Banknote collecting or Notaphily is a rapidly growing area of numismatics Although not as widespread as coin and stamp collecting, the hobby is increasingly expanding. Prior to the 1990s, currency collecting was a relatively small adjunct to coin collecting, but the practice of currency auctions, combined with larger public awareness of paper money have caused a boom in interest and values of rare banknotes.
Collecting Australian banknotes is a fun and rewarding as a hobby or investment. Like all investments one has to know about what they are purchasing as there is a lot of trickery in currency collecting, ie; washed, pressed or tampered with in some way in which decreases its worth dramatically. Greg McDonalds Pocket Guide to Australian coins and The Renniks Coin Guide are really good Instruments to understand Grading Banknotes. Five characteristics are studied to accurately determine the grade of a banknote. They are the state of cleanliness, the amount of folding, the condition of the surface, the condition of the edges and the severity and number of any punctures or pinholes on the banknote. A points system is used where each characteristic is added out of 20 - the maximum result for an perfectly pristine banknote being 100. The grading points are as follows:
Definition of Banknote Grading
Uncirculated (UNC)A perfectly preserved banknote, never mishandled by the issuing authority, a bank teller, the public or a collector. Paper is clean and firm, without discoloration, no folds or creases, Corners are sharp and square. An uncirculated note will have its original, natural sheen.
About uncirculated (AU)A virtually perfect banknote, with some minor handling. May show very slight evidence of bank counting folds at a corner or one light fold through the center, but not both. An AU note can not be creased, a crease being a hard fold which has usually "broken" the surface of the note. Paper is clean and bright with original sheen. Corners are not rounded.
Extremely Fine (EF)Avery attractive banknote, with light handling. May have a maximum of three light folds or one strong crease. Paper is clean and bright with original sheen. Corners may show only the slightest evidence of rounding. There may also be the slightest sign of wear where a fold meets the edge.
Very Fine (VF) An attractive banknote, although it shows more evidence of handling and wear. It may have several folds both vertically and horizontally. The paper may have minimal dirt, or colour smudging. The note itself is still relatively crisp and floppy. There are no tears into the border area, although the edges do show slight wear. Corners also show wear but not excessive rounding.
Fine (F) A banknote which shows considerable circulation, with many folds, creases and wrinkling. The paper is not excessively dirty but may have some softness. Edges may show much handling, with minor tears in the border area. Tears may not extend into the design. There will be no center hole because of excessive folding. Colours are clear but not very bright. A staple hole or two would not be considered unusual wear in a Fine banknote. Overall appearance is still on the desirable side.
Very Good (VG)A well used banknote, abused but still intact. Corners may have a fair amount of wear and rounding, tiny nicks, tears may extend into the design, some discoloration may be present, stains may be present and a small hole may sometimes be seen at center from excessive folding. Staple holes and pinholes are usually present, and the banknote is quite limp, but no pieces of the note can be missing. A note in VG condition may still have an overall not unattractive appearance.
Good (G)A well worn and heavily used banknote. Normal damage from prolonged circulation will include strong multiple folds and creases, stains, pinholes and/or staple holes, dirt, discoloration, edge tears, center hole, rounded corners and an overall unattractive appearance. No large pieces of the banknote may be missing. Graffiti is commonly seen on notes in G condition.
Fair (FR) A totally limp, dirty and very well used banknote. Larger pieces may be half torn off or missing besides the defects mentioned under the Good category. Tears will be larger, obscured portions of the banknote will be bigger.
Poor (PR) A "Rag" with severe damage because of wear, staining, pieces missing, graffiti, larger holes. May have tape holding pieces of the note together. Trimming may have taken place to remove rough edges. A Poor banknote is desirable only as a "filler" or when such a banknote is the only one known of that particular issue
Grading Guide
Uncirculated (UNC)
100%
Extremely Fine (EF)
90%
Very Fine (VF)
75%
Fine (F)
55%
Very Good (VG)
30%
Good (G)
20%
Cleanliness
as printed, clean and bright
20
slight soiling
15
Considerable soiling and/or bankers marks
10
Very dirty, legibility is mostly reduced
0
Folds
As it was printed, flat and unfolded
20
One or two folds with a very faint crease
15
Several prominent folds
10
Many folds and heavy creasing
0
Surface
As it was printed - crisp uncirculated with no damage
20
Slight, just detectable markings or damage
15
detectable damage in several places
10
Extensive damage
0
Edges
As it was printed, perfect, straight and even
20
Slightly rough or with very minor indents
15
Considerable indents and/or with tears in the margins
10
Badly damaged edges and/or tears protruding into the design
