New collectors (and occasionally even some fairly advanced hobbyist might not easily come to terms with what is meant by Fine, VF, EF etc. Surprisingly the grade UNC (Uncirculated) can be the challenging to understand.

Adjectival grading favours descriptive terminology, which can be used in a condensed form. The term Very Fine is therefore abbreviated to VF, Uncirculated becomes UNC etc. Generally speaking, information available to collectors in regards to the definition of individual grades is somewhat scant, even contradictory. Such lack of knowledge can be particularly costly when acquiring UNCIRCULATED coins, which by themselves have more than one grade.

Novice collectors may question why there are different grades of Uncirculated. Surely a coin is either UNC or it is not. Unfortunately it is not as easy as that.

In the strictest sense of the word all coins may be regarded as UNC until the Reserve Bank issues them for circulation. Some coins will obviously be ‘luckier’ than others during the minting and pre-issue processes, where they may be subject to worn dies, resulting in a weak or poorly defined strike, or contact with each other inviting nicks or scratches (Contact or Bagmarks). It follows then that the production process itself will create characteristics, which may be at odds with each other when grading a coin. As in a Weak Strike without Bagmarks (Contact or Detracting Marks), against a perfect strike with a number of these. Throw in a course finish plus a few die cracks from a well-used die, and an (strictly speaking) Uncirculated coin may not exactly what you had in mind for your collection.

Consequently, it is obvious that uncirculated coins will have varying degrees of appeal and therefore value to collectors. For that reason a hierarchy of definitive terms such as

FDC    Fluer de Coin (French for Flower of the Die)

GEM    Gem-Uncirculated

CHU    Choice Uncirculated

UNC    Uncirculated-typical

are justified and may be used by dealers and collectors to allow for different grades of uncirculated coins.

Collectors will notice that the grade FDC or a definition for it is not always listed in the pricing sections of general catalogues. FDC refers to perfection, and it is rare to encounter a circulation type coin that is deserving of this term. Collectors can expect to pay a premium for a perfect coin, if they are ever lucky enough to be offered on.

For coins that show wear to a lesser or greater extent, the Hierarchy of Terms continues as flows.

aUNC   almost Uncirculated

EF      Extra Tine

VF      Very Fine

F        Fine

VG      Very Good

G        Good.

The Basic Story

Grading, by its very nature, will always embody a degree of subjectivity. The key to limit subjectiveness is a definition, as accurately as possible, of the terms used to grade a coin. Price then depends on the perceived current market values, which may well be a negotiating point between the buyer and the seller.”

In further elaboration ANDA details supplementary information relevant to the subject.

“Intermediate terms: The terms listed earlier are referred to as Major Grades. However, in many instances the condition of a coin may be a little better or not quite up to, the definition given for the Main Grade. Thus, for coins up to the condition UNC, intermediate grades are used to grade a coin that may be just a little better than the Main Grade, or not quite up to the given definition. Therefore the grade of a slightly better than VF coin may be expressed as gVF = good VF. A coin not quite as good as the Main Grade may be offered as aEF = almost EF or nEF = near EF or simply “about EF”. The variations of individual adjectives are personal preference a seller may have, they do have the same meaning.

Split Grades are sometimes used to indicate that a coin is of different quality on one side when compared with the other. Thus CHU/Unc will indicate that the Obverse of a coin is in Choice Uncirculated condition while the Reverse grades UNC. The value of a split grade coin is usually somewhat closer to the lower grade rather than the higher. (Please note that the Obverse or Portrait Side of a coin is graded first).

Strike refers to the quality of the detail visible on a freshly struck coin. As the die nears the end of its working life and wears out, detail may be missing on the highest points of the design. Occasionally a die would crack before being retired. Hence die cracks may result on the finished product.

Contact Marks are sometimes referred to as Detracting marks. These include Bag Marks and Edge Nicks. Scratches, hairlines and general surface marks are closely related. In FDC and UNC range of grades these must be of a virtually non-existent to relatively insignificant nature and in keeping with the definition for the given grade. If a coin would grade CHU or better when considering other aspects, but Detracting Marks are more than would be allowable for such a high grade then the coin should only be graded as UNC. Serious Detracting Marks must always be mentioned separately.

Mint Bloom or Mint Lustre results from the radial flow of metal towards the rim of a coin during the striking process. This will cause the surface of the freshly minted coin to take on a dazzling reflective appearance. It can often be seen on toned coins (where it may be referred to as underlying Lustre) but rarely on coins that are worn. A most desirable aspect of a coin with original Mint Lustre is the so called Cartwheel Effect. Tilting a coin in a circular motion around its centre will show a strongly reflective line “cart wheeling” around the face of the coin.

Mint Lustre is negatively affected by cleaning and cannot be reproduced on an un-professionally cleaned coin. Not to be confused with Brilliance, which is a term more suitable for original colour remaining on Bronze coins.

Eye Appeal is a combination of all the previously mentioned aspects. It is the most subjective feature of the art of grading. In a general sense, when overall Eye Appeal is present, it may influence the grade in a slightly positive manner. An experienced grader will consider Eye Appeal before assigning a final grade. However (and particularly so in the grades FDC and GEM) one or two superior characteristics cannot result in FDC or GEM if another major aspect is not in keeping with the overall definition for these higher grades.”

PICTURES.

We include a picture of the items we list for sale. It should be born in mind that these supplement and support our quality statement made in the terms of the ANDA Guide. We do not ask you to determine a coin grade with advice along the lines of “there is a picture - you grade the item for yourself”. No matter the extent of your experience this is often quite impracticable and for those with little experience it is impossible. 

The basic reason for this is that not only is it often impossible to show detractions such as Hairlines or fine detail. Correct colour reproduction can be enhanced or tarted up with picture software. In the end a picture is destined to be viewed by you via the computer monitor which is only capable of displaying a low resolution two dimension image.

The fine details in the highest grade coins restrict the worth of a picture. Never the less they do prove an asset in providing supplementary reassuring information. For example there are no problems in determining the overall degree of wear on the portrait, even down to making an adequate assessment of the state of the crown band or ADVANCE AUSTRALIA. You will not however be able to determine the exact state of pearls unless supplementary pictures of the fine detail are available. They can also be useful in prompting a question. So please use them as a guide to our descriptive advice and where you feel you need further information please contact us.

REFERENCE BIBLIOGRAPHY