Did you know that there is a grading scale that was developed for coins, so that collectors can agree on how much a coin may be worth? The scale goes from 0 to 70, with 70 being absolutely perfect. Of course, despite the numerical grading there is still much debate about a coins actual grade and final value, which is really in the eye of the beholder.

Coin dealers, for example, may grade a coin higher on the scale so that they can ask a higher selling price for it. Often, when you try to sell the same coin, the grade and the value tend to be lower. Coin dealers after all are in business to make a profit. If you don't know how to grade coins and are not comfortable with the grading scale, you should take a friend that knows how to grade or expert with you when you plan to buy coins on the open market.

Now let's look at the different rating scales and what they mean. As was mentioned earlier, 70 is absolute perfection. Coins that are in Mint State (MS) will grade out between MS 60 and MS 70. These coins are fresh from the mint, never circulated and usually protected in some manner.

The next level down is called Almost Uncirculated (AU). For a novice, it is very difficult to tell the difference from some AU Coins and an MS 60 coin. In fact, some AU coins may actually look better than MS coins to the untrained eye. Knowing where the high points are will make it easier for you to grade the AU coins. The AU scale is made up of AU 50, AU 53, AU 55 and AU 58.

There are several other grading levels starting with Extra Fine (EF). These coins have wear that is fairly easily detectable. However, one thing to keep in mind is that for each denomination or coin type, the criteria may vary depending on the design. These grade out as EF 40 and EF 45. Very Fine (VF) coins on the other hand have sharp major features and very light to medium wear. These coins while still looking very nice tend be less expense than coins that grade higher. In fact, you can find many VF coins in rolls of coins from your bank. These grades are VF 20, VF 25, VF 20 and VF 35. The last grade in the fine category is Fine (F). The key on this grade is that while fairly worn, you can still see a lot of the detail of the design. This grade is typically F 12 and F 15.

And now for the good category ratings. First, we start with Very Good (VG). Characteristics are a full rim and a lack of detail on the entire design. Typical grade for these is VG 8 and VG 10. The Good (G) grade does not require a full rim to be visible and usually the coin is very worn so that the design is not visible in all areas. Finally, About Good (AG) coins are fairly worn, but you can still read most letters. These are usually graded as AG 3.

The final category of grading called Fair (FR) is what collectors typically use as filler coins in their collections for the rarer, more expensive coins. These worn coins can still cost collectors up to as much as $50. These coins are so worn that sometimes the dates are not clearly visible.

So when you are ready, go down to the bank and get yourself a roll of pennies, nickels and quarters and practice grading these coins. Take the coins and compare them with the pictures available in books and on websites and grade them according to the descriptive characteristics listed for each denomination. Soon you will be able to tell the difference at least between the major categories. The finer grading will come with time and experience. Keep in mind that even experts will disagree on the final grading of a coin.