Introduction to International
Banknote Grading Standards
Grading is the most
controversial component of paper money collecting today.
Small differences in banknote grade can mean significant differences in value. The process of grading
is so subjective and dependant on external influences
such as lighting, that
even a very
experienced individual may well grade the same note
differently on separate occasions.
? 

To facilitate communication between sellers and
buyers, it
is essential that
grading terms and their meanings be standardized and as widely used as
possible. This standardization
should reflect common usage as much as practicable. One difficulty with
grading is that even
the actual
grades themselves are not used every place and
by everyone. For example, in
Europe the grade About Uncirculated (AU) is not in
general use, yet in North America it is widespread. The European term
GoodVF may roughly correspond to what
individuals in North America would call EF. |
|
|
The grades and
definitions as set forth below cannot reconcile all the
various systems and grading terminology variants. Rather, the attempt is made here to try and
diminish the controversy with some common sense grades
and definitions that
aim to give more
precise meaning to the grading language of paper money.
Grade
Relating to Price
 |
|
Generally
speaking, the higher the grade of a banknote,
the more money that
banknote will command on the open market. Also, original
banknotes generally command higher prices than cleaned
or doctored banknotes.
Most catalogues will
attempt to give pricing information in various grades as a
guideline to what the current market will bear, however,
most catalogues in the banknote hobby are woefully trailing
actual market prices.
Most collectors will attempt to purchase
banknotes for their
collection in the highest grade possible and then
keep their eyes open
for better grades as time goes by upgrading whenever
possible.
 |
As the number of
banknote collectors increase, this "drive for high
grades" tends to push the market prices for scarce
high grade notes to levels much higher than expected. For
example a banknote may be priced at $100 for a VG, $250
for a VF and $800 for an UNC. The reason for this can be
summed up as simple "supply and demand". There
are far more banknotes surviving in lower grades.
Most scarce and rare
banknotes may not even be available in extremely high
grades. In cases such as this, the pricing may be more
like $100 for a VG, $250 for a VF and un-priced in UNC.
If an UNC banknote does become available, it will
normally be sold either at auction or privately to an
informed buyer who understands the rarity of this note in
this grade.
How
to look at a banknote
In order to ascertain the
grade of a note, it is essential to examine it out of a
holder and under a good light. Move the note around so that the light bounces off at
different angles. Try holding it up obliquely so that the
note is almost even with
your eye as you look
up at the light. Hard-to-see folds or slight creases will
show up under such examination. Some individuals also lightly feel along the surface of the note
to detect creasing.
Cleaning,
washing, pressing of banknotes
Cleaning, washing or pressing
paper money is generally harmful and reduces both the
grade and the value of a note. At the very
least, a washed or pressed note may lose its original
sheen and its surface may become lifeless and dull.
The defects a note had, such as folds and
creases, may not necessarily be completely eliminated and
their telltale marks
can be detected under
a good light. Carelessly washed notes may have white
streaks where the folds or creases were (or still are).
Processing of a note which
started out as Extremely Fine will automatically reduce
it at least one full grade.
Glue, tape, or pencil marks
may sometimes be successfully removed. While such removal
will have a cleaned surface,
it will improve the overall appearance of the note
without concealing any of its defects. Under such circumstances, the grade of the
note may also be improved.
The words
pinholes, staple holes,
trimmed, writing on face,
tape marks, "tears", etc. should
always be added to the description
of a note. It is realized
that certain countries routinely staple their notes
together in groups before issue. In such cases, the description can include a comment such as
usual staple holes or something similar.
After all, not
everyone knows that such-and-such a note cannot be found
otherwise.
The major point of this
section is that one cannot lower the overall grade of a
note with defects simply because of the defects.
The price will reflect the
lowered worth of a defective note, but the description
must always include the specific defects.
The Term
Uncirculated
The word
Uncirculated: is used in this grading guide
only as a qualitative measurement of the appearance of a
note. It has nothing at all to do with whether or not an
issuer has actually released the note to circulation.
Thus the term About
Uncirculated is
justified and acceptable because so many notes that have
never seen hand-to-hand use have been mishandled
so that they are available in, at best, AU condition.
Either a note is uncirculated in condition or it not; there can be no degree of uncirculated. Highlights
or defects in color, centering and the like may be
included in the
description but the
fact that a note is or is not in uncirculated condition
should not be a disputable point.

Grading
Guide - definition of terms
UNCIRCULATED (UNC): A perfectly
preserved note, never mishandled by the issuing
authority, a bank teller, the public or a collector. Paper is
clean and firm, without discoloration. Corners are sharp and square, without
any evidence of rounding, folding or bending. No light
handling is present, no compromise, a perfect note. An
uncirculated
note will have its original, natural sheen.
NOTE: Some note issues
are most often available with slight evidence of very
light counting folds which do not "break"
the paper. Also
French-printed notes usually have a slight ripple in the
paper. A banknote that has less than perfect corners is
considered nearly uncirculated. Many collectors and
dealers refer to such notes as AU-UNC.
ABOUT
UNCIRCULATED (AU): A virtually
perfect note, with some minor handling. May show very
slight evidence of bank counting folds at a corner or one light fold
through the center, but not both. An AU note can not be
creased, a crease being a hard fold which has usually
"broken" the surface of the note. Paper is
clean and bright with original sheen. Corners are not
rounded.
EXTREMELY
FINE (EF/XF): A very attractive
note, with light handling. May have a maximum of three
light folds or one strong crease. Paper is clean and bright with
original sheen. Corners may show only the slightest
evidence of rounding. There may also be the
slightest sign of wear where a fold meets the edge.
VERY
FINE (VF): An attractive note,
but with more evidence of handling and wear. May have
several folds both vertically and horizontally. Paper may have
minimal dirt, or possible colour smudging. Paper itself
is still relatively crisp and floppy. There are no tears into
the border area, although the edges do show slight wear.
Corners also show wear but not full rounding.
FINE
(F): A note which shows
considerable circulation, with many folds, creases and
wrinkling. Paper is not excessively dirty but may have some
softness. Edges may show much handling, with minor tears
in the border area. Tears may not extend into
the design.
There will be no center hole because of excessive
folding. Colours are clear but not very bright. A staple
hole or two would not be considered unusual wear in
a Fine F
note.
Overall appearance is still on the desirable side.
VERY
GOOD (VG): A well used note,
abused but still intact. Corners may have much wear and
rounding, tiny nicks, tears may extend into the design, some
discoloration may be present, staining may have occurred,
and a small hole may sometimes be seen at center from excessive
folding. Staple holes and pinholes are usually present,
and the note itself is quite limp but NO pieces of the
note can be missing. A note in VG condition may
still have an overall not unattractive appearance.
GOOD
(G): A well worn and
heavily used note. Normal damage from prolonged
circulation will include strong multiple folds and creases, stains,
pinholes and/or staple holes, dirt, discoloration, edge
tears, center hole, rounded corners and an overall
unattractive
appearance. No large pieces of the note may be missing.
Graffiti is commonly seen on notes in G condition.
FAIR (FR): A totally limp,
dirty and very well used note. Larger pieces may be half
torn off or missing besides the defects mentioned under the
Good category. Tears will be larger, obscured portions of
the note will be bigger.
POOR (PR): A "rag"
with severe damage because of wear, staining, pieces
missing, graffiti, larger holes. May have tape holding
pieces of the
note together. Trimming may have taken place to remove
rough edges. A Poor note is desirable only as a
"filler" or when such a note is the only one known of
that particular issue.
Grade |
UNC |
AU |
EF |
VF |
F |
VG |
G |
FR |
PR |
Features |
Uncirculated |
About Uncirculated |
Extremely Fine |
Very Fine |
Fine |
Very Good |
Good |
Fair |
Poor |
Edges |
No counting marks |
Light counting folds |
Light counting folds |
Corners aren't fully
rounded |
Much handling |
Rounded edges |
Rounded edges |
Rounded edges |
Rounded edges |
Folds |
No folds |
Light center fold |
3 light folds or one strong
crease |
Several horizontal and
vertical folds |
Many folds and creases |
Many folds and creases |
Many folds and creases |
Many folds and creases |
Many folds and creases |
Paper colour |
Clean paper, bright colours |
Clean paper, bright colours |
Clean paper, bright colours |
Paper may have minimal dirt
or some color smudging; still crisp |
No excessive dirt, but some
softness |
Paper may be dirty,
discolored or stained |
Very dirty, discolored,
graffiti |
Limp, very dirty,
discolored, graffiti |
Limp, extremely dirty,
discolored, graffiti |
Tears |
No tears |
No tears |
No tears |
No tears |
Minor, outside design |
Tears into the design |
Tears into the design |
Tears into the design |
Tears into the design |
Holes |
No holes |
No holes |
No holes |
No holes |
No center hole |
Center hole, staple hole |
Center hole, staple hole |
Center hole, staple hole |
Center hole, staple hole |
Integrity |
No pieces missing |
No pieces missing |
No pieces missing |
No pieces missing |
No pieces missing |
No pieces missing |
No large pieces missing |
Large pieces missing |
Taped pieces, a rag, a
filler |
Standard
International Grading Terminology & Abbreviations
Country
/ Grade |
Uncirculated |
Extremely Fine |
Very Fine |
Fine |
Very Good |
Good |
Poor |
USA &
English |
UNC |
EF
or XF |
VF |
F |
VG |
G |
PR |
Brazil |
(1)
FE |
(3)
S |
(5)
MBC |
(7)
BC |
(8) |
(9)
R |
UTGeG |
China |
- |
- |
- |
- |
- |
- |
- |
Czechia |
- |
- |
- |
- |
- |
- |
- |
Denmark |
0 |
01 |
1+ |
1 |
1- |
2 |
3 |
Finland |
0 |
01 |
1+ |
1 |
1- |
2 |
3 |
France |
NEUF
(AU = SPL) |
SUP |
TTB |
TB |
B |
TBC |
BC |
Germany |
I
(BFR) |
II
(VZGL) |
III
(SS) |
IV
(S) |
V
(SG) |
VI
(G) |
VII
(GS) |
Italy |
FdS |
SPL |
BB |
MB |
B |
M |
- |
Japan |
Mishiyo |
Goku
Bihin |
Bihin |
Futsuhin |
n/a |
n/a |
n/a |
Lithuania |
(0)
NP |
(1)
YP |
(2)
LP |
(3)
P |
(4)
LG |
(5)
G |
(6)
M |
Netherlands |
FDC
/ UNC |
PR |
ZF |
F |
ZG |
G |
- |
Norway |
0 |
01 |
1+ |
1 |
1- |
2 |
3 |
Poland |
- |
- |
- |
- |
- |
- |
- |
Portugal |
Novo |
Soberbo |
Muito
Bo |
- |
- |
- |
- |
Romania |
NC |
- |
FF |
F |
FBC |
BC |
M |
Russia |
- |
- |
- |
- |
- |
- |
- |
Spain |
Lujo |
SC,
IC or EBC |
MBC |
BC |
- |
RC |
MC |
Sweden |
0 |
01 |
1+ |
1 |
1- |
2 |
- |
Popular |
New
(About New) |
Lightly
Circulated |
Circulated |
Very
Circulated |
Heavily
Circulated |
Damaged |
Rag |
|
Some
translations of the abbreviations of the above
grading terminology
|
|
|
|
France
- Republique Francaise
NEUF - New
SPL - Splendide
SUP - Superbe
TTB - Tres Tres Beau
TB - Tres Beau
B - Beau
TBC - Tres Bien Conserve
BC - Bien Conserve
|
|
Germany
- Bundesrepublik Deutschland
BFR - Bankfrisch
VZGL - Vorzüglich
SS - Sehr Schön
S - Schön
SG - Sehr Gur erhalten
G - Gut erhalten
GS - Gering erhalten Schlecht
|
|
|
|
|
|
Italy
- Republica Italiana
FdS - Fiore di Stampa
SPL - Spledido
BB - Bellissimo
MB - Molto Bello
B - Bello
M - Mediocre |
|
Lithuania
- Lietuva
NP - Nepriekaistingas
YP - Ypatingai Puikus
LP - Labai Puikus
P - Puikus
LG - Labai Geras
G - Geras
M - Menkas |
|
|
|
|
|
Netherlands
- Nederland
UNC - Ongecirculeerd
PR - Prachtig
ZF - Zeer Frai (Zeer Mooi)
F - Fraai (Mooi)
ZG - Zeer Goed
G - Goed |
|
Spain
- España
EBC - Extraordinariamente Bien Conservada
SC - Sin Circular
IC - Incirculante
MBC - Muy Bien Conservada
BC - Bien Conservada
RC - Regular Conservada
MC - Mala Conservada |
|
|
|
|
|
The above grading
terminology is probably incomplete.
Corrections and new proposals are
welcome. |
|
|
|
|
How Many Grades are
there for grading world paper money?
Grades and intermediate grades I have
written down that are used by collectors
and dealers all around the world: Poor,
Fair, aGood, Good, Good+, G-VG, aVG, VG,
VG+, VG-F, aFine, Fine, Fine+, F-VF, aVF,
VF, VF+, VF-XF, aXF, XF(or EF), XF+,
XF-AU, aAU, AU, AU+, AU-UNC, aUNC (or
UNC-), UNC, Choice UNC, Gem UNC.
So, how many? Thirty
(30)! Should we use all 30 grades when
grading banknotes? Yes, we should,
although it is not easy to remember all
the grades, but as you can see, to
properly grade a paper note, at least 30
grade variations are needed and probably
even more than thirty. Here's a numerical
grading scale which could be used
internationally:
10 = UNC
9 = AU
8 = XF
7 = VF-XF
6 = VF
5 = F-VF
4 = F
3 = VG
2 = G
1 = FR
0 = PR |
|
 |
|
 |
|
 |
|
 |
(use
+ or - signs for more precise grades)
|
|
|
Sheldon Grading Scale
70
- Superb Gem Uncirculated |
|
To qualify for
the 70 grade, banknotes must have no evidence of
handling visible under 5x magnification. The
margins and registration must appear perfectly
centered to the unaided eye. Corners will be
fully sharp and eye appeal will be phenomenal. |
69
- Superb Gem Uncirculated |
|
This note is
nearly visually indistinguishable from a 70 but
the margins and registration may appear slightly
off center. There is no evidence of handling
visible to the unaided eye. Upon closer
inspection the margins may appear the smallest
bit off center, the slightest imperfection or
evidence of very minor handling may be noted
under 5x magnification and outstanding eye
appeal. |
68
- Superb Gem Uncirculated |
|
A nearly flawless
note that after brief inspection with the unaided
eye, may have some evidence of a very minor
imperfection such as slightly off-center margins,
a small packaging mark, a small crinkle in the
paper, or a very light ink smudge. There may be
very minor handling. |
67
- Superb Gem Uncirculated |
|
Centering can now
be slightly off center to the unaided eye but
still well above average. Minor handling marks
and small flaws may now be visible. A note with
above-average margins and registration. There may
be minor handling. |
66
- Gem Uncirculated |
|
Centering will be
above average, but if the rest of the banknote is
essentially flawless allowance of tighter margins
is acceptable. There may be slightly more
handling than a 67 note. |
65
- Gem Uncirculated |
|
A gem-quality
banknote with above-average eye appeal that may
exhibit more noticeable and numerous
imperfections, although none too distracting.
Depending on the paper quality and number of
visible flaws, centering in this grade can range
from slightly below average to excellent. |
64
- Choice Uncirculated |
|
Centering may now
be significantly off center. Some or all of the
corners may have lost their full sharpness.
Handling may be more significant with counting
crinkles, packaging issues, and minor corner
folds in the notes margin that will not
enter the design. |
63
- Choice Uncirculated |
|
Centering can
range from poor to average, depending on the
amount and severity of other flaws on the note.
There may be more pronounced pinching and minor
folds in the margins, but no fold can span the
length or width of the note. |
62
- Uncirculated |
|
Centering can be
well off center. There may be numerous flaws and
distractions that render this note out of the
choice category. Corners can be rough with some
creasing, however any fold that spans from edge
to edge will not be classified as uncirculated.
The margins may touch or come into the design. |
61
- Uncirculated |
|
The note is
poorly centered and the margins come into the
design. There may be counting marks, smudges or
other signs of handling. There will be no folds
through the design. |
60
- Uncirculated |
|
A note with
problems that may include toned paper, a small
stain or fading. There will be handling issues
but there will be no folds through the design. |
58
- Choice About Uncirculated |
|
A note that
appears to grade uncirculated, but upon closer
observation a light vertical fold, often a
centerfold, is noted. Other ways to arrive at
this grade are clear corner folds that enter the
design, or simply a note that while it does not
have a centerfold, has clearly worn corners and
edges. |
55
- About Uncirculated |
|
This grade is
commonly assigned to a note that has one fold or
two to three corner folds through the design.
Often it is a note that has two light vertical
folds. |
53
- About Uncirculated |
|
A note with two
vertical folds or a single horizontal fold and
possibly more corner wear. |
50
- About Uncirculated |
|
A note can obtain
this grade due to a heavy and impairing
centerfold, two moderate vertical folds, or a
note with both a light horizontal and vertical
fold. Corners may now exhibit more folds and wear
can be obvious. |
45
- Choice Extremely Fine |
|
A note with two
to three clear vertical folds, one of which may
be horizontal, although not heavy in nature, but
heavier than seen on a 50 AU note. |
40
- Extremely Fine |
|
There are three
or more folds, one of which may be horizontal,
including heavier wear and corner folds. |
35
- Choice Very Fine |
|
Similar to the
IBNS grade VF-XF. This note looks
Extremely Fine, but it will have five to seven
light folds. |
30
- Very Fine |
|
This note will be
lightly circulated and may have light soiling.
There will typically be seven to ten folds, but
this is still a banknote with solid and quite
crispy paper. |
25
- Very Fine |
|
A note that shows
modest evidence of circulation as well as more
folds and/or soiling than a note graded 30. There
is heavier staining or toning, very heavy folds,
and the paper is now losing much of the body. |
20
- Very Fine |
|
The note is
moderately circulated with numerous folds, mild
soiling. There are no serious detractions but
there may be minor defects. A note that is
starting to show clear signs of circulation with
obvious and numerous folds, worn and folded
corners. |
15
- Fine |
|
This note may
look like a 20 Very Fine note, that will have
lost much of its body and is showing more signs
of circulation such as numerous folds, slight
splitting, heavier toning, and a general loss of
integrity of the paper quality. |
12
- Fine |
|
The evidence of
circulation is considerable with rounded corners,
minor margin splits, frayed edges and other
issues. The note must be whole with solid paper. |
10
- Very Good |
|
Nearly a Fine
note, a solid, whole note, that exhibits some
negative aspect keeping it from achieving a
higher grade, such as heavier staining, many
heavy folds, and an overall limp feel to the
note. |
8
- Very Good |
|
The note is
heavily circulated, with more tears, but is
intact. Some small pieces may be missing.
Soiling, light stains or splits are common for
this grade. The note is limp. |
6
- Good |
|
A fully limp note
that is very worn with heavy splits, fraying of
the margins and damage and may even be missing
some corner pieces. A center hole may be evident
in this grade due to its heavy folding and
circulation. |
4
- Good |
|
A very heavily
circulated note with numerous problems. It is
totally limp with impaired visual appeal.
Multiple minor pieces will be missing, and
splitting will be extensive and extend into the
design. The note is completely limp and have
negative eye appeal but will still be
identifiable. |
2
- Poor |
|
Notes under this
grade are generally not collectible unless the
note is very rare. The note is hard to identify
due to extensive circulation and abuse and may be
missing half or more than a half of its body.
Serves as a filler. |
|