I don't think that "states" merging into the rim would reduce this coin to AG. Not all coins are graded using the same standard. I have seen coins with some merging receive higher grades with some coins but for others, merging is found on AG coins. It seems this depends on the age of the coin. AG coins in this series have the eagle worn completely smooth which is not the case of this coin. I am really wondering though if the merging could net this coin to a G grade but the details on the eagle look to be a VG grade.
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