Grading of World Paper Money
Grading a banknote is just as difficult as for grading a coin. Here are several considerations to be taken, and it is very important that you know most of these before making you grading. It is not enough just to say “the note looks nice an have never been in use”.
We trust that by using our comments and guidelines below for describing every grade of condition can help you to make up your own opinion. However, remember, to do the grading properly you need practicing.
INTRODUCTION
Grading is the most controversial element of the paper money collecting of today. Small differences in grading can make considerably differences in pricing. The process of grading is so subjective and dependent on external influences, such as light, that even a very experienced collector may grade the same banknote different under different situations.
To simplify the communication between buyer and seller it is important that the grading system and its standard terms are to be used by as many collectors as possible. One difficulty with the grading is that the wording does not have the same emphasize all over, and we can also see that the meaning can differ between the various languages.
GRADING AND PRICING
Simply we can say: The better grade the higher price, and an original note will normally be more expensive than a note which has been washed/cleaned or treated by other means.
As the number of collectors is increasing, the request for notes in higher grades is also increasing. From auctions we can see that this again will force the price even on common notes to a price level often fare above what we are expecting. Many difficult notes are normally not available in high grade. If such a banknote than appears in high grade, we will see a price level fare above what will be normal for a similar banknote normally available in high grade. Prices on Norwegian Banknotes, please see here: "Norwegian Banknotes"
Prices on World Banknotes issued before 1960, please see this
catalogue: "World Banknotes, General Issues"
Prices on modern issues after 1961, please see: "World Banknotes Modern Issues (1961 to date)"
HOW TO LOOK AT A BANKNOTE
When doing a grading on a banknote it is important first to take the banknote out of the plastic pocket and to do the examination under good light. Hold the banknote towards the light such that the light will fall in along the note, you will than be able to see all the small (hard to see) folds, any counting marks or other roughness in the paper, which you will not bee able to see with the light directly on the note. Turn the note upside down, to get the light from various angles. You might discover that a fold seen from one angle does not show up with the light from opposite angle. Some collectors can also feel the smallest fold with the finger. CLEANING, WASHING AND PRESSING A BANKNOTE
Cleaning, washing and pressing have normally a harmful effect on a banknote, which can both reduce the grade and the value. In worst case the banknote might lose its original colour or brightness and the surface may become lifeless and dull. Problems like folds and spots might by first sight seem to disappear after a cleaning, however, with proper light and careful examination, these defects will be detected. A banknote treated like this shall automatically be reduced in value by minimum a full grade.
Glue, tape or a pen mark might in some cases be successfully removed as well. The general look of such a cleaned banknote might in some few cases be improved.
Word like “pinholes”, “staple holes”, “trimmed”, “ink mark”, tape mark”, “edge tear”, fold tear”, “hole” etc. should always be added to the description of a banknote. It is also known that in some countries the banknote bundle is “stapled” from the bank. In such case it should be indicated with “normal staple holes”, as not everybody know that this is normal.
DESCRIPTION OF THE GRADING
As I have tried to indicate in this introduction, there are many considerations to be taken when grading and describing a banknote. We are doing our outmost to follow the international standard given by IBNS (International Bank Note Society) and are using these descriptions and abbreviations in our shop. The Norwegian (or Scandinavian) descriptions are in brackets.
UNC (U) = UNCIRCULATED – (0 = USIRKULERT)
A perfect note, not mistreated by the issuer, a bank teller or a collector. The paper is clean and firm, without any decolonization. The corners are sharp without any sign of rounding. An uncirculated note will have its original luster.
AU = ABOUT UNCIRCULATED – (0/01 = NESTEN USIRKULERT)
A virtual perfect note, with some few sign of minor handling. May show sign of counting marks or a light fold through centre, but not both. An AU banknote can not be creased or hard folded as this will normally have “broken” the surface of a banknote. The corners are not rounded. The paper is clean and with original luster.
EF (XF) = EXTREMELY FINE – (01 = EKSTRA PEN)
A very nice banknote, with light marks of handling. May have a maximum of three light folds or one heavy crease. The corners might have slight sign of rounding. The paper is clean and with original luster.
VF = VERY FINE – (1+ = MEGET PEN)
En attractive banknote, but showing sign of handling and wear. Might have a number of folds both vertically and horizontally. The paper might show minimal dirt or spots. The paper is still firm and crisp. No tears although the edges do show slight wear. The corners do show wear, but not fully rounded.
F = FINE - (1 = PEN)
A banknote which shows considerable circulation, with many folds, creases and wrinkling. The paper is not firm any longer, without being directly dirty. Minor tears in the border, but not into the design. No hole in centre due to folding is accepted. A pin hole or two can be accepted. The colours are still clear, but not bright. The general impression is still a nice banknote.
VG = VERY GOOD – (1- = MEGET GOD)
The description “Very Good” might be a bit confusing as this is a well used note, but still intact. The corners might be well rounded, small nicks and tears can extend into the design. Some discoloration might be present and stains might be present. A small hole in centre due to heavy folding can be accepted. Pin holes or staple holes are normal. The note itself is quite soft, but no part shall be missing. A note in VG is still a note with an overall not “unattractive” appearance.
G = GOOD – (1-/2 = GOD)
Here the description “Good” will for many collectors be confusing, as this is a well worn and heavily used note. Normal wear due to long time in circulation has caused lot of folds, stains, pinholes/staple holes, dirt, discoloration, tears, centre hole, graffiti and rounded corners which make the note overall unattractive. No larger pieces can be missing.
FR = FAIR – (2 = HEDERLIG)
A totally limp, dirty and well used note. Larger pieces can be missing or half torn off in addition to all the defects mentioned under the Good description. Tears can be larger and dirty spots bigger. A note like this is only collected as a “filler” or if this is the absolute best condition you will find.
PR = POOR – (3 = ELENDIG)
A “rag” with several important damages due to extensive use and wear. As described earlier but with bigger spots, bigger tears and more graffiti. A note like this can also be taped to keep the pieces together. As for a Fair note a note like this is only collected as a “filler” or if this is the absolute best condition you will find.
|
