Quick answer
Third-party grading services like PCGS and NGC assign each coin a number on this scale, seal it in a tamper-evident plastic holder called a slab, and tie the grade to a publicly searchable database. For rare coins and pre-1933 gold, grade is the dominant driver of value. For common modern bullion coins such as American Silver Eagles, the grading premium you pay at purchase often does not return at resale. This guide explains what every number means and when paying for a grade is worth it.
Walk into any coin show and you will see coins in rectangular plastic cases stamped with a number and a certification code. That number comes from the Sheldon 70-point scale, the universal language of coin condition used by every major grading service, auction house, and serious collector in the United States. Understanding what those numbers describe physically, and what they mean for your wallet, is the purpose of this guide.
What Is the Sheldon 70-Point Scale?
Numismatist Dr. William Herbert Sheldon introduced the 70-point grading scale in 1948 in his book on early American large cents. He originally designed the numbers as a pricing shorthand: a coin graded 70 was supposed to be worth 70 times as much as a coin graded 1. That proportional math broke down long ago for most coin series, but the scale stuck and became the universal standard for grading all U.S. coins.
Today, the Sheldon scale maps every number from 1 to 70 to a specific combination of surface preservation, strike sharpness, and eye appeal. The grades are not a continuous percentage; they use a discrete set of established numbers that have formal definitions published by both grading services and the American Numismatic Association. When a grader assigns a coin MS-65, they are making a technical assertion: this coin meets a defined set of criteria at that grade level, not one point higher or lower.
Grading requires judgment, and two expert graders can disagree by one point on any given coin. That is precisely why the third-party system exists: independent evaluation by trained professionals who have no financial stake in the outcome.
Two Worlds on One Scale: Circulated vs. Mint State
The first and most important split on the Sheldon scale is between circulated grades and Mint State grades. That boundary sits at grade 60.
Circulated Grades (P-1 Through AU-58): What They Mean for Older Coins
A circulated coin has been used as money and shows wear on the raised, high-contact areas of the design: the tops of lettering, hair curls, feather tips, and eagle talons. The amount of wear present determines where the coin falls in the circulated range.
| Grade(s) | Label | What the Surface Looks Like |
|---|---|---|
| P-1 | Poor | Barely identifiable as a coin; design almost entirely worn away |
| FR-2 | Fair | Major design elements faintly visible; date may just be readable |
| AG-3 | About Good | Heavily worn; outline present, design details merging into the fields |
| G-4, G-6 | Good | Major design clear; rims worn flat or nearly gone |
| VG-8, VG-10 | Very Good | Design clear; some interior detail remains on highest points |
| F-12, F-15 | Fine | Moderate even wear; all major elements visible with partial clarity |
| VF-20 through VF-35 | Very Fine | Light to moderate wear; most design detail present and clear |
| EF-40, EF-45 | Extremely Fine | Light wear on highest points only; sharp detail nearly throughout |
| AU-50 through AU-58 | About Uncirculated | Traces of wear on the very highest design points; original luster partially intact |
For pre-1933 U.S. gold coins and classic silver series (Morgan dollars, Peace dollars, Walking Liberty half dollars), circulated grades carry enormous price significance because relatively few examples survived in Mint State. A rare date in VF-35 may be worth many times a common date in MS-63. Grade dominates value in those series. See Pre-1933 Gold: Collecting vs. Bullion for a full discussion of how condition affects value across that category.
Mint State Grades (MS-60 Through MS-70): The Zone Bullion Investors Need to Understand
A Mint State coin has never been used as circulated currency. It carries no wear from handling in commerce. That does not mean it is perfect. Modern coin production involves high-speed stamping presses, bulk bag storage, mechanical counting, and shipping, all of which leave contact marks on the coin’s surfaces. These marks, combined with any weakness in the strike and the overall quality of the coin’s luster, determine where within MS-60 to MS-70 the coin is assigned.
| Grade | Label | Physical Description |
|---|---|---|
| MS-60 | Mint State Basal | No wear, but heavy bag marks and contact abrasions all over the surfaces; weak luster and poor eye appeal |
| MS-61, MS-62 | Mint State | Fewer marks than MS-60; luster present but dull or uneven in areas |
| MS-63 | Select Uncirculated | Moderate distracting contact marks in the fields; luster present but not full or consistent |
| MS-64 | Choice Uncirculated | Some marks present but coin is generally attractive; full luster on most areas |
| MS-65 | Gem Uncirculated | Strong, even luster; minor contact marks limited to secondary design areas (fields or cheek, not portrait or eagle) |
| MS-66 | Gem Uncirculated Plus | Above-average strike and luster; only minimal light marks visible |
| MS-67 | Superb Gem | Exceptional strike and surfaces; marks visible only under low magnification and only minor ones |
| MS-68 | Superb Gem Plus | Nearly flawless to the naked eye; trace imperfections appear only under 5x magnification |
| MS-69 | Near Perfect | Minuscule imperfection (single contact point, faint hairline) detectable only under magnification in a grader’s hands |
| MS-70 | Perfect Mint State | No post-production imperfections visible at 5x magnification; full, sharp strike; mirror-like or fully frosted luster as appropriate for the coin type |
The MS-69 vs. MS-70 Price Gap: Why One Point Can Be Expensive
The jump from MS-69 to MS-70 is the single most financially consequential one-point move on the entire Sheldon scale for modern bullion coins, and it deserves careful attention before you spend money chasing it.
Both PCGS and NGC publish publicly accessible online price guides reflecting recent auction realizations and dealer activity. For many American Silver Eagle dates, the spread between MS-69 and MS-70 examples has historically ranged from modest on common recent dates to several hundred dollars or more on lower-mintage issues and first-year-of-design coins. The gap shifts with market conditions, collector demand, and how many MS-70 examples exist for a given date. Before paying any MS-70 premium, check the PCGS Price Guide at pcgs.com/prices or the NGC Price Guide at ngccoin.com/price-guide for the specific date, mintmark, and coin type you are evaluating.
The physical difference between MS-69 and MS-70 is often invisible without a loupe. PCGS and NGC both use 5x magnification as the standard for determining a perfect MS-70 designation. At that level, a single minute contact point from a coin bag, a faint hairline introduced during the minting process, or a barely perceptible weakness in the edge can drop a coin from MS-70 to MS-69. Two coins that look identical to the naked eye can grade differently based on what a loupe reveals.
Important context: For common modern bullion issues with millions struck, the MS-70 premium can shrink or disappear at resale. Many coin dealers who handle raw bullion at close to spot price will not pay MS-70 premiums for slabbed common dates. The premium you pay at purchase depends on finding a collector-focused buyer willing to pay it when you sell, which is not guaranteed in all market conditions.
The Major Third-Party Grading Services
Third-party grading removes the conflict of interest inherent in dealers grading their own inventory. Two organizations dominate the U.S. market, and both are widely recognized by auction houses, major dealers, and institutional buyers.
PCGS (Professional Coin Grading Service)
PCGS was founded in 1986 and is headquartered in Santa Ana, California. It was among the earliest services to introduce standardized, commercial third-party grading with tamper-evident holders. PCGS maintains a publicly accessible certification verification tool at pcgs.com/cert where you can confirm any coin’s certification number, grade, and submission details. PCGS also publishes population data through the PCGS Population Report, available at pcgs.com/pop, showing how many examples of each coin and date have been graded at each grade level. This data is free to search and is one of the most useful research tools available to buyers and sellers of graded coins.
NGC (Numismatic Guaranty Company)
NGC was founded in 1987 and is based in Parsippany, New Jersey. Its grading process is structurally similar to PCGS: coins are submitted, independently evaluated by multiple trained graders, and sealed in a distinctive holder with the grade, certification number, coin description, and any special designations printed on the label. NGC’s certification lookup is available at ngccoin.com/certlookup. NGC publishes its own census data, the NGC Census, at ngccoin.com/census, comparable to the PCGS Population Report and equally useful for population research.
Recognizing Other Services
Several other grading services operate in the United States. Major auction houses and most established coin dealers recognize PCGS and NGC grades with the highest level of market confidence because of their track records, published grading standards, and population databases. If you encounter a coin graded by a service you do not recognize, research that service before paying a premium based on the grade alone. Grading quality and market acceptance vary considerably among smaller or newer operations.
What Is a Slab? Certification, Holders, and Verification
The term “slab” refers to the tamper-evident plastic holder that encases a graded coin. The holder is sonically welded shut so that opening it destroys the case, making tampering immediately obvious. Once a coin is slabbed, anyone who cracks it out of the holder voids the certification; the coin must be resubmitted and regraded if it is to carry a new grade designation.
Each slab label contains:
- The coin’s identification (denomination, year, mintmark, country of issue, variety when applicable)
- The grade assigned (a number and its label, such as MS 69)
- A unique certification number tied to the grading service’s database
- Any special designations (see below)
Verification takes under a minute. Go to the grading service’s website, enter the certification number, and confirm that the coin description and grade on the screen match the label on the slab. If a slab cannot be verified online, do not pay a premium based on the grade. Counterfeit slabs are real, particularly on higher-value coins. Authentic PCGS and NGC holders also incorporate label security features described on each service’s website.
Special Designations: What “First Strike” and “Early Releases” Actually Mean
When you see labels reading “First Strike” (PCGS) or “Early Releases” (NGC), those designations describe when the coin was submitted to the grading service, not any quality attribute above the numeric grade.
- First Strike (PCGS): The coin was submitted to PCGS within 30 days of the official U.S. Mint release date for that issue.
- Early Releases (NGC): The coin was submitted to NGC within 30 days of the release date.
- First Day of Issue (both services): The coin was verified as released on the first calendar day of official distribution from the Mint.
A First Strike MS-70 and a plain MS-70 of the same date and mintmark are, by definition, equally perfect coins. The numeric grade describes the coin’s condition. The First Strike or Early Releases designation describes a submission window. Whether the label commands a market premium depends entirely on collector demand for that specific coin, which varies by date, mintmark, and market cycle. On common bullion coins with millions of eligible submissions, these designations are largely marketing labels. On genuinely scarce issues where the First Strike population is substantially smaller than the overall MS-70 population, the premium can have some rational basis.
Population Reports: Why Scarcity Within a Grade Drives Numismatic Value
Both PCGS and NGC publish census data showing how many examples of each coin, by date and mintmark, have been graded at each grade level. This data is publicly accessible without a subscription and is one of the most practically useful research tools for evaluating a graded coin’s price premium.
The logic is straightforward. If a specific date of American Gold Eagle in MS-70 shows only a few hundred examples in the PCGS Population Report out of millions originally minted, a collector who wants that combination faces genuine documented scarcity. That scarcity can support a meaningful premium because buyers are competing for a limited pool of certified examples.
For recent-year common bullion coins, the picture is often different. Modern production controls at the U.S. Mint result in a high percentage of American Silver Eagles, American Gold Eagles, and similar coins grading MS-69 or higher when submitted. Both PCGS and NGC have processed enormous quantities of these coins over the decades, and the MS-70 population for common dates of popular series can reach tens of thousands of certified examples. When the supply of MS-70 coins is that large, the rarity argument that justifies a large premium weakens considerably.
The practical takeaway: check the population report for the specific date and mintmark before paying an MS-70 premium. If the service has already certified tens of thousands of examples at that grade, the coin is not rare within its grade, and the premium reflects supply-and-demand dynamics in a market that may shift.
When Grading Adds Cost Instead of Value: The Bullion Reality Check
This section covers the economics that a dealer selling premium-priced slabbed coins may not volunteer. For common, high-mintage modern bullion issues, the financial case for buying a graded coin rather than raw bullion often does not hold up.
Consider the cost chain:
- The coin’s melt value (metal content at spot price) is the absolute floor. Grade does not change what the metal is worth as metal.
- Submitting a coin to PCGS or NGC costs money upfront, plus return shipping and handling time measured in weeks.
- If the coin grades MS-69 rather than MS-70, the small premium over raw bullion may not cover the grading fee.
- If it grades MS-70, selling at the MS-70 premium requires finding a buyer who is willing to pay it. Coin dealers purchasing raw bullion at close to spot often will not pay numismatic premiums for common slabbed dates.
- In a declining market, premium compression is common. Buyers who paid large MS-70 premiums on common dates have historically experienced difficulty recovering those premiums at sale.
Grading makes stronger economic sense in situations where a genuine collector market exists independent of the metal price. Pre-1933 U.S. gold coins, key-date silver dollars with low surviving populations, first-year-of-design issues with documented low MS-70 populations, and coins with specific historical significance all have collector markets where the grade number is the primary value driver. In those cases, the cost of certification is small relative to the difference in value between grade levels.
The companion guide Should You Grade Your Bullion Coins? walks through the decision framework in detail, including the math on grading fees vs. expected premium recovery. And if you are considering cleaning a coin before submission to improve its appearance, read Never Clean Your Coins: Why It Destroys Grade and Value first. Cleaning a coin, even gently, causes irreversible surface damage that guarantees a lower grade or an outright details designation that carries no premium at all.
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Coin Grading Questions from Investors
What is the physical difference between MS-69 and MS-70?
Both grades represent Mint State coins with no wear from circulation. An MS-70 has no post-production imperfections visible under 5x magnification, which is the standard used by PCGS and NGC. An MS-69 has at least one detectable imperfection at that magnification: a faint contact point, a minor hairline, or a slight weakness in the coin’s edge. The difference is often invisible to the naked eye and requires a loupe or grader’s magnifier to identify. Financially, the price gap between the two grades varies widely by coin, date, mintmark, and current market demand.
Are PCGS and NGC grades equivalent to each other?
Both services use the Sheldon 70-point scale and the same published grading standards, but they are independent organizations with separate teams of graders. A coin graded MS-69 by PCGS would not automatically receive the same grade from NGC if submitted after being cracked out of the PCGS holder; outcomes can vary by one point in either direction. In practice, the major auction houses and most established dealers treat PCGS and NGC grades as roughly equivalent for the same series and date. Some collector communities develop preferences for one service over the other on specific coin types, which can create minor market differentials.
Does “First Strike” mean the coin is higher quality than MS-70 without that label?
No. First Strike (PCGS) and Early Releases (NGC) describe when the coin was submitted to the grading service, not any quality characteristic above the numeric grade. Both designations require submission within 30 days of the U.S. Mint’s official release date for that coin. A plain MS-70 and a First Strike MS-70 of the same date and mintmark are both perfect at the MS-70 standard. Whether the First Strike label adds market value depends on collector demand for that specific coin, not on any physical difference in the coin itself.
How do I verify that a coin slab is genuine and has not been tampered with?
Enter the certification number printed on the slab label into the grading service’s online verification tool: PCGS at pcgs.com/cert or NGC at ngccoin.com/certlookup. A genuine slab will return the coin’s description, grade, and in some cases images. If the lookup returns no result, or if the details on screen do not match the physical label, treat the slab as suspect. Both PCGS and NGC also incorporate physical security features in their labels that are described in detail on their respective websites. Counterfeit slabs do exist, primarily on high-value coins, so verification before purchase is a standard precaution.
Is it financially worthwhile to submit a common American Silver Eagle for grading?
For most common American Silver Eagle dates produced after the early 1990s, the economics are unfavorable. The grading fee and return shipping cost money upfront. If the coin grades MS-69, the small premium over raw bullion may not cover that cost. If it grades MS-70, recovering the full MS-70 premium at resale requires finding a collector buyer willing to pay it, which is not guaranteed in a commodity-driven market. Grading makes stronger economic sense for key-date issues, low-mintage coins, or specific dates where population data shows genuine scarcity at MS-70.
What is a population report and why does it matter?
A population report (PCGS calls it the Population Report; NGC calls it the Census) is a publicly accessible database showing how many coins of each specific date, mintmark, and type have been graded at each grade level by that service. It tells you, for example, how many 1986 American Silver Eagles have been certified MS-69 vs. MS-70 by PCGS. When a coin’s MS-70 population is small relative to the total mintage, there is a documented scarcity that can rationally support a price premium. When tens of thousands of MS-70s exist for a common date, the scarcity argument weakens considerably.
If I crack a coin out of its slab, does it lose its grade?
Yes. Opening or damaging a slab voids the certification. Once cracked out, the coin has no certified grade regardless of what the original label said. If you want the coin regraded, you must submit it to the grading service again, pay the submission fee, and accept whatever grade the evaluators assign. That grade may be the same, lower, or in rare cases higher than the original, depending on the current graders’ judgment. There is no guarantee that a coin that graded MS-70 in one submission will grade MS-70 again after being cracked out and resubmitted.
Sources
- PCGS (Professional Coin Grading Service). “PCGS Grading Standards.” pcgs.com/grades. Accessed July 2026.
- PCGS. “PCGS Population Report.” pcgs.com/pop. Accessed July 2026.
- PCGS. “PCGS Price Guide.” pcgs.com/prices. Accessed July 2026.
- PCGS. “Coin Certification Lookup.” pcgs.com/cert. Accessed July 2026.
- NGC (Numismatic Guaranty Company). “NGC Coin Grading.” ngccoin.com/grading. Accessed July 2026.
- NGC. “NGC Census.” ngccoin.com/census. Accessed July 2026.
- NGC. “NGC Price Guide.” ngccoin.com/price-guide. Accessed July 2026.
- NGC. “NGC Certification Lookup.” ngccoin.com/certlookup. Accessed July 2026.
- American Numismatic Association. “Official ANA Grading Standards for United States Coins.” 7th edition, ANA.