How silver dollars are graded.
Posted by SA on 23 Jun 2010 | Tagged as: Coin Collecting
All silver coins, including silver dollars, vary widely in price depending on a number of factors, notably scarcity, desirability, and condition. But how is condition established? You may think a coin looks pretty good, while the dealer you’re trying to sell it to may think it looks pretty bad. So in order to reach a fair price for both buyer and seller, it’s important for both parties to agree on condition.
In order to establish a standard reference, in the 1950s, psychologist and coin collector William H. Sheldon came up with the scale that’s widely used today. It rates coins from 1 to 70, based on the quality of the coin when it was first struck, the integrity of the metal, and the wear and damage that’s occurred since the coin was first minted.
An uncirculated silver dollar
Perhaps you’ve looked at coins online or in coin shops, and seen the designation AU-58 or MS-65. If you weren’t clear about what that meant, this will help clarify. And having a decent grasp of silver coin grading will keep you from overpaying for your coins.
First of all, coins are divided into three groups – circulated, almost uncirculated, and uncirculated. Coins in the first group can be Poor (P1), Fair (FR-2), Good (G-4), Very Good (VG-8), Fine (F-12), Very Fine (VF-20), and Extremely Fine (EF-40).
There’s little dispute about coins in the Poor to Extremely Fine group. These coins were used as currency, and changed hands – sometimes often. To grade one yourself, get the same coin in mint condition if you can. That way, you’ll have something to compare it to.
You’ll also need a magnifying glass that magnifies up to eight times, and a good source of light. Examine the coin carefully to see if there are any signs of wear. If there’s no visible wear whatsoever, you can classify your coin as uncirculated. If there are some signs of wear – and even coins that have never been in circulation can be damaged by coin counters or mishandling – then it needs to go into one of the other groups.
Poor coins are just that. Fair coins have a lot of wear. You may not be able to read the date, mint mark, or other inscriptions. Even coins in fair condition can be worth collecting, depending on the other factors. Good coins (4-8) will range from some wearing of the date to an unbroken ridge around the edge of the coin.
Most of the design is visible in Fine coins. There may be a little wear evident in finer details such as hair or feathers, but overall, the coin is in good shape. Extremely Fine coins have hardly any visible wear, although they won’t have quite the luster of a AU coin.
A Morgan Silver dollar that’s been in circulation
Coins in the Almost Uncirculated group can range from AU50 to AU 58, and it’s very difficult for beginners to tell the difference. There will only be a slight amount of wear on the highest spots of the coin. And curiously, top-grade AU coins often look better than lower-grade MS or Mint State coins.
Uncirculated coins – from MS60 – MS-70 – have no visible wear. But even a coin that appears to be perfect to an untrained eye probably won’t be an MS-70. Those are extremely rare, even though they have never been circulated.
It’s relatively easy to establish the grade of a silver dollar that you’re trying to sell. Just visit a couple of dealers. If you’re buying, you’ll need to be more cautious. If you buy Almost Uncirculated or Good-quality coins, you’ll have an easier time of it.
Read more about collection silver dollars.
An uncirculated silver dollar courtesy of the U.S. Mint
A Morgan Silver dollar that’s been in circulation Image Flickr: Jeffrey Beall