As of this writing, the Professional Coin Grading Service (PCGS) has certified more than 60 million coins since opening in 1986, and a single grade can swing the market value of rare coins by thousands of dollars.
So, what is coin grading? It’s the process of assigning a numeric or letter grade to a coin based on coin condition, eye appeal, and authenticity. An independent third party handles this work and seals the coin in a tamper-evident holder.
If you’re getting into coin collecting, here we cover the grading process, companies that offer grading, and what all of that means for the value of a coin you’re considering.
How coin grading works
A grader uses a bright lamp and a loupe to look at four key factors for each coin:
- How much circulation wear there is on the coin’s surface.
- How much original mint luster is still present.
- Strike quality of the coin.
- Any contact marks, scratches, or spots.
Each factor pushes the assigned grade up or down on the Sheldon scale, which runs from 1 to 70.
After grading, the coin gets encapsulated in a clear, tamper-evident plastic holder, often called a “slab.” The slab has a serial number, the grade, and a barcode you can verify on the grading company’s website. That holder is what protects the grade from changing through future handling.
Process expert graders use
Reputable services use at least two graders per coin, and they don’t see each other’s scores until both are submitted. A third grader steps in when the first two disagree. Consistent grading standards across submissions are what give the holder its weight in the market.
A coin that hasn’t gone through professional grading is called “raw.” A graded coin in a holder is called “certified” or “slabbed.” Collectors usually grade coins to lock in the condition, authenticate the piece, and make it easier to sell.
The Sheldon coin grading scale
The Sheldon scale was created by numismatist Dr. William Sheldon in 1949 to price large cents. It’s the grading scale that every major U.S. service uses in some form today. The scale runs from 1, the lowest grade where a coin is barely identifiable, to 70, a perfect coin with no flaws visible at 5x magnification.
Here’s how the grades break down on the Sheldon coin grading scale:
| Grade range | Designation | What you see on the coin |
| 1 to 3 | Poor / Fair (P, FR) | Heavily worn. You can tell what it is, but most major details are gone. |
| 4 to 6 | Good (G) | Major design elements and date readable. Rims may be worn into the field. |
| 8 to 10 | Very Good (VG) | More detail visible. Some letters and design elements still clear. |
| 12 to 15 | Fine (F) | All major design elements are visible. Moderate wear across the surface. |
| 20 to 35 | Very Fine (VF) | Light to moderate wear on high points. Most design details intact. |
| 40 to 45 | Extra Fine, sometimes called Extremely Fine (EF or XF) | Light wear on the highest points only. Some mint luster may remain. |
| 50 to 58 | About Uncirculated (AU) | Slight wear on the high points. Most of the original luster is still there. |
| 60 to 70 | Mint State (MS) | No circulation wear at all. The mint state grades separate uncirculated coins by marks, strike, and eye appeal. |
| 60 to 70 | Proof (PF or PR) | Specially struck collector coins with mirror or matte finishes. Graded on the same 60 to 70 range. |
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What the major grading abbreviations mean
The letter codes you’ll see on holders and price guides are shorthand for grade ranges. These are on the dealer listing or Greysheet:
- MS (Mint State): A business-strike coin that never circulated. Followed by a number from 60 to 70 (MS-63, MS-65, MS-70). Coins with exceptional eye appeal at a given number tend to bring premium bids over the average example at the same grade.
- PF or PR (Proof): A coin specially struck on polished dies for collectors. Followed by 60 to 70 (PR-69 DCAM, for example). Proofs are not necessarily older or rarer than mint state coins, just produced differently.
- AU (About Uncirculated): A coin with slight wear on the very highest points, otherwise lustrous. AU-58 is the top of the circulated range and often looks indistinguishable from a low-grade Mint State coin to a casual eye.
- XF or EF (Extra Fine, also Extremely Fine): Light overall wear. Some original mint luster usually remains in protected areas of the design.
- BU (Brilliant Uncirculated): A general term for uncirculated coins with full luster. It’s not a precise numeric grade. Sellers sometimes use it loosely on raw coins.
- DCAM or DPL (Deep Cameo / Deep Mirror Prooflike): A descriptor added to proof or prooflike coins with very strong contrast between frosted devices and mirrored fields.
- FB, FBL, FH, FS: “Full” designations for specific design details. FB (Full Bands) on a Mercury Dime means the bands on the fasces are fully struck. These designations can add higher premiums.
The major coin grading companies
A coin graded by a respected service usually sells for more than the same coin graded by a less recognized one. The four most widely accepted U.S. grading services are:
| Company | Founded | Known for |
| PCGS (Professional Coin Grading Service) | 1986 | The original third-party grader. Wide acceptance in U.S. and modern coins. Strong online verification tools. |
| NGC (Numismatic Guaranty Company) | 1987 | The other half of the “big two.” Strong reputation for world coins, ancients, and modern issues alongside U.S. coins. |
| CAC (Certified Acceptance Corporation) | 2007 | Re-evaluates already-graded PCGS and NGC coins. A green “CAC sticker” signals a coin is solid for the grade, often commanding a price premium. |
| ANACS (American Numismatic Association Certification Service) | 1972 | The oldest grading service. Known for accuracy on early U.S. coins and varieties. Lower price tier than PCGS or NGC for many holders. |
The same coin can sell for different amounts depending on who graded it, since price guides like the Greysheet list PCGS and NGC coins separately and the two companies apply the Sheldon scale a little differently.
How much does coin grading cost
Grading fees depend on the value of the coin, how fast you need it back, and how many you submit at once. Published service tiers from PCGS and NGC look roughly like this, as of this writing:
| Tier | Coin value cap | Approximate fee per coin | Typical turnaround |
| Economy / Value | Up to about $300 | $20 to $25 | 30 to 60 business days |
| Standard | Up to about $1,500 | $40 to $50 | 15 to 25 business days |
| Express | Up to about $10,000 | $80 to $100 | 5 to 10 business days |
| Walkthrough / High Value | Unlimited | $200 and up | 1 to 3 business days |
Other costs include shipping, insurance, and a membership fee that ranges from about $69 to a few hundred dollars per year depending on the service. Many collectors submit through a dealer who’s already a member to avoid that membership cost.
What coin grading means for investors
For an investor in physical precious metals, grading helps you protect your investment by:
- Authentication: A coin in a PCGS or NGC holder has been examined under magnification, weighed, and confirmed genuine.
- Liquidity: A certified coin sells in a defined, two-way market. Bid prices for popular series like Morgan Silver Dollars and $20 Saint-Gaudens are published daily in industry sheets, graded by service. A raw coin sells case by case.
- Value clarity: Two coins with the same date and mint can be priced very differently because of grade. A graded holder removes the back-and-forth over what a coin “really is” because a third party has already made the call, and that drives the market valuation a dealer will quote.
The grade on the holder is the number buyers use to set a price, but two coins with the same grade can still look different. A bright, clean coin is worth more than a dull, stained one, even when both have the same number. CAC reviews graded coins and adds a green sticker to the better ones for that grade.
Final thoughts on coin grading
Coin grading is the language of value in the numismatic market. Dealers, auction houses, and other collectors use the number on the holder to price a coin. It’s also what your buyback will be based on if you ever sell.
To learn more about certified coins and how to add them to your portfolio, connect with the Swiss America team today!
Coin grading: FAQs
What does MS mean in coin grading?
MS stands for Mint State, a business-strike coin that never circulated. It’s followed by a number from 60 to 70 indicating how clean the surfaces are.
- The scale: MS-60 is the floor. The coin is uncirculated but heavily marked. MS-70 is theoretical perfection with no flaws under 5x magnification.
- Premiums: MS-65 is usually the threshold where prices increase for classic U.S. coins like Morgan Dollars or $20 Saint-Gaudens.
- MS vs. PR: Mint State and Proof use the same 60 to 70 scale, but Proof coins are struck on polished dies for collectors and are graded as a separate category.
What does AU mean in coin grading?
AU stands for About Uncirculated, the top tier of circulated grades, covering the range from AU-50 to AU-58.
- Visual cue: The coin shows light wear only on the very highest points of the design, with most of the original mint luster still present.
- AU-58 oddity: An AU-58 coin often looks better to the naked eye than a marked-up MS-60 because the wear is so light. Some collectors specifically chase high-end AU coins.
- Value gap: The price jump from AU-58 to MS-60 can be large for popular series, even though the visible difference is small.
How does coin grading work in practice?
Two or more independent graders examine each coin under magnification, and consensus determines the final grade. From there, the coin gets sealed in a serial-numbered holder.
- What graders look at: Wear, luster, strike quality, marks, and overall eye appeal. Each factor pushes the grade up or down.
- The Sheldon scale: Grades run from 1 to 70. Most investment-grade coins fall in the AU-50 to MS-65 range.
- Verification: Every holder has a barcode and certification number you can check on the grading service’s website to confirm the grade is real.
How much does coin grading cost?
As of this writing, coin grading runs from about $20 per coin on the economy tier up to $200 or more for high-value or rush submissions, plus shipping, insurance, and a membership fee.
- What drives the fee: The value of the coin and how fast you need it back. Higher tiers come with faster turnaround and a higher value cap.
- Membership: PCGS, NGC, and ANACS all require an annual membership for direct submissions. Most collectors submit through a dealer to avoid that cost.
- When it pays off: Grading makes sense when the value of the coin once graded clears the cost of the fee, shipping, and time.
What is the best coin grading service?
PCGS and NGC are the two services with the broadest market acceptance, and coins certified by either tend to command the strongest bids.
- PCGS: Founded in 1986 and considered the standard for U.S. coins.
- NGC: Founded in 1987 and the other half of the “big two,” with strength in world coins and modern issues.
- CAC stickers: A green CAC sticker on a PCGS or NGC holder signals a coin is solid for the grade and often adds a premium on top of the assigned grade.
The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
