Grading Australian Decimal Paper Banknotes

Hi Ozzie,

The first and most significant differentiation is folds.
1.Folds include, centre folds, teller flick and multiple folds. In combination with folds is the intensity of the fold, has it left a sharp crease, a bend, a wave, etc.
All old folds, creases will show up at the right angle within good light. Bounce the light of the note and creases will reveal themselves.
3. Paper crispness, does it hang, flop, still feel lively?
4. Smell, does it smell like money or has it been washed and pressed?
5. Flatness i.e. has it been book pressed. The centre thread may be proud and the note fibres will be pushed down (Had the guts squashed out of it)Sometimes when pressed the centre thread is clearly seen by the naked eye and yet a natural note, the centre thread is fairly well hidden within the walls of the note.
6. Margins ( straight, rips, tears, nicks)
7. Corners i.e. sharp, rounded, torn off.
8. Pin holes, staple holes (effect value but not so much grade)Any hole should show up when you hold the note up to the light and look at the note from underneath.
9. Soiling, stains, ink, dirt, general grub, writing, smudged ink.

I am sure there are more experienced collectors who will add to this.

Now quoting from a reputable reference:

Fine (F) A well circulated note showing many folds and creases or wrinkling, but not excessively dirty. Colours clear.

Very Fine (VF) A circulated note showing folds and some signs of wear. Paper reasonable clean and crisp.

Extremely Fine (EF) A pleasant looking note with evidence of light handling, may have up to three light vertical folds or one heavy vertical fold. May include slight edge wear, corner rounding or pin holes. Pin holes should be noted in any description of the note, pin holes do not change the grade of a note although they do affect the value and appearance of the note.

About Uncirculated (aUnc) An almost perfect note except for handling marks and very minor imperfections. may have one very light bankers fold and tellers corner counting flicks.

Uncirculated (Unc) A perfect note in brand new flat condition. Paper crisp with original natural sheen without discolouration.

There is no such thing as a Brilliant Uncirculated or a Gem uncirculated note in my opinion. If you read the description of Unc it says it is perfect. In my experience this is the grade that people have tried to stretch far beyond its definition. Perfect means perfect and nothing else should suffice.

Every grade under Unc is constantly being stretched by the obvious advantage of lifting a note to a higher grade. The difference in Star Notes is thousands of dollars. Butchered grading standards present an ongoing massive challenge to the integrity of the hobby and investment.

Back to your question.. I am not a dealer but the rule applies to everyone who collects and deals. Do you buy one grade lower and sell one grade higher and if so, by what justification?
The differentiation is not possible by pictures.
Note grading is an art and a science and therefor open to bias and misrepresentation. Nevertheless, if the base rules/tests are applied such as provided above, a system can and does exist (but not without problems) Regards Ken