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1.9. How do you grade the condition of paper money?

The condition of a note is critical to its value. Thus, proper grading is important. Here is a general guideline. Note that many dealers have slightly different grading systems, especially with various sub-grades of uncirculated. There's no official system of grading, unfortunately. But these are pretty much universally accepted . . .

Crisp Uncirculated, UNC or CU:

This means absolutely not the slightest sign of any handling or wear or folding or anything. Some people use additional grades to distinguish qualities such as perfect centering or other printing characteristics.

Almost Uncirculated (or About Uncirculated), AU:

This means there is a slightly detectable imperfection such as a counting fold on one corner or slightest fold in the center (nothing which breaks the surface of the paper).

Extremely Fine, EF or XF:

Generally three light folds or one strong fold which breaks the surface. There may be slight rounding at the corners.

Very Fine, VF:

May have several folds although the note is still crisp and has a minimum of dirt.

Fine, F:

A circulated note with folds and creases, but no tears which extend into the printing. This is your average in-the-wallet note.

Very Good, VG:

Tears and small holes can be present. The note is not crisp at all. The is your lower quality in-the-wallet note. Lots of people on the 'net don't realize that a note in "very good" condition is really pretty lousy.

Good, G:

Small pieces missing, graffiti. A worn out note.

Fair:

Major tears, etc. A badly worn out note.

Poor:

Even worse.

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