Official ANA (American Numismatic Association) Grading System for Morgan Dollars

About Uncirculated: Small trace of wear visible on highest points.

AU-55 (Choice AU)
OBVERSE: Slight trace of wear shows on hair above ear and eye, edges of cotton leaves and high upper fold of cap. Luster fading from cheek.
REVERSE: Slight trace of wear shows on breast, tops of legs and talons. Most of the mint luster is still present, although marred by light bag marks an dsurface abrasions.

AU-50
OBVERSE: Traces of wear show on hair above eye and ear, edges of cotton leaves and high upper fold of cap. Partial detail visible on tops of cotton blossoms. Luster gone from cheek.
REVERSE: There are traces of wear on breast, tops of legs, wing tips and talons. Three-quarters of the mint luster is still present. Surface abrasions and bag marks are more noticeable than for AU-55.

Extremely Fine: Very light wear on only the highest points.

EF-45 (Choice EF)
OBVERSE: Slight wear on hair above date, forehead and ear. Lines in hair well detailed and sharp. Slight flat spots on edges of cotton leaves. Minute signs of wear on cheek.
REVERSE: High points of breast are lightly worn. Tops of legs and right wing tip show wear. Talons are slightly flat. Half of the mint luster is still present.

EF-40
OBVERSE: Wear shows on hair above date, forehead, and ear. Lines in hair well detailed. Flat spots visible on edges of cotton leaves. Cheek lightly worn.
REVERSE: Almost all feathers gone from breast. Tops of legs, wing tips and feathers on head show wear. Talons are flat. Partial mint luster is visible.

Very Fine: Light to moderate even wear. All major features are sharp.

VF-30 (Choice VF)
OBVERSE: Wear shows on high points of hair from forehead to ear. Some strands visible in hair above ear. There are smooth areas on cotton leaves and at top of cotton blossoms.
REVERSE: Wear shows on leaves of wreath and tips of wings. Only a few feathers visible on breast and head.

VF-20
OBVERSE: Smooth spots visible on har from forehead to ear. Cotton leaves heavily worn but separated. Wheat grains show wear.
REVERSE: Some leaves on wreath are well worn. Breast is smooth, and only a few feathers show on head. Tips of wings are weak but lines are complete.

Fine: Moderate to heavy even wear. Entire design clear and bold.

F-12
OBVERSE: Hairline along face is clearly defined. Lower two cotton leaves smooth but distince from cap. Some wheat grans merging. Cotton blossoms flat but the two lines in each show clearly.
REVERSE: One quarter of eagle's right wing and edge of left wing are smooth. Head, neck and breast are flat and merging. Tail feathers slightly worn. Top leaves in wreath show heavy wear.

Very Good: Well Worn. Design clear but flat and lacking details.

VG-8
OBVERSE: Most details in hair are worn smooth. All letters and date are clear. Cotton blossoms flat and leaves merging in spots.
REVERSE: Hair of eagle's right wing and one-third of left wing are smooth. All leaves in wreath are worn. Rim is complete.

Good: Heavily worn. Design and legend visible but faint in spots.

G-4
OBVERSE: Hair is well worn with very little detail remaining. Date, letters, and design clearly outlined. Rim is full.
REVERSE: Eagle is worn nearly flat but is completely outlined. Design elements smooth but visible. Legend is all visible; rim is full.

About Good: Outlined design. Parts of date and legend worn smooth.

AG-3
OBVERSE: Head is outlined with nearly all details worn away. Date readable but worn. Legend merging into rim.
REVERSE: Entire design partially worn away. Rim merges into legend.

When in doubt, compare the coin in question to one of known high quality, like the below example of MS-65: