US Gold Coins: Grading and Value

Among the 100 million gold coins minted pre-1933, a mere 5 percent have found their way to the numismatic coins market. Having survived two meltdowns, in 1834 and 1933, the remaining US gold coin specimens are in high demand in the coins as well as gold markets. Besides high demand and low supply, American gold coins are valued for their high gold content; some series having as much as 90 percent gold composition.

US Gold Coins: Factors Affecting Grading

The primary factor affecting a US gold coin’s grading (and its value) is its design and other elements, such as the image/portrait and mint dates on the coins. The more clearly these are readable and identifiable, the better grading the coin has. Other key factors affecting the grading of US gold coins are:

• The surface: This is a highly sensitive part of a coin, vulnerable to scratches, dents and stains. Even a small nick on Lady Liberty can drastically lower the coin’s grade.
• The luster: This implies the shine of the coin; the better the shine, the higher the grade. Bear in mind that the more hands these coins pass through, the more likely they are to lose their luster and appear dull.

US Gold Coins: Grading Mechanism

US gold coins are typically graded on a 70-point scale by numismatists as well as certified coin grading services. This point system is known as the Sheldon Scale. Note that different descriptions and grading terms may be used by different grading companies. Typically, US gold coins are graded in the following categories:

Abbreviation Description Numerical Grade
P Poor 1
FR/FA Fair 2
AG About Good 3
G Good 4, 6
VG Very Good 8, 10
F Fine 12-15
VF Very Fine 20
XF/EF Extremely Fine 40-45
AU Almost Uncirculated/ About Uncirculated 50-58
UNC/MS Uncirculated/ Mint State 60-70

US gold coins may also be net graded. This form of grading is used for coins that have some issues. For instance, a coin may have an XF grade, but has been scratched or corroded over time. Such a coin may be given a "net" grade, let’s assume VF, to reflect the undesirable problems. Net grading implies that while the coin may technically have an XF grade, its market value is likely to be around the average of a VF graded coin. Net grading is applied on as much as 25 percent of the US gold coins in circulation today.