PMG and PCGS?

You might be asking why the price of a graded banknote is higher than a normal UNC note?

What are graded banknotes?

The condition of a banknote  or coin is of great importance in the collector’s world; it will influence the value of the item. With this in mind, the term “good condition” will differentiate from “poor condition”. A banknote/coin is graded by a professional team who closely examines to determine and preserve the condition of the note/coin. The higher the grade, the higher the value.

Banknote experts are checking the notes/coins precisely. They are trained to certify the condition and authenticity of a note/coin and grade them accordingly on a scale from 8 to 70.  Many grading companies exist, however the two most prominently known and trusted are PMG and PCGS.

What is PMG?

PMG stands for “Paper Money Guaranty.” PMG is a well-known grading company that uses a Paper Money Grading Scale (a 70-point numerical scale, with 70 or “70 GEM UNC” being the highest possible grade). Grades below 4 are not considered valuable as collectible notes, unless it is a one-of-a-kind banknote. The Grading Scale replaces condition’s terms such as, "Fine", "Good", "Very Good", etc. Aside from 70-point numerical grading scale, PMG designates banknotes into 3 categories. These are EPQ, PMG Star and NET. EPQ “Exceptional Paper Quality” refers to the notes graded 20 and above which are qualified to be examined as EPQ, provided that the banknotes illustrate normal wear and tear. PMG Star designation is for those banknotes which have very strong characteristics on its color, designs, ink etc. The third category is the NET, which means that the note has major problems but can still be genuine. Most of the information can be found on their website, pmgnotes.com.

What is PCGS?

“Professional Coin Grading Service” – One of the best companies who helps collectors to determine if coins are rare and authentic and avoid counterfeited and falsified items. According to their website https://www.pcgs.com/ Since 1986, PCGS has been the industry standard for the authentication and grading of rare coins. Coin grading and authentication emerged as a solution to rampant counterfeiting and coin doctoring in the collectible coin industry.

Grading Preservation

Banknotes and coins graded based on the 70-pointing scale are then preserved so that the condition remains unaltered and protected. The most commonly used practice is to enclose within a semi plastic lid or case to protect and preserve its quality and thus it's value. Removal of the plastic cover will void the grade and collector's value. This serves to protect the credibility and integrity of the grading process. On the other hand, coins are being examined by the experts to validate the coins if rare and authentic. These companies really give assurance and peace of mind to every collector.