Grading disparity
TPRC
Posts: 3,789 ✭✭✭✭✭
I will start by saying I am not a paper money guy, and though I consider myself an expert, or near expert coin grader, my paper money grading skills leave much to be desired. But occasionally, I purchase paper money. I usually don't keep it, but I enjoy it for a while and sell it. Several months ago, I purchased 4 consecutive serial numbered 1963 $5 red seal star notes. They were represented to me as choice unc and I agreed. I sent them in to PCGS and they came back as 64PPQ, 58PPQ, 58PPQ and 58. I've been surprised by grades before but usually, upon receipt, I can at least see what the graders saw. However, when these came back, I still see 4 64s. So, I sent them to PMG under their cross over special and just got them back. 3 64EPQs and 1 58EPQ. I feel slightly vindicated but still don't see any difference in the notes.
Is this much variance in grades common in paper money? I have had a couple of coins go from 58 to 64 in my lifetime but this is odd and I think this inconsistency in grading paper money is more severe than with coins.
Tom
Comments
Pictures will help. Apparently PCGS saw something PMG did not. 64 to 58 sounds like a lot but if you are dealing with a single exclusion that is seen or unseen, that can be the difference.
I'm suspicious though, I've seen too many things missed in graded holders - spots, things of that nature, that would result in a grade drop as you see here.
I’ve seen a 58PPQ change to a 66PPQ, same note same grading company.
It’s a paid professional opinion by an expert(s). Sometimes it comes down to just a hint of a fold seen by one and not by another.
I read this from the OP, “I feel slightly vindicated but still don't see any difference in the notes.”
The notes didn’t change, just the opinion.
I do see your point, but I have never heard of a coin going from 58 to 66, even in an era of admitted and sometimes dramatic gradeflation (though, in fairness, there is the case of one of the famous 1804 sliver dollars which went from a choice xf to 62, I believe). It could just be a case of my ignorance of the grading standards for notes, and my need to better understand grading. Thanks for the comments.
Tom
Most reputable currency books do a fairly good job of giving grade guidelines. Not that it is the only means to grade, but does show and/or describe some of the guidelines to look for. Even then not ALL are visible and recognizable to the naked eye and the casual collector. Here's a general guide from Heritage:
https://currency.ha.com/tutorial/how-to-grade-currency.s
I've just had a real close look at the 58 and, to my eye, it is indistinguishable from the 3 64s. But I always thought they were all near gems.
I'm going to hang on to these and bring them to a show to ask some paper money guys what I am missing.
Tom
58PPQs without any folds are the eyebrow raised, cherry picking opportunity of this hobby.
When PCGS Currency was operating these 58PPQs baffled a lot of old timers
Have you seen this website?
https://realbanknotes.com/forums/valuations-and-grading/pcgs-grading-confusing-(shitty)-example/
No, but thank you much...
Tom
58’s have a fold and sometimes it’s literally just one that can be very hard to locate inside the holder. On the flip side, I have a slabbed 64 with a corner fold. Grading is tough and graders have tons of notes to grade, things get missed.
An AU58 coin has rub/wear on the high points that often results in noticeable breaks in the mint luster on the surface.
A currency note is paper and has no mint luster. The difference between a 58 and a 66 can be a minuscule corner fold that can be very hard to see without proper lighting and the experienced trained eyes of the examiner.