$5 Indian Head Gold Coins XF
"XF" is a contraction for the denotation of "Extremely Fine" on the Sheldon Scale, which was developed in 1949 by Dr. William Herbert Sheldon. The scale ranges from 1 on the low end to 70 on the high end. XF coins tend to fall in the 35-45 range. A $5 Indian in this grade will be worn and circulated, however the designs will still be discernible and the lettering legible. Indians of this denomination, or value, did see use in commerce more-so than the $10 or $20 pieces, and therefore not as many survived in XF or even MS, or "Mint State" grades.
Specifics of the Grade
A $5 Indian may receive a grade of Extremely Fine for several reasons, which might include a specific type of wear known as"Bag marks" which occur when the soft gold coins in the bottom of a sack of coins are marred by the shifting weight and friction of other coins in the sack coming into contact with them (Think a sack of gold coins being transported by an old railroad car). Also, an XF coin may have been created by a worn down die, showing cracks and less than optimal intricate detailing of the coin's design. Also in the XF designation, many nicks or scratches probably occur on the "Field", or smooth areas where there are no designs on the coin, though there will also probably be noticable wear on the incused, or sunken designs of the obverse Indian and reverse eagle.