Even when grading
to a set standard, grading a banknote can be very subjective. Factors
such as lighting, tired eyes, being hurried, etc., can produce a small
error that, depending on the rarity of the banknote, may result in large
price differences. The standard commonly used in North America is that
used by the International Bank Note Society and can be found
here.
When judging the
grade of a banknote that you are considering for purchase from a seller
you are unfamiliar with, it is best to take the advertised grade of a
banknote as a ballpark estimate and look at it for yourself. Many times
there will be banknotes that are not graded and you are left to judge
for yourself. Either way, you can assess the grade of the banknote and
make an informed decision if you know the grading system.
Attempting to judge
the grade of a banknote from a photo, or on a computer, is very
difficult under the best of circumstances. One must assume that the
seller has not manipulated the banknote and that the picture is of the
actual banknote offered for sale. If you have any questions, it is best
to ask the seller about your concerns before committing to buy.
In grading your
personal banknotes, you should always do so under the best possible
conditions, and follow the guidelines as close as possible.
There are certain
conditions inherent to the production of some banknotes that are not
usually taken in consideration as a defect when grading. For instance,
some modern notes will have counting marks or a crimp at the ends of
some of the security foils. Older banknotes from some countries have
staple holes that occur at the printing offices when they bundle them
together. Certain issues of French printed banknotes will have a wave to
the paper that is almost unavoidable. These may be, but are not always,
identified along with the advertised grade.
There are also
companies that will grade a banknote (and coins) for a fee. These
companies charge a premium for their services and, unless the seller
decides to absorb the cost, their charge is always part of the resell of
the banknote. These companies are affectionately known as "Slabbers", a
term representative of the 'Slab' the banknote is placed into, a sealed
plastic holder with the grade and the company name. They are also called
Third Party Graders, or TPG's. While one may feel assured of an official
grade from a reputable Third Party Grading company, they are known to
make mistakes as well. I am aware of mistakes from a TPG company such as
an obvious wrong grade, wrong banknote label on the holder, and even an
obvious counterfeit banknote uncaught by the obviously inexperienced
employee.
In the end, only
you can be the true judge of the banknote for yourself.