Coin grading assigns a number from 1 to 70 to a coin’s condition, using the Sheldon scale developed by Dr. William Sheldon in his 1948 book Early American Cents. The scale runs from PO-1 (barely identifiable) to MS-70 or PF-70 (perfect). Everything above MS-60 is uncirculated; everything below AU-50 shows clear wear from circulation. The grade matters enormously for numismatic value — and not at all for melt value.
The Two Major Grading Services
Before getting into grade ranges, understand who sets the standard in practice:
PCGS (Professional Coin Grading Service). Founded in 1986, PCGS introduced the concept of encapsulated third-party coin grading. Their sealed plastic holders (“slabs”) display the grade and guarantee authenticity. PCGS grades according to Sheldon standards and publishes detailed written descriptions and photo sets for each grade at PCGS.com/grades.
NGC (Numismatic Guaranty Company). Founded in 1987, NGC operates on the same Sheldon 70-point scale and maintains similar grade standards. NGC is the official grading service of the American Numismatic Association (ANA).
Both services are widely accepted. A coin graded MS-65 by PCGS and one graded MS-65 by NGC for the same type and date sell for comparable prices in the dealer and auction market, though minor price differences exist depending on the type and collector preferences.
The Sheldon Scale: Grade Ranges
The scale divides into two broad sections: uncirculated (MS-60 and above) and circulated (everything below AU-50).
Mint State (MS-60 to MS-70): Uncirculated
| Grade | Description |
|---|---|
| MS-70 | No post-production imperfections at 5x magnification. Perfect. Extremely rare. |
| MS-69 | Virtually perfect; nearly imperceptible imperfections on close inspection. |
| MS-67 | Sharply struck; only a few imperfections visible without magnification. |
| MS-65 | Well struck; moderate marks or hairlines, but an attractive coin overall. |
| MS-63 | Average or slightly weak strike; moderate abrasions and hairlines. |
| MS-60 | No wear, but heavily marked with numerous abrasions, hairlines, or large marks. |
PCGS and NGC assign a “+” designation to coins at the high end of a grade range, approaching the next grade. Plus grades (e.g., MS-64+) typically sell for more than standard examples of that grade.
About Uncirculated (AU-50 to AU-58)
These coins show slight wear only on the highest points of the design. Much of the original luster remains.
| Grade | Description |
|---|---|
| AU-58 | Slightest friction on the highest points; virtually full luster remains. |
| AU-55 | Light friction on high points; considerable luster remains. |
| AU-50 | Trace of wear on high points; bits of luster may remain. |
AU coins represent the transition from uncirculated to circulated. A coin grading AU-58 can be confused with an MS coin by inexperienced eyes, which is why professional grading matters for these borderline pieces.
Circulated Grades (EF-40 through PO-1)
| Grade range | Labels | Description |
|---|---|---|
| XF-40 to XF-45 | Extremely Fine | High points worn; all design elements complete; little or no luster. |
| VF-20 to VF-35 | Very Fine | Moderate wear; major design features clear and sharp. |
| F-12 to F-15 | Fine | About half the fine detail worn flat; all lettering visible. |
| VG-8 to VG-10 | Very Good | Considerable wear; major design visible but much detail gone. |
| G-4 to G-6 | Good | Design mostly flat; rims mostly full; peripheral lettering present. |
| AG-3 | About Good | Most letters readable; rims worn into fields. |
| FR-2 | Fair | Entire coin worn flat; only traces of lettering visible. |
| PO-1 | Poor | Barely identifiable as to type, date, and mintmark. |
How Grade Affects Melt Value vs. Numismatic Value
Grade has zero effect on melt value. A Morgan dollar in G-4 and one in MS-65 both contain 0.7734 troy ounces of silver. At October 7, 2026 spot prices ($60.73/ozt), both have a melt value of $46.97. The grade changes only the numismatic premium layered on top of that floor.
For the most common Morgan dollar date (1921), the numismatic premium by grade looks roughly like this:
| Grade | Approximate retail value | Numismatic premium above melt |
|---|---|---|
| G-4 | $50–$60 | $3–$13 |
| VF-20 | $55–$70 | $8–$23 |
| MS-63 | $75–$110 | $28–$63 |
| MS-65 | $120–$200 | $73–$153 |
| MS-67 | $1,000+ | $953+ |
Retail value ranges are approximate and change with market conditions. Melt value based on October 7, 2026 snapshot price.
The same coin in MS-67 is worth 20 times what it is in G-4, even though both coins are equally silver. This is why grade identification matters before you sell — a dealer paying “melt value” for an MS-65 coin is dramatically underpaying. See melt value vs. numismatic value for a full discussion.
What Grade Should You Get Certified?
Professional certification fees run $25–$75 per coin at PCGS and NGC depending on declared value, turnaround time, and membership status. It only makes sense to certify when the expected numismatic premium above melt justifies the fee and turnaround time.
General rules:
- MS-63 and above: For common-date silver dollars, Mercury dimes, or any type where there is an active market for certified coins, certification adds credibility and often a meaningful price premium.
- AU-55 and above on scarce dates: Professional certification protects against disagreements over whether a coin is circulated or uncirculated.
- Key dates at any grade: An 1893-S Morgan in G-6 still benefits from certification because the authentication function proves it is not a doctored common date.
- Worn, common-date junk silver: No. The cost of certification exceeds any premium it would add. Common 90% coins in circulated grades trade at melt. Submit them to the coin-melt-value calculator instead.
Quick Field Grading Guide
If you want to estimate a coin’s grade before deciding whether to submit it:
- Examine under 5x–10x magnification in good, diffused light (not direct sunlight).
- Tilt the coin under the light to reveal marks and luster. A freshly struck coin will show a “cartwheel” luster as you rotate it.
- Check the highest design points first — that is where wear appears first. On a Morgan dollar, check the hair above Liberty’s ear and the eagle’s breast feathers.
- If you see any wear at all on the highest points, the coin is not Mint State.
- Count marks and abrasions in the open fields (background areas). More marks = lower MS grade.
Field grading is useful for sorting but should not replace professional certification for high-value pieces. A single grade point in the MS-63 to MS-65 range can represent hundreds of dollars of value, and experienced collectors and dealers have spent decades calibrating their eye to these standards.
For circulated silver coins destined for sale as bullion, grade still matters in one way: some dealers pay slightly more for coins grading VF-20 or better because they are in better cosmetic condition and easier to resell as individual pieces rather than bulk junk.