Information on Proof Coins and Gold Grading Certificates

Investing in precious metals goes far beyond their ornamental value. They are a convenient way of backing your financial assets and your hedge against inflation. In the central banks of many countries, gold bullion bars are used to back their monetary assets. But just as the saying “all that glitters is not gold” goes, ensuring the quality of these metals is important when you make the purchase.

Grading is a process that evaluates the quality of precious metals using set criteria. The overall grade, purity, demand and rarity determine the quality of these metals. The grading standard for these precious metals was set in the 1950s. They are rated on a number of levels or grades that define their quality.  It is essential that you know these grades so that you choose the right one. Let us now look into the process of grading for gold coins and proof coins.

Grading for gold coins

MS or Mint State refers to gold coins that show no sign of cosmetic wear. The MS coins are rated on a scale of 60 to 70, with 70 being the highest. In certain regions, mint condition coins are also referred to as AU or Almost Un-circulated. EF or Extremely Fine gold coins are those that show minimal amount of wear. According to the amount of light wear on the surface, the coins may be rated on a scale of 40 to 50. The abbreviation may also read XF in some cases.

The major details in VF or Very Fine graded coins are in perfect condition while the lighter details might show some amount of wear. They are measured on a 20-30 scale. Fine grade coins are those that have moderate to heavy wear but the major details still remain discernible.

VG or Very Good refers to coins that have a full rim even though the design is worn. G or Good grade coins do not require a full rim; only a discernible date and mint mark. AG or Almost Good and F or Fine grade coins are the poorest in the ranking, with barely readable details.

Grading for proof coins

Proof coins are graded on the same scale as Mint State coins, with the best quality ones graded on a scale of 60 to 70. Coins are generally rated as PF-70 or PF-69 and coins of lesser quality start from PF-59 onwards. Coins graded PF-50 to PF-60 are usually those that are struck with proof finish but were later subject to cosmetic wear through friction and circulation. The abbreviation “PF” stands for Proof, although PR is also used occasionally.

It is often difficult to distinguish between a genuine proof coin and a proof-like, business strike coin that is struck from a proof. The determining of a proof coin depends on a number of factors including Proof surface, strike, die variety, edges and lint marks.

These are the set standards by which gold and proof coins are graded these days, though opinions do vary at times. It is highly recommended that you approach the services of a professional grading company to ascertain the quality of your precious metals. There are a number of internationally reputed grading companies offering such services. An awareness of the various grades will give you critical information about the quality of a particular gold or proof coin.