If you are looking at graded coins for the first time, the numbers can feel confusing. Once you understand how the scale works, those numbers become a quick way to judge condition, compare coins, and understand where premiums start to build.
Coin grades run from 1 to 70 on the Sheldon scale, where 1 means a coin is barely identifiable and 70 means it's perfect. Numeric grades below 60 describe coins with some degree of wear, while grades from 60 through 70 are Mint State and show no wear from circulation. Grades 60 and above are Mint State, meaning no wear from circulation. Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Company (NGC) are the two leading third-party grading services, and their certifications are the standard the market uses to price, buy, and sell coins with confidence.
The 70-point grading scale was developed in 1940s by Dr. William Sheldon, a numismatist who originally created it to describe large cents. The scale was eventually adopted across all U.S. coin series and became the foundation for modern third-party grading.
Before standardized grading existed, buyers and sellers described coins in broad, subjective terms. One dealer's "fine" was another dealer's "very fine." The numeric scale brought consistency to a market that badly needed it.
PCGS was founded in 1986, and NGC shortly after. Both services employ teams of expert graders who evaluate coins independently, assign a numeric grade, and seal the coin in a tamper-evident plastic holder called a slab. The grade and coin details are printed on the label inside.
The slab protects the coin and preserves a verifiable record of the grade assigned at the time of certification. A PCGS or NGC certified coin can change hands without the buyer ever touching the coin directly, which reduces the risk of damage and fraud. For coins with meaningful collector value, certification can improve buyer confidence, marketability, and price transparency.
Circulated coins show wear from handling and general use. The degree of that wear determines the grade. Here's how the major circulated grades break down:
AG-3 (Almost or About Good): Very heavily worn, with most interior detail gone. The coin remains identifiable, although parts of the date, lettering, or rim may be weak.
G-4 to G-6 (Good): Heavily worn but the design is visible throughout. Major features are flat and details are faint. Common dates may remain relatively close to their metal value, while scarce dates and varieties can be worth considerably more.
VG-8 to VG-10 (Very Good): Moderate to heavy wear across the design, but major features are clear. A step up from Good in eye appeal.
F-12 to F-15 (Fine): Moderate, generally even wear. The major design elements remain visible, although finer details are worn.
VF-20 to VF-35 (Very Fine): Light to moderate wear on the high points only. Considerable detail still shows. A VF Morgan dollar looks genuinely attractive at arm's length.
EF-40 to EF-45 (Extremely Fine): Only slight wear on the very highest design points. Traces of luster may remain. These coins look nearly uncirculated to the untrained eye.
AU-50 to AU-58 (About Uncirculated): Minimal wear on the highest points, with significant original luster remaining. An AU-58 can be challenging to distinguish from a Mint State coin without magnification.
A Mint State coin shows no wear from circulation. That doesn't mean all Mint State coins look the same. The difference between MS-60 and MS-65 can be dramatic, and the difference between MS-65 and MS-70 can be worth thousands of dollars on rare dates.
MS-60 to MS-62: No wear, but significant contact marks, bag marks, or surface imperfections. These coins look uncirculated but lack the clean surfaces collectors prefer.
MS-63 (Choice Uncirculated): A few noticeable contact marks or blemishes, but overall an appealing coin. MS-63 is one of the most common grades in the market and a reasonable starting point for collectors who want a Mint State example at a manageable price.
MS-64: Fewer imperfections than MS-63, with above-average luster and strike. The step between MS-63 and MS-64 is one of the most meaningful jumps in terms of eye appeal.
MS-65 (Gem Uncirculated): Strong luster, well struck, with only minor contact marks that don't detract from the coin's overall appeal. Depending on the series and date, MS-65 can represent an important premium threshold because examples at this grade may be substantially scarcer than lower-grade Mint State coins.
MS-66 to MS-68: Increasingly clean surfaces, strong strikes, and superior luster. These grades are rare for most series and represent exceptional examples.
MS-69 to MS-70: Near-perfect to perfect. MS-70 is technically flawless under any magnification. For most classic coins, MS-70 is either extraordinarily rare or doesn't exist.
Proof coins are specially struck for collectors rather than circulation. They're made using polished dies and planchets, and they go through the minting process at least twice to produce sharper detail and mirror-like fields. They receive PR or PF grades rather than MS grades, using the same 60-70 scale.
A PCGS PR-70 Deep Cameo or NGC PF 70 Ultra Cameo represents the highest numerical grade combined with strong contrast between frosted design elements and mirrored fields. Modern Proof bullion coins are commonly submitted for grading, where high-grade examples may receive Cameo, Deep Cameo, or Ultra Cameo designations.
For an inexpensive common-date Morgan dollar in circulated condition, professional grading may not be cost-effective because the grading and shipping costs could exceed any additional value created by certification.
For a key date, a better-date issue, or any coin with significant collector value, grading matters considerably. The difference between a certified AU-58 and MS-62 on a valuable coin can mean hundreds or thousands of dollars. Certification provides a professional opinion of authenticity and grade backed by the grading service’s applicable guarantee.
Ungraded coins are called raw. Raw coins are perfectly fine for common-date silver purchases where metal value is the primary driver. Once a substantial portion of a coin’s value comes from rarity or condition, certification from an established grading service can offer additional confidence in its authenticity and assigned grade.
What is the difference between PCGS and NGC? Both are highly respected third-party grading services that use the 1–70 scale. However, each service applies its own grading standards, and a coin is not guaranteed to receive the same grade from both companies. Market preferences can also vary by coin series and individual collector.
What does MS-65 mean on a coin? MS-65 stands for Mint State 65, also known as Gem Uncirculated. It means the coin shows no wear from circulation, has strong luster and a well-executed strike, and has only minor contact marks that don't significantly affect its appearance. Depending on the series and date, MS-65 may represent an important premium threshold because coins at this grade can be significantly scarcer than lower-grade examples.
What is a slab? A slab is the tamper-evident plastic holder used by PCGS and NGC to encapsulate certified coins. The holder protects the coin from handling damage and displays the grade, coin details, and a unique certification number that buyers can verify on the grading service's website.
Is a higher grade always worth more? Usually, but not automatically. When comparing otherwise equivalent coins of the same issue, a higher grade generally brings a higher price. Variety, eye appeal, strike designation, color, population, and current demand can also affect value.
Should I send my coins to PCGS or NGC to get graded? It depends on the coin's value. Grading services charge fees, so it only makes financial sense to submit coins that will be worth meaningfully more certified than raw. If a coin's value is primarily in its metal content, grading typically isn't worth the cost.