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Superb Gem Crisp Uncirculated (or Superb Gem CU): A flawless note, visually
perfect in every way.
No folds, bends, rounded corners, or counting crinkles are permissible at this grade level, and the
centering must be superior for the issue. The paper will be crisp and original, the embossing (where
applicable) must be bold, and all four corners must also be perfectly sharp. The overall aesthetic quality
at this grade level should be outstanding for the issue. Notes in this grade are rare, even in the most
Gem Crisp Uncirculated (or Gem CU): A crisp, perfectly centered example that
has perhaps one tiny
flaw that limits the grade-perhaps a microscopically frayed corner, or an almost imperceptible crinkle in
the paper. The note must be absolutely original, with bold embossing and bright colors. Any flaw that is
readily evident, such as a noticeable counting crinkle or slightly imperfect centering, will prevent a note
from receiving a Gem CU grade. Notes in this and any Uncirculated grade will, of course, have absolutely
no folds or bends.
Choice-Gem Crisp Uncirculated (or Choice-Gem CU): This is an intermediate
grade that is reserved
for notes that are nicer than a typical Choice CU note, but have one or more minor flaws that just barely
prevent a Gem CU rating. Such a note might have perfect centering and otherwise flawless paper quality,
but a minor counting crinkle would prevent a Gem grade. An otherwise flawless note with slightly imperfect
centering might also fall into this category. Notes in this and any Uncirculated grade will, of course,
have absolutely no folds or bends.
Choice Crisp Uncirculated (or Choice CU): A note in this grade will be a
strictly Uncirculated note,
with no folds or bends present even under close scrutiny. The paper quality and eye appeal will be above
average for the issue, and any flaws present will be minor in nature. Imperfect centering is acceptable at
this grade level, although any note with severe centering problems cannot attain this grade. A counting
crinkle or two is acceptable, as well as a microscopically frayed corner or two. Any combination of these
or other problems would drop a note into a lower category. A Choice CU note should be a pleasing, original
example with no major distractions that are readily apparent.
Crisp Uncirculated (or CU): A note in this grade must be strictly
Uncirculated-with no folds, bends,
or wrinkles present, even when viewed very closely under a strong light. A bent corner tip may be acceptable
at this grade level if there are no other flaws, but only if the bend is within the margin and it does not
affect the design. If the bend is large or there is more than one, the note cannot grade CU. Such a note
may have centering problems, counting crinkles, or microscopically rounded corners, but the note must be
strictly free of folds or bends. A note that is otherwise Choice or Gem CU but has been processed or pressed
might fall into this category.
Choice Almost Uncirculated (or Choice AU): A note in this grade will be a
"just miss" for a Choice
CU grade or higher. It will have above average eye appeal and will be attractive for the issue, but a bent
corner or light vertical centerfold will keep it from an Uncirculated grade. Two light vertical bends are
acceptable for this grade, as long as the surface of the paper is not "broken." More than one light fold
or a heavy fold or crease will drop the note into a lower grade classification.
Almost Uncirculated (or AU): An AU note will have one or more light folds
that are not heavy in
nature or obtrusive to the overall appearance. Three light vertical bends would be acceptable for this
grade if they do not "break" the surface of the paper, but no more than two light folds may be present.
One heavy fold or crease may be present at this grade, but two heavy folds or creases will drop the note
to a lower grade level.
Extremely Fine (or XF): A note in this grade will be bright, fresh, crisp,
and attractive, but a
few light folds or bends may be present. The overall eye appeal will be above average, and only the slightest
soiling may be visible. A note in this grade might have a few light folds or several very minor bends, or a
couple of vertical creases may be present. A note with a horizontal fold and three vertical folds cannot
technically grade XF, although a very light horizontal bend that does not "break" the surface of the paper
might be acceptable at this grade level if the three vertical folds are not heavy and there are no other
apparent flaws. A typical XF note may have a couple of pinholes, but any larger holes would prevent a note
from reaching this grade level.
Very Fine (or VF): A VF note should have nearly full remaining crispness,
although several folds,
wrinkles, or other signs of circulation may be present. Mild soiling might be apparent, but it should not
be serious. No tears, stains, or other impairments should be readily apparent, and the note should still
have nice eye appeal. Several minor pinholes may be visible when the note is held to a light. The corners
may be slightly frayed or slightly rounded at this grade level, but the paper should retain nearly full
crispness and there should be no loss of color in the design.
Fine (or F): A note in this grade will resemble most notes that have spent
considerable time in
circulation. The piece will have lost some of its crispness, but the paper will still be solid. (A limp
note without any crispness will classify at a lower level.) The corners may be slightly frayed or rounded,
and the edges may also be frayed. Pinholes may be readily apparent, but none should be large or obtrusive.
A few minor edge splits are not uncommon in this grade, but they typically will be within the margin and
not affect the design. No major stains or tears may be present, although a stray pencil marking or light
teller stamp will not affect the grade at this level if it is not dark or obtrusive.
Very Good (or VG): At this grade classification, a note will be heavily worn
with slightly rounded
corners, frayed edges, or slightly rough margins. The paper will be intact, however, and no large pieces
may be missing. A few edge splits may be apparent, although they must not be severe. The note will be limp
or soiled from circulation, and some wallet staining may be visible. No major damage is acceptable at this
grade level, however, and any note that has a large hole, stain, tear, or missing piece must fall into a
lower grade category.
A brief comment about intermediate grades
Good (or G): A note in this grade will be heavily worn, soiled, torn, taped,
holed, or missing small
pieces from the design. It will still be roughly intact, and readily distinguishable by series and design
type. Damage or wear may be rather severe, but any note that is missing large portions of the design or is
barely attributable may fall into an even lower grade classification, such as Fair or Poor.
Intermediate grades such as XF-AU, VF-XF, Fine-VF, VG-Fine, or Good-VG are often used to indicate a note
that is nicer than the lower grade level, but just misses the higher classification. For example, a note
with three vertical folds and a horizontal fold cannot technically grade XF, but it might be much nicer
than a typical VF-an intermediate grade of VF-XF is then used in this instance. A plus sign (+) may also
be occasionally affixed to a grade, indicating that the note is a nice, problem-free note for the assigned
grade with claims to a higher classification.
Processed, washed, and pressed notes
It is an unfortunate aspect of our hobby that unscrupulous people will attempt to pass some things off as
something they are not. Methods to "improve" the look or grade of a note abound, and it is common to see
notes where any number of these methods have been attempted. The most common is to wash the note (usually
with soap, detergent, or bleach) and flatten it (often with an iron), and starch is even sometimes added
to stiffen the note and add crispness. While a beginning collector may be easily fooled by such a note
(and even experts occasionally miss one), enough practice will enable any collector to readily spot a
"doctored" note. A few people in the hobby still maintain that a processed note is an "improved" note, but
the portion of the hobby that views originality favorably has gradually overwhelmed this view, and processed
notes are usually traded at a discount and graded at a level or two lower than their apparent grade. A
processed note can usually be detected by fading or loss of color, especially where the note was once
folded. Folds can often be difficult to detect, but the evidence of a fold can never be completely removed.
Sometimes even the smell of a note is a dead giveaway-and sometimes it may be the only way to determine
if a particularly good job was done in processing a note. On an Uncirculated note, a lack of original
embossing is a telltale sign of a pressed note. Patience and attention to detail can often prevent hundreds
or even thousands of dollars worth of mistakes.
Damaged and repaired notes
Some common sense is necessary when grading damaged or repaired notes. A collector should research the
different methods of repairing a note, and be able to recognize these methods. Sometimes it is actually
possible to "improve" the appearance of a note by repairing or restoring the paper (particularly when a
tear is closed or a missing piece is restored), but the note still must be classified as damaged and
repaired, and special care should be taken to make sure any note does not have a subtle or imperceptible
repair. Some repairs are deceptive, and whether this deception is done intentionally or not a collector
can get "burned" on such a note. The assigning of a grade to a damaged or repaired note is a matter of
opinion in some sense, but common sense should dictate the final evaluation. A general rule to follow is
to consider at what level one would be indifferent to a damaged note as opposed to a problem-free note
in a lower grade. For example, if a collector would be equally content with a stained CU note or a
problem-free VF, then a fair classification of the stained CU note might be at the VF grade level. At
Heritage, we will give an overall grade to a note, and then describe the paper quality of the note and
the flaws that are present. For example, a note may be graded VG, but in the catalog description of the
note it might state that it has the paper quality of a VF but a corner tip has been torn off.
Some general comments about grading and value
Grading is, of course, an art, and not a science. While counting folds is relatively easy, determining eye
appeal and what a note in a certain grade should "look" like takes time, experience, patience, practice,
and a certain level of common sense. If a note looks really nice and might pass for AU but is technically
only an XF or XF-AU, it will often bring a price commensurate with an AU grade regardless of the technical
grade. Eye appeal is often more important than a technical grade in determining a note's value. This only
makes sense-most people would rather own an attractive, problem-free, well centered AU note with a vertical
fold down the center rather than a generally unattractive note that technically merits a CU grade. Approach
grading with common sense and knowledge about what merits a given grade, and have fun-which is, after all,
the most important aspect of collecting.