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Coins are generally graded according to the Sheldon scale, which is demonstrated below.  Coins are graded on a scale of 1 to 70, 1 being a barely recognizable coin and 70 being a perfectly struck new uncirculated coin.

A note about acid dates: It is at times possible to recover a date that has been worn flat on a buffalo nickel by a process known as "acid dating."  This damages the coin and significantly reduces its value.

Grading Buffalo Nickels

Grade	Description	Sample Images
P-1 (Poor)	Damaged and barely identifiable
FA-2 (Fair)	Great deal of wear, generally unattractive, but identifiable by date.
AG-3 (Almost Good)	Much of date will be obscured, but still recognizable.  Rim will be worn into Liberty, no horn on buffalo, rims worn into lettering.
G-4 to G-6 (Good)	May be much wear to date, some of date may be missing.  Rim may be slightly worn into Liberty.  Some remnants of horn may be visible on buffalo.
VG-8 to VG-10 (Very Good)	Some hair detail, full rims, clear date, up to 70% of horn visible.
F-12 to F-18 (Fine)	Strong rims, approximately 50% of hair features, full horn visible, although very weak at tip.
VF-20 to VF-35 (Very Fine)	Bold date, approximately 75% of hair features, complete horn, although flat.	(VF-20)
EF-40 to EF-45  (also XF-40 to XF-49)	Most of hair detail, bold rims and date, full horn.	(EF-40)
AU-50 (Almost Uncirculated)	Only slight wear noticeable on hair, horn is complete and somewhat rounded.  May not exhibit any luster.
AU-58 (Almost Uncirculated)	Only slight wear visible upon magnification to hair.  Complete and rounded horn, with only slight wear noticeable upon magnification to buffalo.  Some luster may be noticeable.
MS-60 (Uncirculated)	Free from any trace of wear.
MS-61 to MS-63 (Brilliant Uncirculated)	Showing moderate bag marks in field, and retaining much original luster
MS-64 (Choice Brilliant Uncirculated)	Showing only light bag marks in field, most mint luster present
MS-65 (Gem Brilliant Uncirculated)	Full mint luster, full strike, slightest of field distractions
MS-66 (Choice Gem Brilliant Uncirculated)	Full strike and luster, imperfections found only with magnifying glass
MS-67 to MS-69 (Extraordinarily Uncirculated Coin)	Full strike and luster, with no noticeable field distractions
MS-70 (Perfect)	Perfection both obverse and reverse, as well as rim -- very few coins reach this grade today; no early coins graded MS-70