Featured What You Need To Know About: Wear

What You Need To Know About: Wear
By Jason Poe

This is the fourth in an extended series I am writing about the basics of grading. Whereas contact marks are far more important on higher grade coins (especially Uncirculated coins, which by definition have no wear), the level of detail remaining becomes much more important as a coin passes through circulation. For people just entering the hobby, terms like Uncirculated may have already lost you. Don’t worry! I’ll explain it all here in this article.

To begin, coins are divided into two broad categories: Uncirculated and Circulated (I use capitals here for emphasis). The dividing distinction is that the first have no wear, the second have wear visible. Coins displaying any wear, even if only the slightest trace of rub on the highest points of the coin, are called circulated. It also doesn’t technically matter where the wear came from – whether it’s from actually changing hands in circulation or from sitting in a velvet coin cabinet, wear is wear. This is a matter of some debate, and I will discuss it below. However, the main point is that once a coin is circulated, it can never again become uncirculated.

An uncirculated coin, however, will exhibit no wear. It may have numerous contact marks, dim luster, a weak strike, or any number of other problems, but as long as there is no wear present, it is technically uncirculated. Here is another point of debate: a coin can change hands several times in circulation, if well protected or lucky, and still show no signs of wear. Is this coin still uncirculated? It has actually circulated, but by the technical definition (remember, it shows no wear) – the coin is indeed uncirculated. The grade of a coin is independent of its history: coins can only be graded by the visible signs evident on the coin. If you cannot tell just by looking at it that the coin has circulated, then it must be called uncirculated. As you can see below, both uncirculated coins (left) and circulated coins (right) can be quite beautiful. They are very different, and must be approached and graded differently – but the same basics apply.


The left Walker is graded MS-65, the right one is EF-45

Old collections were often stored in coin cabinets. Before the days of plastic slabs, coins were displayed on trays (often covered in velvet for softness). Over a century of being placed in a display and taken out, the coin may have picked up just the slightest amount of rub on the highest points. The coin never circulated – it sat in a display for many years. Incidentally, the velvet may have encouraged very attractive toning on these coins. This case is the flipside of the coin above – it never circulated, but shows some wear. Because we can only grade based on the evidence seen on the coin, this coin must be graded as About Uncirculated (AU).

The price difference between an About Uncirculated coin and a truly Uncirculated coin can often be quite significant. However, a host of factors play into this – marks, strike, eye appeal, scarcity, etc. A truly gorgeous coin with just traces of wear on the high points may be worth far more than an ugly, dull, lifeless coin with no wear – despite the higher technical grade. Third Party Graders (TPG’s) will thus often slab coins as high as MS-63 despite having slight rub on the high points. Old-school graders despise this practice. Because a TPG is valuing a coin, not truly grading it, the incredibly nice AU may be worth a true MS-63’s price – and thus it is slabbed with a 63 grade. This is market grading, versus the technical grading I favor.

So, with all this discussion of AU versus Unc coins, how can you actually tell the difference? On some coins, it is quite easy. However, many coins can be quite deceiving. Only under certain lighting conditions or angles of viewing will the wear become evident. On most coins, wear is evident first as a discoloration of the high points. A Lincoln cent which is otherwise cherry red will show browned high points. Look for the very slightest flattening of the high points – cheekbones, thighs, arms, or breasts are the best places to look, depending on the coin’s design. Telling the difference consistently and accurately between an AU-58 coin and an Unc coin is one of the hardest aspects of grading, so as always, practice on coins graded by PCGS or NGC to learn. The coin shown below on the left is an AU coin (although undergraded as EF-45 by PCGS). Note how the highest points are a duller grey than the rest of the coin – her cheek, breasts, and certain spots in the hair. The coin below on the right is a somewhat darkly toned half dollar, but the worn high points show very well. I call this look “gem circulated cameo” – a gem circulated coin with smooth, darkly toned fields, lighter high points, and eye appeal to spare. It creates a cameo effect that I consider to be highly desirable (though some disagree).


Left: 1831 CBH graded EF-45 (should be AU-53). Right: 1832 CBH also graded EF-45

As a coin continues to circulate, the higher points continue to wear down. The luster will wear away quickly, since the fine ridges which create the diffuse light patterns are easily damaged. Soon, important details may be worn down until eventually the coin progresses to a simple round piece of metal. A circulated coin’s value is largely dependent on the amount of detail still visible. Eye appeal, surface smoothness, and a host of other factors play into it – but the primary driver is the amount of wear on the coin.

Different coins have different areas which are particularly useful in judging a coin’s grade. Certain designs also have areas which are notorious for wearing very quickly. Two that most rapidly come to mind are the buffalo’s horn on the nickel, and the date area of the Standing Liberty Quarter. The date of the SLQ disappeared very rapidly, especially on the early years before a redesign in 1925. A coin with no date is essentially ungradeable. For several series (such as the Barber and Seated Liberty series) the word Liberty appears on a headband or shield and lower grades of the coin are largely dependent on the number of letters which remain clearly visible. The ANA’s Official Grading Standards or Photograde both provide a good general outline of the level of wear allowed on each grade level, and each book also provides pictures of every series in every grade level.


1877 Seated Liberty Half Dollar, graded EF-45

If you’ve followed this series, or know me at all, then you can probably guess where I am heading next. I wanted to know – exactly how much circulation does it take for a coin to show wear? What exactly is the mechanism for this? After all, this series is attempting to show the scientific background of coin collecting! So, I took two cherry red Uncirculated Lincoln cents and commenced a little experiment. I theorize there are three principle ways circulated coins receive wear: hand to hand exchange, bouncing against fabric in a pocket or purse, and coin to coin friction in a bag or drawer. The first two were easy to simulate.

I started by taking the cent, getting my hand a little wet and dirty in some potting soil on my back patio to accelerate the process, and thumbed the coin to the beat of a song for approximately three minutes. I washed the dirt off, and what you see is below. The coin on the right is the untouched cent – notice the full luster, and how the high points are rounded and the same color as the rest of the coin. Now, compare that with the “circulated” coin on the right. The first big difference you can notice is the color – the cherry red patina has been stripped away and left the bare pink copper underneath. Next, look at the field in front of Lincoln. The bare patch which shows as a darker spot in this picture is where the luster has been quickly worn away. If the simulation were to progress, the luster would quickly recede to only the most protected places, such as in between lettering. On the bottom comparison, notice how the left coin has full, bright luster, whereas the right coin has a dull appearance. Notice also how the dirt accumulated in the lettering. The presence of dirt and grime in the cracks and crevices is a good indication of circulation. Finally, look at the high points of Lincoln’s cheekbones. Even in this short amount of time, there is noticeable flattening of the high points of the design.

The left coin (top and bottom are different views of the same coins) is Uncirculated, the right one has been rubbed for about 4 minutes

I then progressed to the next major type of wear – coin against fabric. To simulate this, I took the coin and rubbed it on my jeans for approximately three minutes. As you can see below, the high points are now significantly worn.


The same coin, after being rubbed on cloth for an additional 3 minutes

For further demonstration, look at the two barely circulated cents below. The left coin shows little wear, but the fields are noticeably dull and fingerprinted, and the high points have toned over from the oils in a person’s hand. The right coin has luster only in the protected areas – the rest has toned over. The high cheekbones and coat jacket have noticeable flattening.



So what does this tell us? After just a few hand to hand transactions, the coin may still retain most of its uncirculated characteristics. It will pick up some fingerprints, but the first signs of circulation will be in the open fields and the highest points of the design. A coin riding in someone’s pocket or purse has the potential to quickly become noticeably circulated, especially if that person is active. The third primary method of wear, coin to coin friction in drawers, would be harder to simulate, but is actually more significant. If you think about it, that makes sense – a coin is harder, and will inflict more damage. For example, a rock tumbler is a very quick way to simulate circulation and wear down a coin.

The final point I’d like to make about wear is one I’ve mentioned before in previous articles. It is sometimes difficult to tell the difference between wear, strike, and the state of the die. This is something that practice, knowledge, and experience will help you determine. For example, the Capped Bust Half dollar below was struck from worn dies, but also exhibits significant wear. The worn dies shows as weakness in the lower, protected areas. The wear shows as flattening of the higher areas. I discuss this issue far more fully in my article on Strike: What You Need To Know About: Strike


1812 CBH graded EF-40

Collecting circulated coins can be extremely rewarding. Many collectors thrill to the idea that their coin was actually used for its intended purpose – trade and commerce. It didn’t sit in some ivory tower for hundreds of years as a collector’s relic. Their coin changed hands hundreds of times – these collectors like to think about all the historic people that may have used the coin. George Washington may have once spent that 1796 dollar; Abraham Lincoln may have spent that 1860 half dollar. Next time you hold a VF quarter in your hands, think about the hundreds of people that have held that very same quarter, and how many times it must have changed hands to get to the level of wear it has.

Jason Poe

 

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I love these educational posts. Please keep them coming!

 

Wow !
Thank you physics-fan3.14 . Very good article and great information.

 

Yes, very nice Jason and thank you very much.

 

Thanks for the comments, y'all.

 

Great Stuff

Great read & ThanX!:thumb:

 

Very good post with very good and useful information.

I would add to check the rims because, in addition to open fields and high points, the rims are one of the first places wear is visible.

And you should correct the typo below (from the paragraph about your Lincoln Cent circulation experiment):

 

Awesome post and great pics as well.

 

Excellent demonstrations and article love it.

 

Jason,

That was a fantastic post and at this point, the quality was expected. You know I don't collect circulated coins but I have to say that 1812 CBH is as visually stunning as any coin I have seen lately (other than Boiler's on NGC). It is alluring in a way that is almost mesmerizing. I can't take my eyes off it.

I have never been able to understand why the TPG's graded this coin as circulated.



Do you think it is possible that this coin is the victim of chemical wear (overdipping)?

Paul

 

Excellent post! Very good read.

 

:hail:

Outstanding! Thx!

 

I had thought about doing this experiment when I wrote this article, but didn't have the time.

The next experiment I decided to investigate was prompted by some comments made by a forum member on NGC– but it carries important implications for many transactions. The discussion in question took place here: Why such a premium for Bullion? The comments were made by Scott B and James, where they said

So, I broke out my brothers incredibly precise scale (he uses it to measure gunpowder to the tenth of a grain), and took some Wheat Pennies. I used Wheat pennies because I have a number of them in a variety of grades. I grouped 12 cents into three rough grade ranges – AU/UNC, VF/EF, and G/VG. Pictures of the 12 cents used are above. These cents were all from the period 1909-1937; during this period, the composition and standard weight remained constant at 3.11 grams. As you can see from the chart below, there is a definite weight difference between grade levels. The difference from Unc to VF/EF is minor, as only the highest points are being worn off. However, the weight difference from VF to G is significant. From Unc to G, approximately 4% of the weight of the coin is lost (the difference between the highest weight and lowest weight is even more – over 5% difference).


The significance of this difference comes when talking about buying circulated coinage for bullion silver value. Many, if not most, of the coinage sold this way will be fairly low grade circulated material. If you are paying for the coins as a multiple of face value, as is common, you must realize that as much as 5% of the silver content may be gone. If buying silver by measured weight, this problem is not an issue.

 

"Look for the very slightest flattening of the high points..."

Yes... here's my take on minimal wear.

I believe the reason that coins with some rub can pass for MS-63 at TPG's today is that...

"If it isn't flat, it isn't wear." It's just difficult to prove circulation without flat wear, so a lot of rubbed examples get by at lower MS grades. I've seen plenty of MS-65's with some minor rub; so have you, I'd imagine.

All of those coins with darker fields where luster has obviously been interrupted have been rubbed. Years ago, those were all AU.

Thanks, pf3.14, for your excellent thread. : )

BTW, wear occurs from friction and certainly wears off silver, or any metallic composition, pure or alloyed, in which a coin-type object is struck. Simplified, think of wear as the result of sliding on flat surfaces, including tables, counters and bartops. ; )

 

Great post please keep it up! Thanks

 

First off, THANKS for the article. This is why I visit CT.

Just checking. You said in the text of your article (about luster on the Lincoln cents):

"The coin on the right is the untouched cent – notice the full luster, and how the high points are rounded and the same color as the rest of the coin."

But in the caption below it, you say that the untouched coin is on the left. Which one is correct?

I will be reading every one of your articles, BTW. And thanks for using Lincolns as examples, as they are about the only US coins that I take a serious interest in collecting. Cheers.

 

Oh, whoops. Sorry about that. I need to start checking the dates these things were posted!

 

never mind............