The grade of a coin (its state of preservation) profoundly impacts the value of a coin. Similar coins of the same date and mintmark are valued similarly when their state of preservation is the same. Likewise, prices generally increase dramatically as the grade goes up. For example, an 1880-S Morgan Silver Dollar, a common-date Silver Dollar from the San Francisco Mint, in a high state of preservation such as an MS-66 (out of a possible 70) routinely sells for up to 13 times the value of the same date Silver Dollar in a circulated grade ($260 vs. $20). And the price for scarcer or rare-date coins goes up even more significantly as the numerical grade increases.

The Appeal of Coin Grading Third-party coin grading was developed as a way for buyers and sellers to agree on the actual state of preservation of a particular coin. Each coin submitted to a third-party grading service is assigned a numerical grade by a team of experienced coin graders, who must agree by consensus on the grade of a coin. It is then individually registered and sonically-sealed in a protective plastic holder. As long as the coin remains in the holder, it will be valued at the assigned grade. The sealed holders allow numismatists (coin collectors) and dealers to buy and sell coins with confidence knowing they are graded by industry-accepted set of grading standards. Read Less