How to grade a banknote?

Hello, I hope you are doing well.

Numista has a very helpful post on 'How to grade a coin'. However, I haven't found anything similar for a banknote. Would it be possible to create such post? or at least, to share that info?

Thanks,
Alex

Here's some guidance on grading from another site.

https://www.pmgnotes.com/paper-money-grading/grading-scale/

I made this video featured on Notaphilic Culture a couple years ago. The best way to get the hang of it is to take out a bundle (X100) of banknotes & then try to sort them yourselves according to:
UNC (60-68): never circulated (the higher the # the more perfectly centred but quite honestly- there's very little to see difference once you get up to 67+)
AU (50-58): a slight bend or two (no hard fold)
EF (40-45): A hard fold but not a crease and light evidence of circulation, a corner may be rounded and edges start to show softness
VF (20-35): 3 creases or fold but otherwise crisp (25 to 35), paper will seem less firm and almost Fine for VF20-25 but seem more crisp, clean & EF like with the higher # like 30-35. Typically this is the most common grade of a decent looking note that's had moderate circulation. Moderate circulation lessens the brightness of the note. Edges/corners become soft, wrinkles and crease appear.
F (12-18): Much more noticeable wear with many folds & creases but the note still looks pretty decent. Design may start to wear off on one or 2 of the major creases but not too many distractions. Some soiling starts at this grade level and the banknote has lost most of its crispness & is dull in colour. Some crispness in a F-18 (or higher numbers) Problems, like edge tears, start to appear on the notes sides/corners
VG (5-9): This note is limp and most of the problems of the Fine note are accentuated with considerable soiling. Tears & defects
G (1-4): This note will have numerous tears & defects

Note: I have to tell you that I used to do this a lot as a teen-twenties and it probably took me 2-3 decades to start to get more accurate (where other collectors would agree with my assessments). It's very easy to overlook tiny problems so it took a lot of practice & it is always great practice to access notes with great/strong lighting (hold the note with side lighting and then carefully tilt it around until you've inspected it many ways), a magnifying glass & (if possible) with others present so they can detect flaws in your assessments (ones you may have overlooked). Enjoy!

I always found it hard to grade a banknote you just have to look at a note funny and it loses a grade or two

https://en.numista.com/forum/topic104419.html

https://www.theibns.org/joomla/index.php?option=com_content&view=article&id=4&Itemid=25

Verweis : "Serial_Number_8"​I made this video featured on Notaphilic Culture a couple years ago. The best way to get the hang of it is to take out a bundle (X100) of banknotes & then try to sort them yourselves according to:
​UNC (60-68): never circulated (the higher the # the more perfectly centred but quite honestly- there's very little to see difference once you get up to 67+)
​AU (50-58): a slight bend or two (no hard fold)
​EF (40-45): A hard fold but not a crease and light evidence of circulation, a corner may be rounded and edges start to show softness
​VF (20-35): 3 creases or fold but otherwise crisp (25 to 35), paper will seem less firm and almost Fine for VF20-25 but seem more crisp, clean & EF like with the higher # like 30-35. Typically this is the most common grade of a decent looking note that's had moderate circulation. Moderate circulation lessens the brightness of the note. Edges/corners become soft, wrinkles and crease appear.
​F (12-18): Much more noticeable wear with many folds & creases but the note still looks pretty decent. Design may start to wear off on one or 2 of the major creases but not too many distractions. Some soiling starts at this grade level and the banknote has lost most of its crispness & is dull in colour. Some crispness in a F-18 (or higher numbers) Problems, like edge tears, start to appear on the notes sides/corners
​VG (5-9): This note is limp and most of the problems of the Fine note are accentuated with considerable soiling. Tears & defects
​G (1-4): This note will have numerous tears & defects
​
​Note: I have to tell you that I used to do this a lot as a teen-twenties and it probably took me 2-3 decades to start to get more accurate (where other collectors would agree with my assessments). It's very easy to overlook tiny problems so it took a lot of practice & it is always great practice to access notes with great/strong lighting (hold the note with side lighting and then carefully tilt it around until you've inspected it many ways), a magnifying glass & (if possible) with others present so they can detect flaws in your assessments (ones you may have overlooked). Enjoy!

​Good educational video.👍

Just asking would a note be classed as “uncirculated” if it came out of a ATM on launch day?

"Just asking would a note be classed as “uncirculated” if it came out of a ATM on launch day?"

-thanks re: video.

This is my opinion (& grading anything is subjective) & you will find conservative graders and very liberal ones: but I think the answer would start with "depends," if the note has not been scratched by the ATM machine than it probably is UNC to some degree (as it has not been circulated. Unfortunately, many of today's polymer banknotes have the foil windows which become scratched as they're loaded or dispensed. So these scratched notes loose their PPQ (Original Or EPQ) since the polymer has been altered. It could still be Unc 60-64 but with scratches (& if poorly centred) the # drops (from a TPG). However, it might not have been barely handled and might be dispensed without problems & could be just as nice as when it was printed.

For those interested in banknotes from around the world, you should know about the International Banknote Society. The grading standards are shown here:

https://www.theibns.org/joomla/index.php?option=com_content&view=article&id=4&Itemid=25

and if you are serious about collecting paper money, in my opinion it is worth joining.

Thanks…

I use mainly the IBNS link (by cazwin), the pictures are very helpful.

Here's another site where you can see all definitions in one single page (screen),
plus a coloured table with additional clarifications to what the terms mean that
facilitate your search for specific features.
https://www.banknotes.com/grading.htm

Rg

Some tips and grading guide using IBNS terms with some pictures to illustrate grades.
https://www.irishpapermoney.com/grading-banknotes/irish-papermoney-grading-banknotes.html

Just bumping this thread in case anyone wants to review.

BUMP