[The following excerpt is published courtesy of DLRC Press and its author, Gloria Peters & Cynthia Mohon. This information was originally published in 1995 in The Complete Guide to Shield and Liberty Head Nickels
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In general there is a distinction between grading circulated coins and mint state. Circulated coins are graded by the amount of wear that is evident. Cleaning, contact marks, and strike, while affecting the value, do not strictly speaking, affect the grade. We can be very specific for the circulated grades but for mint state and proof grades we can only provide guidelines.
There will always be differences of opinion in grading; however, if an uncirculated coin’s problems prevent it from being certified by either PCGS or NGC that coin will probably be valued at less than the equivalent certified grade in the marketplace. PCGS and NGC are the two major third party grading services and they have set the standards for the industry. Whether you prefer third party professionally graded encapsulated or ‘raw’ coins for your collection, the grading considerations should be the same.
Strike is a problem for Shield and Liberty nickels, but most Libertys are not as severely deficient as are the Shields. Both series in business strikes are graded by a ‘well struck’ guideline, not ‘fully struck’, in grades through MS-65. Other inherent manufacturing deficiencies are also given some latitude in grading and can be found on the following page in Factors That Affect Quality.
Focal points for Shield nickels: Center of coin, obverse/reverse. Exposed fields. All grades, circulated and uncirculated should be viewed in relationship to the focal areas.
Focal points for Liberty nickels: cheek, front of face, back of head obverse; center of coin, obverse/ reverse; exposed fields.
General Grading Guidelines For Uncirculated Nickels
The guidelines which follow are major factors in grading. These conclusions are based on our examination of a large number of certified coins as authorized dealers for both services, long term collectors and dealers, as well as interviews and correspondence with Rick Montgomery, Authenticator and Grader at Professional Coin Grading Service, and Ken Krah, Grader with Numismatic Guaranty Corporation of America. The guidelines normally apply to uncirculated issues in both series, but several of the negative and no-grade factors may assist the collector in establishing value for circulated coins.
GRADING GUIDELINES:
1. Original surfaces are extremely important and should look as natural as possible. Check factors which result in a nograde.
2. Marks (location, number and depth), luster and spotting are weighted similarly in grading the two series. Check focal areas in reviewing mark locations.
3. Strike is important, however a Shield or Liberty nickel does not have to be fully struck to be a MS-65. Well struck is the criterion. For MS-66 and higher the strike factor is more stringent even for dates that have known strike problems. Some additional allowance may be made for certain dates which are always deficient, (1866, 1912-S for example).
4. Eye appeal can be a plus factor when outstanding and is the most subjective element in grading.
FACTORS WHICH MAY NEGATIVELY AFFECT THE GRADE:
1. ‘Strike through’ and die clashes but only if large and detracting.
2. Extreme die breaks.
3. Excessive spotting or stains.
4. Dipping which affects the coin’s originality.
5. Streaking caused by improper washing after dipping. This factor can result in no-grade. It is usually more pronounced on proofs.
6. Surface dullness. Often caused by less than desirable storage such as holders/papers containing sulphur.
7. Big hits, chops. Location on focal points are the least desirable.
8. Porous rims, usually seen on early date Liberty nickels. If severe can result in no-grade.
9. Although rare, an extremely poor strike can also be a negative factor.
SOME FACTORS WHICH RESULT IN A NO-GRADE:
In our experience, coins which have had their surfaces altered either by harsh cleaning; improper or excessive dipping; artificial toning; whizzing; damaged or defaced; altered in some form to hide defects or enhance the coin’s natural surfaces or strike will not be graded. Severe laminations which rise above the surface of the coin will also be rejected for encapsulation due to possible damage caused by holdering.
Factors that Affect the Quality of Shield & Liberty Head Nickels
Many factors had an impact on the quality of nickels minted from 1866-1912. The manufacturing process was more primitive and a few significant practices employed at the mint affected both circulated and uncirculated coins. Allowances for several typical problems are made in grading for both series. An understanding of these elements which effect quality may assist current and future collectors to fully appreciate the uniqueness of the Shield and Liberty nickel series.
I. MATERIALS
A. Copper-Nickel Alloy For Coins
1. Sources of nickel were varied and resulted in differences in planchet quality.
2. Uncurrent and damaged coinage was melted and recoined. The impure alloy that resulted might also have contaminated later batches of coins.
3. The hardness of the alloy and its resistance to “flow” shortened die life.
4. Problems with blending the alloy and impurities produced laminations on the planchets. This is still a problem with all nickel coinage, including Buffalo and Jefferson nickels.
5. The copper in the alloy is highly reactive to acids and other influences.
B. Annealing Early mint practice was to evaluate annealing temperatures by visual markers, i.e. “heat to cherry red” which is subjective. Only a narrow range of temperatures worked well so planchets were often improperly annealed.
C. Hardened Steel For Dies The materials used in hardened steel for dies and/or improperly annealed dies often caused breakage of the working dies during production and resulted in die cracks and cuds.
D. Planchet Size Uneven thickness of planchets.
II. DESIGN
A. Shared Metal
1. Metal flows from the center of the planchet to the outside edge and there is a direct relationship between “sharing” of metal available between obverse and reverse and strike weakness of certain design elements. The design was clearly a “flow” problem on the Shield nickel. The metal was shared at the point (obverse and reverse) that the horizontal bars of the shield oppose the bottom curve and ball of the numeral 5. This sharing of metal tended to favor the broad surface of the 5 rather than the fine striations of the shield so the lines at the top of the shield often visibly display a weakness in that area. On the Liberty design the tiara and forelock of Liberty’s hair counterpoint the left ear of corn, which is commonly the most weakly struck part of the reverse. Shared metal problems are most notable on business strikes.
III. STRIKE FACTORS & PRODUCTION MECHANICS
A. Pressure applied to dies and die quality
1. From 1866 to 1902 there were continuing serious problems with the amount of pressure required to successfully stamp the hard nickel alloy resulting in poorly struck coins and an incredible destruction rate of the dies. The new mint in Philadelphia installed more powerful hydraulic presses. Nickels still didn’t strike up fully in business strikes even with 60 tons of pressure applied. The San Francisco Mint as late as 1912 still couldn’t strike up the nickel as attested by the overall soft strike in its 1912-S issue.
2. The depth and strength of the design transfer to the working die can also impact how much detail and how evenly the coin’s design is impressed into the working die. Many dies were required for the early Shield production and the demand for dies may have caused hasty preparation of the working dies.
3. Adjustment of space between dies coupled with the uneven thickness of the planchet resulted in uneven striking quality. 4. Parallelism of dies and parallelism of working hubs to working dies also produced unevenness in detail.
IV. DIE PREPARATION A. Contaminants/Carbon Flaking Dies were first annealed by heating. They were then packed in carbon for the gradual cooling. Sometimes the carbon was not completely washed off prior to the dies being used. Also some of the die formed a thin brittle layer of carbon on their surfaces during the heating process. This layer would sometimes shatter during coining, leaving small pieces of carbon struck into the coins. If the carbon flaked off the dies before striking, it would leave a depression in the die and a subsequent raised area on the coins it produced. The same happened with collars. (Correspondence with Del Romines)
B. Contaminants/Environmental The black specks often seen on nickel (and cent) coinage, do not appear to be true ‘carbon spots’ except in fairly rare circumstances. An exception might be small raised cankers coupled with halo toning around the dark speck. However, even a canker may be a result of a highly interactive foreign element, other than carbon, on the surface of the coin. Attempts are made at times to remove these cankers, and the attempts are not always successful.
The principal cause of the black specks seen on uncirculated nickel and copper coins is probably acidic in nature, possibly caused by saliva (spittle spots) hitting a coin when talking over it, microscopic food particles and moisture. Most copper nickel coins seem to lose the specks after passing into circulated condition.
V. PLANCHET CONTAMINATION
Prior to 1911 annealed blanks/planchets were immersed in an acid bath prior to striking. This method “always left a residue on the blanks and had a bad effect on both collars and dies.” (1896 Annual Report, Director of the Mint)
VI. DRYING PROCESS
After the annealed blanks received their acid bath they were plunged into “expensive hardwood sawdust” and tumbled until dried. This practice was to be discontinued in 1911 with the installation of two Tolhurst centrifugal drying machines, but it is probable the sawdust drying practice continued for minor coinage until about 1913. The Annual Report 1911 Director of the Mint stated “discontinuing the drying of planchets/blanks in the sawdust will eliminate the clinging of small particles of sawdust to the blanks and then to the dies resulting in defective coinage.” Under a scope the bottom of the indentation will show rough, granular surfaces with luster… unlike a corrosive spot removed from the surface of a coin. Other ‘strike through’ defects caused by slag, lint marks, material, wood and other contaminants usually have a different appearance.
VII. CLEANED AND REISSUED COINS
Over seven million Shield and Liberty nickels were cleaned and reissued. This practice of cleaning nickels in a mild sulphuric acid solution and drying in sawdust may have contributed to many surviving circulated coins being slightly rough (lightly pitted) and dull in appearance.
VIII. TONING
Shield and Liberty nickels were subject to: 1) acidic baths in the planchet stage; 2) foreign elements during striking (i.e. dust, oil, goop, sindering, fabrics, threads and manufacturing components); and 3) environmental agents (hand oil, drops of spittle, gasses, and air) during manufacture. The pressure and heat of the minting process leaves a protective layer (luster) on the coin. Natural toning based on environmental factors may be quite beautiful. Toning by itself is normal in the real world and comparatively unimportant, other than perhaps a collector’s preference in eye appeal, if the surface (luster) is left in its original state. Surface alteration in the form of dipping, acidic or alkaline to achieve a desired color (white, for example); lighten toning, or to open the pores for chemically induced colors will remove the original protection and perhaps either downgrade a coin, or worse, relegate it to a no-grade status. The degree of luster removed depends upon the number of times dipped and the strength of the solution, but all dipping of this type will affect the coin’s original surfaces to some degree – even if microscopically. Frequently the toning will return in time. Nickel alloy coins in particular may be damaged by dipping.
In uncirculated Shield and Liberty nickels natural toning typically varies slightly for a proof vs. business strike. For proofs the tones tend to be brilliant; white-greyish nickel color with perhaps a trace of iridescent patina; light champagne; light lilac; shades of rosy orange with /hi-lights of soft lilac-blue; golden iridescence; light natural golds; and iridescent pale blue hues. Some proofs have frosty (cameo) devices. Business strikes vary from light to deeper golden tones; light iridescent colors; brilliant white-greyish nickel color with perhaps a trace of iridescent patina; rosy, russet hues, and sometimes a light bluish tone mixed with the above.
IX. STORAGE
To maintain a quality collection:
1) Avoid destroying the protective luster on a coin by dipping in trying to achieve a certain look or color;2) Avoid talking over unprotected coins (saliva is acidic); touching the coin’s surfaces with fingers or hand (skin is also acidic); and 3) Store the coin in a non-sulfide, inert container. X. COIN SURFACES Several dates in the Shield and Liberty Head nickel series are noted for granular surfaces. The surfaces on a coin may be caused either by the dies or planchets. Below is an example of a rough, bumpy, granular surface.
DIE WEAR
The two photos below are the same coin, a 1868 business strike, and are examples of die erosion. These are not varieties, but rather illustrate die wear to the point where the metal actually flows out of the confines of the die’s devices during striking.
1893 With granular surface
1868 (Rev. of 1867)
Die erosion is most noticeable to the left of the large 5’s ball. (Courtesy of Norm Talbert)
1868 (Rev. of 1867)
Again die erosion is present as exhibited by the metal trails (spikes) below the letters I, T, E. the spikes eroding outward are raised. (Courtesy of Norm Talbert)
Grading Circulated Shield Nickels
The primary criterion for grading circulated Shield nickels is wear. Cleaning, marks, rim dings, severe laminations and stains can effect the value in any given grade. Circulated coins with original surfaces are more valuable than those which have been subjected to harsh cleaning or mishandling. Most business strikes are struck unevenly causing weakness in one quadrant. An uneven or soft strike should not be confused with wear. On the obverse, right side (facing), the laurel leaves are typically softer struck than the left side. The horizontal lines in the shield are often incomplete or mushy and weakness may also show in the shield’s vertical lines. On the reverse, the stars are typically uneven in strike quality. The numeral 5 is also weak in areas. Hub Type II shows some weakness on the shield- ’s ornamentation. Split grading, obverse/reverse, is common for circulated Shield nickels.
About Good (AG-3)
Obverse: Design is outlined but almost all details are worn away. Motto IN GOD WE TRUST only partially readable, but date is legible. Reverse: Rim will be worn down into the letters. Wear will extend into the letters UNITED STATES OF AMERICA and CENTS. Stars and 5 will be visible…though worn flat.
Good (G-4)
Obverse: Full rim (worn but all there). Rim may show some unevenness, due to strike. All lettering legible; but may be worn at the tops of letters. Date is complete. Shield vertical lines are usually not visible, but a few partial lines may show. Leaves are normally flat, however a partial vein may be visible. Reverse: Full rims (worn but all there). All lettering clear. Stars worn but not flat.
Very Good (VG-8)
Obverse: Full rim. Some shield lines, both horizontal and vertical are visible, but few are completely separated and a partial area may even be slick. Uneven wear is normal. A few details will show in the leaves. Reverse: Full rim. A few stars may show some center detail.
Fine (F-12)
Obverse: Most individual leaves will be separated and some details will be visible, but the leaves will be worn smooth halfway from tip to middle of leaves. Approximately half of the horizontal lines in shield are clearly visible and separated. Reverse: Lettering is strong and one or more stars will show complete lines. Number will be clear but weak. Grade by strongest star as many are weakly struck even in uncirculated.
Very Fine (VF-20)
Obverse: Leaves will be fully separated and many will show veins from the top to center of leaf. Half of horizontal lines in shield will be present, although unevenness in the strike may show flatness in mid or upper right area. Some detail in shield outline and arrows. Most denticles are visible, but may not be strong. Reverse: One or more stars may show details depending on strike. Denticles are medium to strong, again dependent on strike as well as wear.
Extremely Fine (EF-40)
Obverse: Leaves will be bold with most of the center lines showing. Shield lines should be clear, but may be lacking in certain areas due to strike. Should be some luster among the letters. Cross has some wear but is clearly defined. Tips of laurel leaves show some wear. Reverse: The strongest stars will show sharp lines. Some stars may be weak due to strike. Wear is present on the numeral 5.
About Uncirculated (AU-50)
Obverse: Besides wear, the presence of some luster is required for this grade. Very light wear will show on tips of leaves and on cross and shield. Reverse: Light wear on number and trace of wear on stars. Stars may be weakly struck.
About Uncirculated (AU 55-58)
AU-55: More luster than on the AU-50, less wear. Wear may show as a light ‘shine’ or color change (grayish) on leaves, cross and numeral 5, reverse. Due to weakness of strike parts of the cross, shield lines (especially horizontal lines) may be unevenly struck. Check for luster on these areas.
AU-58: Full luster, except for highest points. Wear may not be visible without a loupe. Check high points…cross, leaves, (obverse) and numeral 5, (reverse) for color change, luster, and circulation/rub indicators. Open fields should not show circulation. Only highest point wear allowed for this grade. Has the ‘look’ of a MS-63 (marks/luster) and at times may be offered as a MS-63. A highly desirable collector grade. and can be priced higher than a MS-60, based upon its eye appeal and rarity.
Grading Uncirculated Shield Nickels
MS-60
No wear may be present for this grade. Luster must be present, including on the high points. Coin may have been dipped at one time, possibly to remove stains or spots, but not to the extent luster is seriously impaired. Surfaces may be dulled due to environmental factors including improper storage. Marks and abrasions are usually detracting and numerous. Possible planchet flaw of some type may be present or minor rim ding. Hairlines may be numerous due to wiping at one time. Harsh abrasive cleaning will result in a no-grade even though the coin may not have been in circulation. Surfaces may also be stained or streaked to the degree of having a negative eye appeal quality. Normally a MS-60 is not an attractive coin and a combination of the above factors determine the grade level.
MS-63
Considered an average grade and a nice coin. Surface condition is important. Good luster, but not necessarily full luster. Degree and depth of luster is important even if surfaces are a bit dulled. Marks are minimal and not seriously detracting. Light planchet ‘chatter’ may be apparent on the shield and 5 reverse, caused by strike. A hit or numerous marks in the focal areas, even if not deep or too detracting may limit grade to a 63. Reasonable strike for date. Extreme flatness in leaves (usually found on right side, facing) would limit coin to this grade if other factors were acceptable. Most stars are not well struck. Shield lines should be reasonably defined. Major stains (dip residue) or unsightly spotting may confine a coin to this grade or lower.
MS-65
Originality and attractive surfaces weighs heavily for a gem grade. Must be well struck for date with very good luster. Some black specks will not keep a coin from this grade, but toning spots or streaks, dependent upon cause, may affect eye appeal and therefore the grade. Shield, wreath, and veins in leaves are well defined but may not be sharp. Some minor planchet abrasion on 5, reverse, is acceptable. Fields in open areas are free from hairlines/abuse, although if the fields are semi- mirrored a couple of minor hairlines might be allowed. Marks and hits must be few, minor and in inconspicuous areas. Focal areas given extra weight in evaluation. Very good eye appeal, overall, is expected.
MS-66 and up
Superior luster. Original attractive surfaces. Exceptional strike for date. No detracting or major marks. All factors considered in evaluation. Specks, if any, may not be detracting. Staining would be doubtful in this grade although a very light toning spot might pass, dependent upon cause. Strike requirement becomes much more stringent in 66 and up. Stars must be well defined although each one may not be sharp. The 5 is raised and well struck. Additional areas to check for strike: the veins in the leaves on the right side, the horizontal lines at the top and left side of the shield, obverse; on the reverse, the rays (if any). Superior eye appeal is required.
Grading Circulated Liberty Nickels
Like the Shield nickel, Liberty nickels are graded in circulated condition by wear. Cleaning, marks, rim dings, laminations and stains can effect the value in any given grade. Circulated coins with original surfaces are more valuable than those which have been subjected to harsh cleaning or mishandling. Eye appeal is important. Corn on the left side (reverse facing), is typically poorly struck. Check corn on lower right for a reasonable strike. Split grading is not as common as in the Shield series. Die cracks, and/or impurity spots should not affect the grade; however, if severe, they may influence the value.
About Good (AG-3)
Obverse: Head is outlined, but nearly all details are worn away. Date and stars merge with rim, but date is legible. Reverse: Rim worn and merges with letters. Number and part of wreath are visible.
Good (G-4)
Obverse: Rim is worn but intact. Liberty is outlined, but details are faint. The LIBERTY legend on headband is not legible. Stars and date are legible but well worn. Reverse: Rim is usually intact but worn… uneven wear may extend into tops of letters. E PLURIBUS UNUM is worn and faint. E is usually very weak. Strike may affect the motto. Most of wreath is outlined, no details.
Very Good (VG-8)
Obverse: Rim is complete and raised, but worn. A minimum of 3 letters or 2 full letters and 2 half letters must be clearly legible in LIBERTY. Due to strike problems, some allow half letters to make up one letter for a combination mix of 2 full letters and 2 half letters. Hair details are almost smooth. Reverse: Complete rim. Wreath is completely outlined. All letters are legible but E PLURIBUS UNUM is weak…especially the E.
Fine (F-12)
Obverse: A readable full LIBERTY on tiara is required… including the normally weak I in LIBERTY. About 1/2 hair detail-top of hair, bun, and some definition around the face. Reverse: Some details in wreath will be present, but wheat and leaves are smooth. E PLURIBUS is strong.
Very Fine (VF-20)
Obverse: LIBERTY is bold including the letter I. About 75% hair shows detail but hair is still faint above the ear and forehead. Reverse: Some of the veins in leaves although weak will show. Partial detail in corn (right facing) is present. Strength of veins and corn are subject to strike.
Extremely Fine (EF-40)
Obverse: LIBERTY on tiara is very bold. Barring a poor strike, detail on the hair will be complete; however, details above the ear and forehead are still semi-weak. Trace of luster should be found among the stars and edge. Reverse: Wear shows on bow, corn and high points of wreath. Some luster may be present in the recesses of the design.
About Uncirculated (AU-50)
Obverse: There will be light circulation on the high points which are the hair above forehead and above the ear. The cheek will show light rub. About 50-60% luster will be present across most of the coin. Reverse: Light wear on high points of wreath and bow.
About Uncirculated (AU 55-58)
AU-55: Noticeably less wear than on the AU-50. It’s mainly the degree of wear and luster that differentiate between the AU grades. About 75-80% luster for this high AU grade. Check focal points.
AU-58: Luster should be intact except for highest points. Careful checking will find high point wear. Has the ‘look’ of a MS-63 (marks/luster) and at times is offered as a MS-63.
Grading Uncirculated Liberty Nickels
The standards for grading uncirculated Liberty nickels are similar to those of the shield design. However, shortly after the opening of the third mint in 1902 Liberty nickels were better made and had far fewer production problems such as die cracks, planchet flaws and weak strikes.
MS-60
No wear may be present for this grade. Luster must be complete … including on the hi points. Coin may have been dipped at one time, possibly to remove stains or spots, but not to the extent where luster is seriously impaired. Surfaces may be somewhat dulled due to environmental factors including improper storage. Marks and abrasions are usually detracting and numerous. Possible planchet flaw of some type may be present or minor rim ding. Hairlines may be numerous due to wiping at one time. Harsh abrasive cleaning will drop the grade to a ‘no-grade’ level…even though the coin may not have been in circulation. Surfaces may also be stained or streaked to the degree of having a negative eye appeal quality. Normally a MS- 60 is not an attractive coin and a combination of the above factors determine the grade level.
MS-63
Considered an average grade and a nice coin. Surface condition is important. Good luster, but not necessarily full luster. Degree and depth of luster is important even if surfaces are a bit dulled. An otherwise above average coin for marks but with dull surfaces would probably be given a 63 grade. Marks are minimal and not seriously detracting. Some light planchet ‘chatter’ may be apparent on the V, reverse, caused by strike. A strong hit or numerous marks in the focal areas, even if not deep or too detracting may limit grade to a 63. Reasonable strike for date. Flatness in hair above ear (obverse), corn (right side facing, reverse), may limit coin to this grade if other factors are acceptable. Major stains (dip residue) or unsightly spotting will confine a coin to this grade or lower.
MS-65
Originality and attractive surfaces will weigh heavy for a gem grade as do marks and location. Must be well struck for date with very good luster. Some black specks will not keep a coin from this grade, but toning spots or streaks, dependent upon cause, may affect eye appeal and therefore the grade. Hair, full cheek, detail in wreath, the large V and corn on right side facing, reverse, are clearly defined but may not be sharp. Minor planchet abrasion on V, reverse, is acceptable. Fields in open areas are free from hairlines/abuse, although if the fields are semi-mirrored a couple of light and minor hairlines might be allowed if not detracting. Patches of hairlines indicating abuse would not. Marks and hits must be few, minor and in inconspicuous areas. Focal areas given extra weight in evaluation. Very good eye appeal, overall, is expected.
MS-66 and up
Superior luster. Original attractive surfaces. Exceptional strike for date. No detracting or major marks. All factors considered in evaluation. Specks, if any, must not be detracting. Staining would be doubtful in this grade although a very light toning spot might pass…dependent upon cause. Strike requirement becomes much more stringent in 66 and up. Devices must be well defined although not all may be completely sharp. The V is raised and well struck. Additional areas to check for strike: hair above ear, obverse, and corn, lower right, reverse. Corn on lower left reverse should show kernels, although they may not be full and complete. Superior eye appeal is required.