PMG Grading Guidelines

When it comes to collecting and investing in paper money, the condition of the note plays a crucial role in determining its value and desirability among collectors and investors. The Paper Money Guaranty, or PMG, is one of the most trusted third-party grading services in the industry. They use a 70-point numerical grading scale to assess the condition of banknotes, with 70 being the highest grade possible. In this article, we will provide an overview of PMG grading guidelines.

The PMG Grading Scale

The PMG grading scale is a 70-point numerical system that assesses the condition and quality of paper money. The higher the grade, the better the condition of the note. Here are the different grades and their corresponding descriptions:

Uncirculated

The Uncirculated (UNC) category represents banknotes that are in pristine condition, showing no signs of wear or handling. These notes are often referred to as "crisp" or "mint" condition. The PMG grading scale for Uncirculated banknotes ranges from 70 to 60. To be graded 65 or higher, a note must qualify for EPQ designation, explained in the PMG designations section below. Let's take a closer look at each grade:

• 70 Superb Gem Unc: A banknote that is perfectly preserved, with sharp corners, full original color, and not a single mark or blemish.

• 69 Superb Gem Unc: A nearly perfect banknote, with only the tiniest imperfections visible under magnification.

• 68 Superb Gem Unc: A banknote that is still exceptional, with very minor signs of handling visible under magnification. The margins and registrations may be slightly off-center.

• 67 Superb Gem Unc: A banknote that is still of superb quality, with minor signs of handling visible under magnification. The margins and registrations are above average.

• 66 Gem Uncirculated: A banknote that is of gem quality, with more signs of handling than the above grade. The margins and registrations are above average.

• 65 Gem Uncirculated: A banknote that is of gem quality, with minor signs of handling leading to one or two minor distractions. The centering is above average.

• 64 Choice Uncirculated: A banknote that is of choice condition with no folds in the design but some handling is evident. The centering might be off on one or two sides.

• 63 Choice Uncirculated: A banknote that is of choice condition with no folds in the design but may have several flaws. The centering may be imperfect.

• 62 Uncirculated: A banknote that has no folds in the design, but may have minor-to-moderate handling and/or corner tip issues. The margins may touch or enter into the design.

• 61 Uncirculated: A banknote that has no folds in the design, but may have counting marks, smudges, or other signs of handling. The margins may come into the design.

• 60 Uncirculated: A banknote that has no folds in the design with problems, such as toned paper, a small stain, or fading. The note will also have handling issues.

It is important to note that an uncirculated or UNC banknote has no fold in the design. Even though a banknote may have minor imperfections, it can still be considered Uncirculated as long as it meets the overall criteria for that grade. The higher the grade, the more valuable the banknote is likely to be.

About Uncirculated

The About Uncirculated (AU) category represents banknotes that have seen very minimal circulation but may have some slight signs of handling or wear. These notes are often referred to as "lightly circulated" or "almost uncirculated." The PMG grading scale for About Uncirculated banknotes ranges from 58 to 50. Let's take a closer look at each grade:

• 58 Choice About Unc: A banknote that is in a very nice condition but has a single fold that crosses into the design. Banknotes of this grade, if not for such a single fold which could be a minor one, are very attractive and might even appear more beautiful than some uncirculated banknotes.

• 55 About Uncirculated: A banknote that is in a very nice condition with one fold or two to three corner folds through the design.

• 53 About Uncirculated: A banknote that is in nice condition but has two vertical folds or a single horizontal fold.

• 50 About Uncirculated: A banknote that is in nice condition with two heavier folds or light horizontal and vertical folds.

Banknotes in the AU category are often sought after by collectors who want notes that have seen some circulation but are still in relatively nice condition. These notes can offer a balance between rarity and affordability.

Extra Fine

The Extra Fine (EF or XF) grade is assigned to banknotes that exhibit minimal signs of wear and handling. These notes may have a few folds or creases, but they should still retain their original crispness. The PMG grading scale for Extra Fine banknotes is divided into two sub-grades: 45 and 40. Let's take a look at each grade:

• 45 Choice Extra Fine: A banknote that is still in nice condition, but has two to three heavy folds. One of the folds may be a horizontal fold.

• 40 Extra Fine: A banknote that is still in nice condition, but has two or three heavy folds. One of the folds may be a horizontal fold.

Banknotes in EF or XF with their relatively nice condition are still very desirable by collectors, especially for rare banknotes which are hard to come by in higher grades.

Very Fine

Notes in the Very Fine (VF) grade will show more signs of wear compared to the Extra Fine grade. However, they will still retain a good amount of their original crispness and detail. The corners and edges may show some rounding, and there may be a few light folds or creases. The PMG grading scale for Very Fine banknotes is divided into four sub-grades: 35, 30, 25, and 20. Let's take a look at each grade:

• 35 Choice Very Fine: A banknote graded as 35 Choice Very Fine is still in great condition, and is usually called "VF-XF". Such banknotes have the appearance of an Extra Fine note, sometimes even better, but will have four to seven light folds.

• 30 Very Fine: A banknote that has been lightly circulated and has seven to ten folds. The banknote may have some soiling and a slight loss of crispness.

• 25 Very Fine: A banknote that has been moderately circulated and has more folds and/or soiling than the above grade. There will be a noticeable loss of crispness.

• 20 Very Fine: A banknote that has been moderately circulated and has numerous folds and/or soiling. Such banknotes would have minor defects and significant loss of crispness, but no serious detractions.

The VF grade encompasses a range of banknotes that show moderate signs of circulation. For rare banknotes, 35 Choice Very Fine and 30 Very Fine banknotes are still highly sought after. For very rare banknotes, 25 Very Fine and 20 Very Fine are also very desirable.

Fine

The Fine (F) grade is assigned to banknotes that have seen a significant amount of circulation. These notes will have multiple folds, creases, and signs of wear. However, they should still be intact and retain their overall design and legibility. The PMG grading scale for Fine banknotes is divided into two sub-grades: 15 and 12. Let's take a look at each grade:

• 15 Choice Fine: A banknote that may look like a very fine banknote, but does not warrant a higher grade because it has too many folds or too much circulation. Such banknotes would usually have significant signs of wear and considerable loss of crispness.

• 12 Fine: A banknote that is considerably circulated with rounded corners, margin splits, and other issues. Such banknotes will have more pronounced signs of wear compared to the previous grades. The colors will be noticeably faded, and the banknote will have a significant loss of crispness, but the banknote must be whole with solid paper.

Banknotes in the F grade category may not be as eye-pleasing as the higher grades. However, for some rare banknotes, even banknotes in such grade should not be passed upon.

Very Good

The Very Good (VG) grade is assigned to banknotes that have been heavily circulated and show significant signs of wear. These notes may have multiple folds, creases, tears, and stains. The PMG grading scale for Very Good banknotes is divided into two sub-grades: 10 and 8. Let's take a look at each grade:

• 10 Very Good: A banknote that with lots of circulation and substantial signs of wear and use. Such banknotes are too limp and have several minor problems, but the whole note is very present.

• 8 Very Good: A banknote that is heavily circulated but is still intact. Such banknotes are limp and usually have soiling, light stains, or splits. The banknote may be missing some small pieces.

Despite being at the lower end of the grading scale, VG banknotes should still be intact and legible.

Good

The Good (G) grade is assigned to banknotes that have been heavily circulated and show extensive signs of wear. These notes may have multiple folds, creases, tears, stains, and other damage. The PMG grading scale for Good banknotes is divided into two sub-grades: 6 and 4. Let's take a look at each grade:

• 6 Good: A banknote that is heavily circulated with serious splits, fraying of the margins, and damage.

• 4 Good: A banknote that is very heavily circulated. The banknote would have numerous problems and would usually be seen with missing pieces.

While the overall design and legibility of the G banknote may be affected, the banknote should still be recognizable.

PMG Designations

In addition to knowing the grading scale, additional designations are also used to describe the banknotes. The three PMG designations currently used are:

• EPQ: As mentioned above, to be graded 65 or higher, a note must qualify for EPQ designation. In addition, banknotes of grades 20 to 64, may also qualify for EPQ designation. Banknotes with EPQ designation are completely original and have not been processed physically, chemically or materially.

• PMG Star: Banknotes that qualify for EPQ designation, may also qualify for Star designation. Banknotes with Star designation are banknotes with exceptional eye appeal, which is very subjective. PMG began using Star designations only in June 2014, so banknotes graded earlier would not have such designation.

• NET: Banknotes that are designated with NET have more severe problems than banknotes of the same grading scale. The severe problems are listed on the labels.

Conclusion

The 70-point grading scale used by PMG provides collectors and investors with a standardized system to assess the condition of banknotes. Each grade represents a different level of wear and circulation, allowing collectors to make informed decisions about their collections. Whether you're a seasoned collector or just starting, having a good understanding of the grading scale will enhance your collecting experience.