The value of your 5 dollar gold coin is largely dependent on the grade of the coin. The higher the grade of your gold coin, the better the value, therefore you are more likely to get a fair price for your gold coin.
Grading coins, on the other hand, demands a good amount of expertise and experience. You can personally grade your own coin but if you are not proficient enough, it would be better to let a professional dealer grade your coin for an accurate value.
Gold coins are graded using the 70 point scale devised by Dr. William Shelby. A 5 dollar gold coin with a grade of 70 means that it is a perfect coin while one with a grade of 0 means that it was once a gold coin. Using a magnifying glass, examine the raised surfaces and rims of the coin. To dispense an accurate numeric grade, you must consider the luster, surface condition, and the condition of the strike or stamping of the coin.
Mint State (Unc)
Your 5 dollar gold coin with absolutely no trace of wear can fetch a numeric grade from Mint State (MS-60) to MS-70. An MS-70 coin will have no blemishes, has great color and good strike, as well as no other signs of wear and tear.
Distinguishing the little differences (if any) among the uncirculated grades is one of the most challenging. Even coin dealers with years and years of experience can still find themselves in disagreement over the numeric grades.
Almost Uncirculated (AU)
As a beginner, you may not readily see the difference between an Unc and an AU 5 dollar gold coin. The trick is to identify the high points where the scratches are likely to be found. AU coins are given AU-50, AU-55, and AU-58 numeric grades.
You can do this by scratching a new coin (one from the bank if available) by rubbing it on a relatively smooth, soft surface and see if you can distinguish the little marks on the surface of your 5 dollar gold coin. Then hold this nearly sideways against a bright light. If you don’t perceive the same reflection off the high points the same way as it does to the rest of the surface of the coin, then you may have an AU coin in your hand.
One of the weirdest facts about coins is that a not so good-looking uncirculated coin will get a better price than a beautiful coin which had been handed over to different hands but with barely visible marks.
Extremely Fine (XF or EF)
Gold coins which achieve the Extremely Fine grades are given the XF-40 and XF-45 rating. When you have a 5 dollar gold coin with very small amount of scratch but otherwise the details on the coin are well defined. More often than not, some of the luster from the mint is left on the coin.
Very Fine (VF)
A VF 5 dollar gold coin, or any coin for that matter, may come in VF-20, VF-25, VF-30, and sometimes, VF-35. These coins usually show the results of one to three years of use so that minor details may be worn out already. Still, the coin is still beautiful and all the major details are visibly distinct. It will show sharp details of the coin at a fraction of the cost of the other higher graded gold coins.
Fine (F)
If your 5 dollar gold coin has most of its details worn out but still has a pretty much of the design intact, it can be classified as an F-12 gold coin. A Fine coin has moderate to heavy wear but the entire design in clean and bold.
Very Good (VG)
On the Sheldon scale, Very Good has a VG-8 rating. For a gold coin to be given this grade, it must have at least a full rim. A full rim refers to the line you see around the edge of the coin where it is raised up.
Good (G)
The full rim is not a requirement but you must be able to discern the date and the mint mark. A 5 dollar gold coin must be heavily worn with the details still visible but faint in some areas.
Almost Good (AG)
This is an extremely worn out coin and you may find it pretty to even make out the date.
Fair (Fair)
These are usually coins with holes or nicks; it may even be bent. Depending on the nature of the damage, you may still be able to make out the date. They are also known as filler coins since they are less expensive and you can still fill up your collection, which otherwise you may be able to afford the 5 dollar gold coin if it has a higher grade.
Basal State (Basal)
You can certainly tell that the lump of metal had once been a gold coin but other details are all but wiped out.
Understanding how to grade your 5 dollar gold coin can help you find better deals on the market, whether you have a gold coin with a good grade or not. Before you sell out, it would be advisable to ask for the opinion of at least two different coin dealers to reach a ballpark of your gold coin’s value.
Coin Collecting: How to Determine the Value of a Coin