The key to determining a coin's values is the condition or "Grade" of a coin. In order to determine a coin's grade an expert needs to examine the specimen according to a number of criteria which include:

• The imperfections on the coin
• The degree of luster or the intactness of the mirrored finish.
• The fullness of the strike.

A numerical grading scale was devised by a Dr. Sheldon which is commonly referred to as the Sheldon Scale. This scale was adopted by the American Numismatic Association and by virtually all numismatics nationwide. The scale starts with a grade of 1, which is poor, and ranges to a so-called perfect coin, a 70 (MS70). The uncirculated category starts with all grade 60 (MS-60) and ranges to (MS-70). Virtually all coins grade less than grade 65.

During the grading process the numerical grade is determined for both "Business Strikes" (coins meant to be spent) and "Proofs" (coins produced for collectors).