can be worth extraordinary sums.

MS-70: Theoretically perfect. No marks visible under 5x magnification. In practice, true MS-70s are extremely rare and almost never seen outside of modern bullion coins.

The Three Things Graders Actually Look At

Professional graders at PCGS and NGC evaluate every coin on three criteria. Understanding these helps you start reading coins yourself.

1. Strike
How sharply were the details pressed into the coin when it was minted? A well-struck Morgan Dollar will have crisp hair detail on Liberty and sharp feather definition on the eagle. A weakly struck coin — even an uncirculated one — looks soft and mushy in the details.

Strike doesn't directly change the grade number, but it influences eye appeal and can affect value. A coin noted as "PL" (Proof-Like) or "DMPL" (Deep Mirror Proof-Like) has an especially reflective surface that commands its own premium.

2. Luster
Fresh coins have a subtle cartwheel shine when you rotate them under light — the metal flows in a pattern from the strike that catches light in a distinctive way. That's luster. As coins age, get handled, or get cleaned, they lose it.

Luster is one of the first things an experienced collector notices. A coin with original, undisturbed luster looks alive. A coin that's been cleaned or stored poorly looks flat and dead by comparison.

This is also why cleaning destroys value. The moment you wipe a coin — even with a soft cloth — you disturb the luster in ways that are immediately obvious to anyone who knows what to look for.

3. Eye Appeal
This one is subjective, but it's real. Some coins just look better than others at the same technical grade. The contact marks might be in less distracting locations. The toning might be attractive rather than blotchy. The strike might be above average.

Graders factor this in, and so do collectors. Two MS-64 coins from the same year can sell for very different prices if one has noticeably better eye appeal.

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What About Circulated Grades?

If you have coins that were clearly used — worn edges, flattened high points, smooth cheeks on Liberty — they fall somewhere in the circulated range. Here's a quick field guide.

G-4 (Good): The outline of the design is clear but almost all detail is gone. The date and mint mark are readable. Very common dates at this level are worth melt value.

VG-8 (Very Good): Some detail returns. Liberty's hair shows some separation. The eagle's feathers have some definition. Still heavily worn.

F-12 (Fine): About half the original detail is visible. The high points are worn but you can see the design clearly. A lot of inherited coins land here.

VF-20 to VF-35 (Very Fine): Light to moderate wear on high points only. Most of the design detail is sharp. This is a respectable grade for a circulated coin.

EF-40 to EF-45 (Extremely Fine): Only slight wear on the very highest points. Looks almost uncirculated. Significantly more valuable than VF for key dates.

AU-50 to AU-58 (About Uncirculated): Trace wear only — sometimes barely visible without a loupe. These coins often have significant remaining luster. AU-58 is sometimes called a "slider" because it's so close to uncirculated.

How to Start Reading Grades Yourself

You don't need to become an expert. But a few habits will help you start seeing what graders see.

Get a loupe. A 5x or 10x magnifying loupe costs very little and changes everything. Marks that are invisible to the naked eye become obvious under magnification.

Look at the high points first. On a Morgan Dollar, that's Liberty's cheek and the hair above her ear on the front, and the eagle's breast feathers on the back. Wear shows up there first.

Rotate the coin under a light. Watch how the luster moves. Original luster has a flow to it. A cleaned coin looks flat no matter how you tilt it.

Compare to reference images. PCGS CoinFacts shows graded examples at every level. Find your coin's date and look at the MS-63 vs MS-65 examples side by side. Your eye will start to calibrate.

Should You Trust the Grade on a Slab?

If a coin comes in a PCGS or NGC holder — the hard plastic case with a grade printed on it — that grade is reliable. Both services are the industry standard, and their grading is consistent enough that the market prices coins based on it.

If someone shows you a coin in a different holder — a third-party service you've never heard of — be cautious. There are low-quality grading services that inflate grades and charge fees. A coin "graded" MS-65 by an unknown service might be MS-62 by PCGS standards.

When in doubt, buy the coin, not the slab — unless the slab is from PCGS or NGC.

Why This All Matters When You're Selling

If you're thinking about selling coins from an inherited collection, understanding grades protects you.

Dealers know exactly what grade your coin is. If you don't, you're negotiating blind. A dealer who offers you $40 for an MS-64 Morgan might be completely honest — or they might be counting on the fact that you don't know what you have.

The fix is simple: look up recent sold listings on eBay for your specific coin and grade before you walk into any shop. Know the number before the conversation starts.

And if you want a full walkthrough of how to sell without leaving money on the table, How to Sell Coins: A Simple Guide for Beginners (Without Getting Ripped Off) covers exactly what to watch out for — from getting multiple offers to understanding what dealers are actually doing when they examine your coins.

The Bottom Line

Coin grading isn't as complicated as it first appears. Once you understand that the Sheldon Scale measures wear in circulated coins and contact marks plus luster in uncirculated ones, the numbers start to make intuitive sense.

MS-63 and MS-65 aren't just two points apart on a scale. They represent a real, visible difference in how a coin looks — and that difference is worth real money.

Take the time to learn what you're looking at. Your coins will thank you for it.

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.

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