How to Get Money Graded: A Numismatic Insider’s Guide

Want to transform your paper money from mere currency into a prized collectible? Getting your money graded by a reputable third-party grading service is the golden ticket. This process involves submitting your banknotes to a team of expert graders who assess their condition, assign a numerical grade, and encapsulate them in a protective, tamper-evident holder. This authentication and grading significantly enhance the value and marketability of your valuable banknotes.

The Step-by-Step Process of Money Grading

Here’s a comprehensive breakdown of how to get your money graded, from initial preparation to receiving your encapsulated banknotes:

1. Research and Select a Grading Service: This is the most critical step. While several grading services exist, the most widely recognized and respected are Paper Money Guaranty (PMG) and Numismatic Guaranty Company (NGC). Both have established reputations for accuracy, consistency, and security. Consider factors like their grading scale, fees, turnaround times, and the type of banknotes they grade. Do your homework!
2. Evaluate Your Banknote: Before submitting, meticulously examine your banknote. Note any flaws, such as folds, tears, stains, fading, or edge damage. Understanding the condition will help you anticipate the grade you might receive. This self-assessment is essential for setting realistic expectations. You can consult grading guides and online resources to aid in this process.
3. Determine the Value of Your Banknote: Knowing the estimated value of your banknote is crucial for insurance purposes during shipping and for selecting the appropriate grading tier. Grading services offer different tiers based on declared value, with higher tiers providing more insurance coverage. Consult price guides, auction records, and dealers to get an accurate estimate.
4. Choose a Submission Tier: Grading services offer various submission tiers, each with different pricing and turnaround times. The faster the turnaround, the higher the fee. Select the tier that aligns with your budget and the urgency of your need. For example, if you need the note graded quickly for an upcoming auction, a faster (and more expensive) tier is the way to go.
5. Become a Member (If Required): Both PMG and NGC typically require a membership to submit directly. Memberships come with various benefits, including lower grading fees and access to submission forms. Weigh the cost of membership against the potential savings and benefits it provides.
6. Complete the Submission Form: Accurately fill out the submission form provided by the grading service. This form requires details about the banknote, including its denomination, series, serial number, and your desired grading tier. Double-check all information for accuracy to avoid delays or errors.
7. Package Your Banknote Securely: Proper packaging is paramount to prevent damage during transit. Place each banknote in a mylar sleeve (do NOT use PVC sleeves as they can damage the note over time). Then, sandwich the sleeved note between two pieces of sturdy cardboard. Finally, package the cardboard sandwich securely in a bubble mailer or box.
8. Ship Your Banknote to the Grading Service: Use a reputable shipping service with tracking and insurance. Declare the full value of the banknotes for insurance purposes. Keep a record of the tracking number and any other relevant shipping information. Consider requiring a signature upon delivery for added security.
9. Await Grading Results: The grading service will process your submission and assign a grade to each banknote. This process can take anywhere from a few weeks to several months, depending on the chosen tier and the grading service’s current workload. You can typically track the progress of your submission online.
10. Review Grading Results: Once the grading is complete, you’ll receive a notification of the results. Review the grades carefully. If you disagree with a grade, you may have the option to appeal, but this usually involves additional fees.
11. Receive Your Encapsulated Banknote: Your graded banknotes will be returned to you encapsulated in a secure, tamper-evident holder. This holder protects the banknote from damage and provides a clear display of the assigned grade.
12. Store Your Graded Banknote Properly: To preserve the condition of your graded banknotes, store them in a cool, dry place away from direct sunlight and extreme temperatures. Consider using archival-quality storage boxes or albums specifically designed for graded banknotes.

Frequently Asked Questions (FAQs) About Money Grading

Here are some frequently asked questions that will help you navigate the world of paper money grading:

1. What are the most reputable money grading services?

The two most reputable and widely recognized money grading services are Paper Money Guaranty (PMG) and Numismatic Guaranty Company (NGC). Both have established reputations for accuracy, consistency, and security.

2. Is it worth getting my money graded?

Whether or not it’s “worth it” depends on several factors, including the rarity, condition, and potential value of your banknote. Grading can significantly increase the value of rare or high-grade notes, making them more appealing to collectors. However, the cost of grading may not be justified for common or low-grade notes.

3. How much does it cost to get money graded?

Grading fees vary depending on the grading service, the submission tier you choose, and the declared value of your banknote. Expect to pay anywhere from $20 to $200 or more per note. Higher tiers offer faster turnaround times and greater insurance coverage, but also come with higher fees.

4. What is the grading scale used for paper money?

PMG and NGC primarily use a numerical grading scale from 1 to 70, with 70 being a perfect, flawless banknote. Notes can also receive designations such as “Choice Uncirculated” (CU) or “Gem Uncirculated” (Gem). In addition to the numerical grade, notes may also receive a “NET” designation if they have been altered or repaired.

5. What does “NET” mean on a graded banknote?

A “NET” designation indicates that the banknote has been altered or repaired in some way. This could include cleaning, pressing, or repairing tears or holes. A “NET” grade will significantly reduce the value of the note.

6. How long does it take to get money graded?

Turnaround times vary depending on the grading service, the submission tier, and their current workload. Expect to wait anywhere from a few weeks to several months. Expedited services are available for an additional fee.

7. Can I submit my money for grading myself?

Yes, you can submit your money for grading yourself, but you typically need to become a member of the grading service. Memberships come with various benefits, including lower grading fees and access to submission forms.

8. How do I package my money for submission?

Proper packaging is essential to prevent damage during transit. Place each banknote in a mylar sleeve, sandwich it between two pieces of sturdy cardboard, and package it securely in a bubble mailer or box. Use a reputable shipping service with tracking and insurance.

9. What if I disagree with the grade assigned to my money?

Both PMG and NGC offer an appeal process if you disagree with the grade assigned to your banknote. However, this usually involves additional fees and a review of the note by a senior grader.

10. Does grading guarantee the authenticity of my money?

Yes, grading services authenticate the banknotes before assigning a grade. This provides assurance that the banknote is genuine and not a counterfeit. This authentication is a major benefit of getting your money graded.

11. What is the difference between PMG and PCGS Currency?

While PCGS (Professional Coin Grading Service) is a reputable coin grading service, their paper money grading division, PCGS Currency, was acquired by PMG in 2009. So, the main player in paper money grading is now PMG.

12. How does grading affect the value of my money?

Grading can significantly affect the value of your money. Higher grades typically command higher prices, as collectors are willing to pay a premium for banknotes in excellent condition. Grading also provides assurance of authenticity and condition, making the note more marketable and desirable. It is vital to know that a lower grade than expected could decrease the value.

By following these steps and considering these FAQs, you’ll be well-equipped to navigate the world of money grading and unlock the true potential of your valuable banknotes. Happy collecting!