As I've stated I am very new to collecting. And I have heard the term "Grading" and I have somewhat of an idea of what it means, but what does it actually mean and any info is appreciated.
Grading is a method used to describe a coin in a way that another person will have an understanding of the coin's condition without having to see the coin. When a coin is graded a descriptive word or words (e.g., Very Good, Fine, Extremely Fine, Uncirculated) are used to describe the state of preservation or the level of wear for the coin. Oftentimes a numerical grade is used in conjunction with the descriptive words or their abbreviations (e.g., VG-8, F-15, EF-45, MS-64). Numerical grades range from 1 (Poor) to 70 (perfect condition) with the eleven grades 60 to 70 being reserved for Mint State (or Uncirculated) coins. The grade of a coin is used to determine its value. In general, the higher the grade the higher the value. (Attractive toning, a sharp strike, Proof-like fields, etc. may make a coin more valuable than one - without those characteristics - in a higher grade. Plus there is often a discontinuity in value from AU-58 to the low MS (Mint State) grades.)
A coin's grade is determined by the amount of marks/wear on a coin. The more the wear, the lower the grade. Hobo explained it perfectly
Alright thank you both, is there a site that has explanations of the different letter and numbers and all that?
Better yet, get yourself a copy of 'The Official American Numismatic Association Grading Standards for United States Coins'. The 6th Edition is current.
The most respected grading companies are PCGS, NGC and ANACS. There are other grading companies but I stay away from them because I know these 3 companies will not grade an unnaturally toned or altered coin. (ANACS will grade them but will note that it's artificially toned) PCGS and NGC require a yearly member subsription fee to send in coins and ANACS does not. I have not had a coin graded myself, but since I can drive to ANACS and drop my coins off there and I won't have to pay a fee to be a member I will use them. It's basically peace of mind because there are a lot of counterfeiters out there looking to make a quick buck.
