Coin grading is the practice of assessing a coin's state of preservation on a standardised scale. It is the common language of the collecting market — the shorthand that allows a buyer and seller who have never met to communicate meaningful information about a coin's condition without the coin being physically present between them.

For the decimal collector, understanding grading is not optional. The difference between a Fine and an Uncirculated example of the same coin can be a factor of ten in value — or, for key dates, considerably more. Collecting with no knowledge of grading is collecting blind.

The Descriptive Grades

Poor (P) / Fair (F). The lowest grades. The coin is identifiable but heavily worn. Major design elements are visible but legends and fine details may be partially obliterated. These grades apply to coins in the worst circulated condition and are rarely of interest to collectors unless the coin is genuinely rare in any grade.

About Good (AG) / Good (G). Major design elements clear but significantly worn. The design is complete but surface detail is minimal. Still heavily circulated.

Very Good (VG). Clear design with moderate to heavy wear. High points of the design are flat but the overall design is well-defined. For common dates, this grade is of limited collecting interest. For rare dates — the 1930 penny, the 1992 dollar — even this grade represents a significant acquisition.

Fine (F). Moderate wear across all design elements. The coin has clearly been in circulation but retains its overall design clarity. The highest points of relief show wear, legends are full and clear, and the date is sharp.

Very Fine (VF). Light to moderate wear. The design is well-defined, with wear appearing on the highest relief points only. The coin retains significant detail. For many decimal date runs, Very Fine is the minimum acceptable grade for a collection that will be presented with pride.

Extremely Fine (EF / XF). Very light wear on the very highest points only. The coin appears almost unworn to the naked eye. Nearly all design detail is present. A well-struck Extremely Fine coin is a genuinely handsome object.

About Uncirculated (AU). Only traces of wear on the highest relief points, usually from a brief period in circulation or from handling. The original mint lustre may be partially disrupted. This grade occupies the transitional zone between circulated and uncirculated coins.

Uncirculated and Mint State Grades

Uncirculated (UNC). The coin has never been in general circulation. The original mint lustre is present. Under the Sheldon numerical scale — used by third-party grading services — Uncirculated coins are graded MS60 through MS70, with MS70 representing a theoretically perfect coin with no post-mint imperfections visible under 5x magnification.

Within the Uncirculated range, the distinctions are significant. MS60 to MS63 describes coins with noticeable bag marks or contact marks from mint handling — technically uncirculated but imperfect. MS64 to MS66 describes coins with progressively fewer and less significant contact marks. MS67 and above describes coins approaching and reaching exceptional quality.

Proof. Not a grade in the conventional sense but a method of manufacture. Proof coins are struck from specially prepared dies onto specially prepared planchets, typically multiple times, to produce coins with mirror-field surfaces and frosted device cameo contrast. Proof coins are not intended for circulation and represent the finest quality production from any mint. The Royal Australian Mint releases an annual proof set containing proof strikes of every circulating denomination.

A Note on Cleaned Coins

Grading assumes original surfaces. For more on why cleaning is irreversible, see our guide to the care and storage of coins. A coin that has been cleaned — polished, dipped, wiped — does not grade as the same coin with original surfaces, regardless of how it appears to the naked eye. Under magnification, cleaning creates fine surface abrasion that is permanent and immediately identifiable to an experienced eye. Cleaned coins trade at significant discounts to genuinely uncirculated examples, and experienced collectors develop the ability to spot cleaned surfaces reliably. When in doubt about any coin offered for sale, examine it under magnification before purchase.