How Documents Are Graded by the PMG

(This is directly referencing the explanation of how the Paper Money Guaranty conducts their grading process; all credit goes to the Paper Money Guaranty.)

The grading process is a team effort, with a minimum of three professional grading experts examining every note. PMG's graders come from diverse backgrounds, though all were notes dealers at some time in their careers. In becoming familiar with market standards for grading, experience in the commercial sector is an essential ingredient. Conversely, PMG's full-time graders cannot be involved in the commercial buying and selling of notes. The need for full-time graders to be prohibited from buying and selling notes is a policy not adhered to by all grading services, but it's a firm rule at PMG.

Each note is examined by one grader at a time, and he enters his grade (using the Sheldon numerical scale from one to 70, an industry standard) into the system. The grading scale utilized by PMG is the one universally accepted within the numismatic community. The following table lists the adjectival and numeric grades:

• CU 70: Seventy Gem Uncirculated
• CU 67–69: Superb Gem Uncirculated
• CU 65–66: Gem Uncirculated
• CU 63–64: Choice Uncirculated
• CU 60–62: Uncirculated
• AU 50,53,55,58: About Uncirculated
• XF 40,45: Extremely Fine
• VF 20,25,30,35: Very Fine
• F 12,15: Fine
• VG 8,10: Very Good
• G 4,6: Good
• AG 3: About Good
• FR 2: Fair
• PR 1: Poor

Once the first grader has viewed all the notes in a particular box, that box is then routed to the next grader and the process repeated. Only after three or more graders have examined each note is its final grade determined. Occasionally the graders may confer with one another on a particular note. When this happens, a consensus is ultimately reached which reflects their collective experience as note experts.

Some notes fail to make the grade, so to speak. For example, notes which have a corner missing, are stained or been damaged due to most any adverse occurrence after leaving the BEP will be net graded. This means that instead of no grading it, PMG will holder and authenticate it as a Net Grade. PMG will specifically state the reason(s) any note is net graded. The PMG guarantee is not valid on any net graded note.