The condition of the coin is vital because after rarity and demand, it is the most important factor to the coin’s value.

Generally, the higher the coin’s grade, the greater the value of the coin. 

Since there are always exceptions to this generalization, collectors have created systems to describe the overall condition of coins.

Certain characteristics of a coin influence its grade.

For instance, surface condition, strike, eye appeal and luster are all factors in figuring out a coin’s grade.

If any of these qualities are lacking, the grade and value of the coin goes down.

Often times, the differences in quality among coins are so subtle it is hardly noticeable and requires a trained eye to give it a grade.

Even expert graders will assign slightly different grades to the same coin leaving the final grade in the hands of opinion.

Even though it takes talent and experience to grade coins accurately on a consistent basis, beginners can become reasonably close to approximating grades with a few simple guidelines.

The American Numismatic Association’s 0-70 point numeric system is often used to assign the grade of a coin.

Uncirculated is the highest grade given to a coin and can also be referred to as mint state. 60 is the lowest grade given to an uncirculated or proof coin.

At this level, it has no trace of wear but may show a few contact marks or the surface may be spotted or lacking of luster.

An uncirculated coin with a grade of 70 is in perfect new condition with no trace of wear, no scratches, or evidence of handling or contact with other coins.

Proof is also a very high quality grade for a coin. 

But, it refers to the method of manufacture and it is not a condition.

It’s a specially made coin distinguished by the sharpness of the coins detail and usually has a mirror-like surface.

Choice About Uncirculated or AU-55 refers to a coin that has less than trace wear on only the highest points of the design and does not contain any other defects and still has most of its luster.

About Uncirculated, AU-55, has at least half of the original mint luster but has trace wear on many of the highest areas of the design.

Extremely Fine, EF-40, has noticeable wear, but contains its sharp features.

The grades of the coins go down from there from Very Fine, Fine, Very Good, Good to About Good. Damage of any kind like holes, edge dents, repairs, cleaning, re-engraving or gouges can drastically reduce the grade and therefore the value of a coin.

Coins are sometimes cleaned or polished in an attempt to pass them off as higher grades or as uncirculated strikes.

Cleaned coins can substantially lower the value and grade.

When there is a big difference between the two sides of a coin, a split grade may be assigned. 

Split grades are indicated by a "/" between the grade. For example, "AU/EF" means that one side is AU and the reverse side is EF.