I have decided to start looking at some older US dollar coins, such as a Morgan or a Peace dollar to add to my collection (currently only ASEs). Browsing auctions on eBay, I see a lot of graded coins that confuse me. For example, this (http://www.ebay.com/itm/1900-O-Morgan-Silver-Dollar-/271001866813?pt=Coins_US_Individual&hash=item3f18f8523d) auction for an "MS 63" Morgan - doesn't MS mean Mint State? If that's the case, what would explain the "degrading" or "damage" around the edge of the coin? That certainly doesn't look like what I'd expect to get directly from the mint. Or is this expected when you're getting an older coin? Any help is greatly appreciated....
I'm no grading expert, but MS coins can have what're known as "bag marks" - that is, scratches or dings generated from being in contact with other freshly minted coins when being dumped into bags for distribution. I've got an MS-63 Peace dollar with bag marks on it that I posted here; you can't see them too well in the picture but trust me, it's got quite a few of them. The rim damage on that coin is likely the same thing. Even if you look on this site (a great site if you're trying to learn what different grades look like!), you'll see MS coins with similar marks. Hope that's helpful!
It doesn't really have much to do with the coin being older. You can find the exact same thing on coins you get fresh from the the mint today. What I would suggest is that you get this book - http://www.amazon.com/Official-American-Numismatic-Association-Standards/dp/0794819931 Read it, study it. It will help you immensely in understanding what Mint State means. As well as help you learn how to grade.
Mint State can actually have a ton of hits and marks. The only requirement for MS is no wear. Here is an AU58 Morgan: And an MS60: And an MS65: An MS67: When you get to Mint State, the difference is the marks and hits. You can clearly see that the MS60 is full of marks and hits, while the MS65 has very few, and the MS67 has virtually none. MS63 splits the difference for marks between a 60 and a 65.
Rassi - the photograde site is OK for giving you an idea of what a coin might look like in a given grade. But it can be very deceiving because you can have a thousand different coins all graded exactly the same and every one of them will look entirely different.
Thank you GDJMSP - I will keep that in mind. It just helps me get an idea of what kinds of things to look for.
To learn about coin grading you need to learn about marks, and wear. The marks on the rim of the coin from the link you provided are not in a key focal area for that series and are acceptable for a MS grade. The amount of the marks, as well as how deep into the design or the fields around it will determine the fractional, or numeric grade in the MS range. Marks, like on the rim of this one, are also evaluated for location on the coin as well is if they are distracting, and diminish the eye appeal. Had there been any wear, from circulation, the coin would not be a MS, and depending on the amount of wear it would could grade AU, or About Uncirculated, or less.
Also you need to keep in mind when looking at TPG coins like NGC and PCGS that, as Doug mentioned, will look different. They will all be technically the same grade, but some will certainly be nicer than others. In the case of the coin you posted it sure seem to have a lot of rim chatter, or at least looked like it - I think a better 63 could be found. And if you get a chance - you really need to see them in hand, the more you see in hand the better off you will be.
