Guide for grading banknotes?

I am starting to log in my banknote collection. Please direct me to any banknote grading guidance.

thank you…

Try looking here and following the links.

https://en.numista.com/forum/topic108343.html

For me: the best guide to grading banknotes is discussing a note's grade with fellow collectors. The more you practice assessing a note's condition, the better you'll get the hang of it (like any skill). If you want to improve, you need to participate (practice) in an environment where you're not afraid to make mistakes. What I used to do was go to my local branches and ask for crisp new banknotes. You need to see what a good uncirculated banknote should look like as a starting point. Even the ones that you get from a bank have usually been handled. The slight handling is what brings a note down from a perfect GEM UNC 70. This is where it gets tricky & certifiers use light boxes and loupes to examine a note minutely.

A great technique is to put up a pen light adjacent to the note to see what imperfections will show up.

Check this link out from PMF to get a better idea what I mean. It would help each and everyone new to paper currency to participate in forums like these. Don't worry, you don't need to register, but at least try guessing the grade.

Get familiar with terms like "Exceptional Paper Quality" (EPQ on PMG) and "Original" which means the paper has not been pressed (flattened in a book) or altered in any way. You will want to detect embossing, the impression a printer makes on a note when it prints the serial numbers and other features on a note. It is very important to look at the back of a note and behind the serial numbers to see there's embossing.

Counting flicks, edge tears, soiling, glue residue, ink graffiti and all sorts of problems impair a note and cause it to lose the EPQ or PPQ status. Edges & corners should be razor straight and sharp. There should be no edge bumps. Discover the difference between a fold and a crease (broken paper fibres). These are important to note in AU & EF grades.

Most early US notes and the 1954 Series often have a bit of a slight wavy appearance. This is normal. You will see cutting cups in the paper where the security strips have been planted too. The counting cups will cause demerits & that is another reason it is unlikely for a note to get a perfect 70 score. Get to understand what is normal from series to series. Be sure to learn to grade & DON'T rely on the assessment of TPG (Third Party Graders) as these certifiers are fallible & miss things too. Remember patience as it's easy to miss things when you first start analyzing a note. Talk it out & discuss what you think a note's grade is with other collectors. Good luck!

One other thing for the high Uncirculated grades:
be aware of how the note was printed. Where is the design? Is it perfectly centred? This is also factored in with the higher grades. When you see UNC notes with the numbers 64, 66 or 68, that usually means both sides of the note are perfectly centred. For 63,65 & 67 one side may be just slightly off (but otherwise the note is flawless with 65 & 67). I have found many Canadian sellers will attribute poorly centred notes as "GEM" b/c the note seems perfect but they'll forget that the design (& borders) are uneven. US sellers (& collectors) always eyeball how well a note is centred b/c several series from the BEP are hard to get with perfect jumbo borders (well centred).

AU (50-58): perfect note but has a counting flick, or an edge bump, or a light fold that doesn't traverse the whole note. Slight evidence of handling.

EF (40-45): 2-3 folds (not creases) and evidence of handling.

Very Fine: is the widest range (from 20-35) & is probably the most common grade we see from circulated paper money. I have found PMG (& PCGS) very forgiving for slabbing very soiled BEP older series with VF20 or VF25 (stay clear of these). These notes are over graded IMO. Note can have 3 creases but should be crisp and clean (next to no soiling).

Fine 10-18: Worse than VF, soiled & one crease will show design has worn off slightly. 18 note may retain some of its crispness. 12-10 its pretty limp.

Very Good (5-10) Very soiled, limp & Two or more creases show design wear.

Hope some of this helps.

Excellent summary Serial_Number_8

Quote: "BluHawk"​Excellent summary Serial_Number_8

​-Thanks. Hope it helps.

I am trying to understand grading. It would help me to know what you think of such a note. Is it collectable?
Thank you-

Your note is P-380f & you have asked the grade & whether it is "collectible." The grade of your note looks to be in "Fine" condition but I would need to inspect the reverse (back) of the note in person to be sure. It is very difficult to assess a note's condition from either a scan or photo (as I explained in earlier posts) since one needs to use side-lighting & look at if from various angles. For example, I cannot tell whether your note has been trimmed on the left border but it appears as if it either has or you've cropped the image so we cannot see that border. Edge tears & stains take away from the note's eye appeal. Notes often wear worse on the back (since they get put in wallets & sometimes rub up against the billfold. If design is missing from the creases (on the back) your note would be VG-F (Very Good to Fine). The entire note has to be considered when assessing its grade/condition.

Here is P-380e in VG to Fine on eBay for $8.00 CDN.
You could find P-380e in Very Fine for $10 USD on eBay. For some collectors, "collectible" might be that the note should have a minimum value or is TPG. For others, collectible is only high grade, rare/tough year, signature, prefix, special number or it might be simply a great design, motif or allegory.

It depends on what you define as "collectible." Your note is over 70 years old & I like the old classic design but I have no idea if it is hard (or easy) to source. You have to make that decision if you wish to keep it (or not).

Quote: "Serial_Number_8"​Your note is P-380f & you have asked the grade & whether it is "collectible." The grade of your note looks to be in "Fine" condition but I would need to inspect the reverse (back) of the note in person to be sure. It is very difficult to assess a note's condition from either a scan or photo (as I explained in earlier posts) since one needs to use side-lighting & look at if from various angles. For example, I cannot tell whether your note has been trimmed on the left border but it appears as if it either has or you've cropped the image so we cannot see that border. Edge tears & stains take away from the note's eye appeal. Notes often wear worse on the back (since they get put in wallets & sometimes rub up against the billfold. If design is missing from the creases (on the back) your note would be VG-F (Very Good to Fine). The entire note has to be considered when assessing its grade/condition.
​
​Here is P-380e in VG to Fine on eBay for $8.00 CDN.
​You could find P-380e in Very Fine for $10 USD on eBay. For some collectors, "collectible" might be that the note should have a minimum value or is TPG. For others, collectible is only high grade, rare/tough year, signature, prefix, special number or it might be simply a great design, motif or allegory.
​
​It depends on what you define as "collectible." Your note is over 70 years old & I like the old classic design but I have no idea if it is hard (or easy) to source. You have to make that decision if you wish to keep it (or not).

​Thank you for the perfect reply. Yes I also like the classical design. I have quite a number of notes, but it is only recently that I have begun to think about what It is I have collected. My note is probably in between the two examples you gave. I have been in the habit of buying odd notes when I see them, but now I begin to find them really interesting.
Thank you again.

You're welcome. It's a pretty cool note for its age & looks to have original vibrant colours. You don't see many of them so quite collectible IMO.

Some good guides here. My basic rule of thumb for high grade notes has always been.

UNC - Must have no folds, creases or even bumps from where tellers have licked their fingers and counted notes. It must be absolutely flat - no exceptions.


Uncirculated 10 Kina, flat and sharp and Uncirculated Tongan notes

AU - Very light creases that don't break the paper - just one, minor counting bump allowed.


AU - as the hologram causes paper bumps and a counting lump by the bird of paradise

EF - One central fold as long as the crease does not break the paper or polymer, all colours and design are sharp and bold. No dogearing or rounded corners. Paper very crisp


Bottom note is EF, the top one is a low VF - The $50 at bottom is a high VF, big central crease and some lumps but otherwise a nice shiny and crisp note! Notes behind are standard EF with light crease and some bumps.

High VF - One central fold that has a strong crease, minor contact on corners, note looks very attractive, paper crisp and lettering sharp. Minor colour fade allowed on some Polymer notes.

VF - Few light folds and central crease, slightly rounded corners, still clean and sharp appearance, paper is crisp, light rumpling and aging allowed.


The notes on the left would grade between Fine and VF, the ones on the right are Very good.

Fine - Generally Polymer does not get this bad, paper, you can have rounded corners, the paper is limp rather than crisp now, but there are no holes or tears and the corners can be no longer sharp. Smells okay and is generally an acceptable note.

Very Good - this is the grade where almost anything goes, what you have is a limp rag covered in folds and creases, it may smell. However the design and colours are clear, the note is complete (Small pinholes are allowed but no more than 1 percent missing and only 1 small non distracting tear). Folds may make the flattening of such a note hard (Look at the dollar above - this is textbook VG.

Good - A real misnomer, a note in Good condition is awful, limp missing or rounded corners, stains and smell and holes. But you can still read the note, it must be nearly complete (95% or more), have no MAJOR damage and still be usable. Excessive wrinkles etc can also dominate this grade.


A note between Good and Very Good - notice the missing corner, stains and wrinkled appearance. Its an early example and low serial number, hence why I keep it.

Fair - Nothing fair about it, a note with all the defects so far, limp, stained, smelly, and holes along with pieces of it missing up to 20% and very unsightly stains. But you MUST be able to identify a note in this grade, whereas in Poor, any rational guess will do.


The £5 note at top would be Fair - Notice the folds and splitting, wrinkles, stains and smells, in the flesh its awful. I paid UNDER face for it! Notes below are VF and Fine.

Poor - Unidentifiable piece of paper that probably was once a note, can have chunks missing, holes, stains, smells and be unreadable. Great for lining ferret cages only.

Nice summary "Moneytane." I like the way you added appropriate photos and made reference to smells. I will never forget seeing all these comments on another forum when a seasoned collector suggested the O.P. describe the smell of the note he posted. It was funny but TBH it's always a good idea to smell a note to detect if its been cleaned or not. Most coin collectors may miss this important step in analyzing one's recent acquisition.

Just a few areas I would take issue with in your detailed guide to grading:
1) "AU - as the hologram causes paper bumps and a counting lump by the bird of paradise"
-the cutting cups (or indentations) caused by the security strips are usually 'okay' & don't knock a note out of the UNC realm (ballpark) since the note was cut (& the strip provides resistance to the shearing). The note still did not reach circulation & should not be considered AU. Counting cups are considered acceptable production variables. The degree in which the paper is folded will take the note down a few points- so rather than Choice Unc 64 it may get a UNC63 or UNC62 -UNC60.
2) "High VF - One central fold that has a strong crease, minor contact on corners, note looks very attractive, paper crisp and lettering sharp. Minor colour fade allowed on some Polymer notes."
Yes, for non EPQ (non original) but not for EPQ nor "Original" notes.
Many collectors don't realize that a VF35EPQ is an awesome note which is mostly problem free (like EF45 & AU50-58EPQ)
3) Notes are no longer "Orignal" in "Fine" for this grade but the note only has a large degree of circulation (folds, creases) but NO missing design in the folds. I would also disagree with your statement that "generally polymer doesn't get this bad..." as I have searched thousands of brutal Canadian polymer Tens & Fives. Our notes wear/degrade rapidly & you can see right through the substrate. BCS (our TPG) is very strict with polymer due to the scratches that the plastic show right off the bat. With scratches, they lose their "Original" designation.
4) I would not consider your low # Wilson 10s/ note a "Good" but rather a VG-Fine. In these lower grades (F to Fair) it is soiling that bumps a note down (not missing pieces or edge tears). Tears, impairments & other issues should be noted. This is not always done (by one prominent TPG which shall remain nameless) but that's what should be expected. Even your 5 Pound looks more VG to Fine rather than "Fair." You grade the note in general & then list the impairment.

Yes I will admit I grade VERY HARD. I expect perfection for my notes (Dealers hate me, but they all know I am honest).

I think with Polymers, maybe - but here we must take good care of our notes. I think because of EFTPOS which is widely used and been universally free since 2010 and only minor costs for some since 1992 - notes get very little use and mostly its $5, $10 and $20 that do. Plus I think our Polymer notes are high quality productions that last well. At the moment with lockdown I would say there is almost no money use at all - they want credit cards and contactless only - although Extream with Cream cases (Like 99 year old pensioner or poor minority family who can't get a bank account) they will grudgingly allow cash usage.

Plus our reserve bank reels in worn notes quickly and replaces them.

With my gradings - I defend them as.

1. The Wilson 10/- Yes you could say a weak VG, but if you picked it up you would realise its actually shrunken slightly at right and almost feels plasticy like someone has tried to shrink it and the folds are inbred like rumpled skin. It is a truly awful note.

2. The £5 - Looks decent in photos, but its limp and folded into 8 and 3 of the 4 quadrants on the middle line are torn right through, one segment is nearly fallen out and there are missing corners and the whole note is more limp than 2 week old celery that has been in water. In general in the flesh - it looks awful.

3. I have no idea what EPQ means and original - so you are suggesting the notes are fakes or just later reprints of the same design. In New Zealand our series used the same designs for ages.

1. Lefeaux series - 1934/40 - 1 signature
2. Sterling/Cook series - 1940/1967 - 3 signatures
3. Queen with big hair/Tiara - 1967/1981 - 4 signatures
4. Queen with perm and smiling - 1980/1991 - 3 signatures
5. NZers issue - Paper 1992/1999 - 1 signature
6. Polymer 1st issue with NZers 1999/2016 - 3 signatures
7. Modern Polymer with bigger letters and Maori language - 2015 -now - 2 signatures.

"Yes I will admit I grade VERY HARD. I expect perfection for my notes (Dealers hate me, but they all know I am honest)."
- You are wise to take this approach. Trust me when I write that to err on the side of strict/conservative assessments, is the absolute best way to go. Sounds like you have the dealer's respect (& that's not easy!)

" At the moment with lockdown I would say there is almost no money use at all - they want credit cards and contactless only - although Extream with Cream cases (Like 99 year old pensioner or poor minority family who can't get a bank account) they will grudgingly allow cash usage..."
- Scientists have proven almost beyond a shadow of a doubt that Covid-19 - an airborne virus- contagious through the eyes and nostrils (into the lungs), & will not be caught through the use of money. Money is almost an impossible VECTOR (unless you are rubbing the plastic notes in your eyes right after being with a heavily infected individual/rolling up the note to snort coke, etc). It's sad, but true that the BTCA have been milking this pandemic to spread fear, lies and outrageous propaganda re: how dirty cash is (but that's another thread). They also like to emphasize how poor people are suffering b/c they don't have a bank account (& big brother/Google/SM cannot track your commerce). Don't get me started!

"1. The Wilson 10/- Yes you could say a weak VG, but if you picked it up you would realise its actually shrunken slightly at right and almost feels plasticy like someone has tried to shrink it and the folds are inbred like rumpled skin. It is a truly awful note"
- I will always defer to you, the owner of the note, who has the final say. Inspecting a note in person is a must & one of the reasons why buying (or swapping) banknotes is so risky. Ditto for the other points you made. I was just making comments from what I saw of the images & it is important to remember that issues/comments (or notes on notes) are NOT a good thing (like "Stained"). One also doesn't want "Net" or "Apparent" on their TPG note b/c that usually means the note has been processed to look better than it is. If the note is smaller than it should be then it has likely been washed.

"3. I have no idea what EPQ means and original - so you are suggesting the notes are fakes or just later reprints of the same design. "
Not at all (your notes are more than likely legit). EPQ is an acronym for Exceptional Paper Quality & "Original" means that the note is as it was when it was printed- non-doctored, not pressed, not processed in any way. The other one you will see is PPQ (for Perfect Paper Quality) from PCGS. "Original" comes from a grader here in Canada, Banknote Certification Services (BCS) & we tend to avoid comments like flat, or appears clean, etc b/c of the negative connotations with "Apparent" & flat suggests it may have been pressed (our notes are often wavy). BCS, like English graders, tends to be harsh/conservative. This is better for the collector (unlike PMG or PCGS).

From your 3 comments (defence for your grades), I wouldn't be surprised & would suggest that your older pre-decimal notes are non-EPQ or "non-original," meaning they've been washed or "doctored" to make them look better than they should. The term has nothing to do with legitimacy but more about what unsavoury individuals (dealers/sellers) may do in order to make notes look better/sell for a higher profit.

Attaining "Original" or "Q" designated notes (as many American collectors call them), is the real challenge & these notes are what many of the long-term collectors seek & will pay much more for than the notes without these qualifiers.