When you first start collecting coins to run up against a grading system that you need to understand. Grading a coin is simply a method of determining the market value of a coin. You want to determine how well the coin has been preserved from its original mint condition, how well it been preserved and how much wear, tear and damage is on the coin. We're going to show you each of the designations and give you a brief explanation as to how each grade works

Mint State or Uncirculated [Unc]. This is the top grade and at this grade there isbsolutely no trace of wear, there are no blemishes and the color is great. Within this grade you can go from an MS60 to an MS 70 which is the top. Even among professionals there is sometimes a great deal of difficulty in distinguishing exactly where an uncirculated coin fits within these grades.

Almost Uncirculated [AU]. The grades within this category run AU-50, AU-55 and AU-58. Coins that fit into this category will have some small traces of wear visible on the highest points of the coin. Other than that it basically looks similar to an un-circulated coin. Again, there can be a great deal of difficulty detecting where or how much where you can see. You may want to practice by taking a new coin and rubbing it back and forth on something like a mouse pad. Do this and then check and see where you can see the wear points. You may want to tip the going back and forth to see where the light reflection does reflect like on a brand-new coin. With a bit of practice you can start to understand how to fit coins into the circulated or uncirculated categories.

Extremely Fine [XF or EF]. The grades run as XF-40 and XF-45. There is very light wear to be seen on only the highest points of the coin but there is often much of the original mint luster left on the coin. You'll be able to see the artwork, numbers etc. on the coin very easily as they are very defined in this grade.

Very Fine [VF]. The grades are listed in VF-20, VF-25, VF-30 and VF-35. On these coins yet you will find light to medium wear. While you might see some wear on minor features such is feathers or fine hair detail, all the major features on the coin are sharp in detail. This is a common grade for most collectors because you can still see the detail of the coin itself but the cost of the coin is greatly reduced when compared to the higher grades. These coins are very economical when it comes to collecting.

Fine [F]. With these coins you will see moderate to heavy wear. Although a lot of the finer details are gone the entire design should be clear and bold to your eye. these coins can be good for the beginner because they are cheaper to obtain and still give you a very good idea of the design and detail of the particular coin the question.

Very Good [VG]. Coins in this grade are well worn. The design will be clear but it will be flat and somewhat lacking in the visible details. When collecting this coin you want to get a full rim. This means that you can actually see a line around the edge of the coin where it was raised up in minting.

Good [G]. These coins are heavily worn but the overall design and legend are visible although they may be faint in some spots on the coin. The major requirement for this coin grade is to be able to read the mint mark and the date very clearly. If you have to guess on the mint mark or the date the coin will fall into the next category.

Almost Good [AG]. This coin is one that is well used and probably has been in circulation for many years. The dates, mint marks and other parts of the legend will be worn smooth but you can see them what some effort.

Fair [Fair]. With a fair graded coin, the only thing you really know is the type of coin it is. These are the types of coins you used to fill in the blank spots in your collection until you can find something of a better grade. Some of the rarer coins might be worth something in this grade but those are few and far between.

Hopefully this brief outline of the coin grading system will help you to find coins of value and keep you from being cheated out of your hard-earned cash. Be sure you have good grading skills or access to a reliable professional before you start spending your money for the higher grades. Coin collecting should be a fun a rewarding experience that can be if you spend your money wisely. You can buy gold coins or you can buy silver dollars to start your coin collection.