IBNS Grading Standards

GRADING

Grading is the most controversial component of paper money collecting. Small differences in 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 these grades are not used in every place and by everyone.

While the IBNS grading standards are widely used, third party grading companies have introduced their own grading systems. Collectors will find most banknote dealers still use the IBNS standards and most catalogues use the IBNS standards.

The grades and definitions set forth below cannot reconcile all the various systems and grading terminology variants. Rather, the attempt is made here to diminish the controversy with some common-sense grades and definitions that aim to give more precise meaning to the grading language of paper money and polymer banknotes.

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 and view both sides of the item. 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.

Ultraviolet light can show hidden aspects of a banknote. Among professional graders, it is a crucial tool used to identify stains and foreign substances that are not easily seen by the naked eye. It can also be used, with experience, to determine if a banknote has been washed, pressed, cleaned or repaired.

CLEANING, WASHING, AND PRESSING OF BANKNOTES

Cleaning, washing or pressing paper money is always 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 be completely eliminated and their tell-tale 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 will automatically reduce it at least one full grade.

Glue, tape, or pencil marks may sometimes be successfully removed. While such removal will leave a clean surface, it will improve the overall appearance of the note without concealing any of its defects. Under such circumstances, the overall look of the note may be improved but not the grade.

The Term"Uncirculated"

The word"Uncirculated" is used in this grading guide only as a qualitative measurement of the appearance of a note and is more properly known as"Uncirculated condition", as it is the condition that is being described, not stating the fact whether or not the banknote has been in circulation. Thus the term"About Uncirculated" (AU or aUNC) 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 in Uncirculated condition or it is not; there can be no degree of Uncirculated. Highlights or defects in colour, 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.