Major Differences Between Grading Houses....

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Hi,

Im new to this forum.  Ive noticed a huge discrepancy when viewing Canadian Bills in certain American holders.  Specifically PCGS.  I know to buy the note not the holder.  But I cant help but wonder why there is a large amount of notes that are actually over graded.  Anybody have any idea why its so rampant?

Thanks!

Welcome to the forum!  There have been many threads discussing this topic.  There is a whole category devoted to it so it might be worth taking a look.

Welcome to the forum!  There have been many threads discussing this topic.  There is a whole category devoted to it so it might be worth taking a look.

Thanks for the heads up!  I need to find the search function. 

Ive noticed a huge discrepancy when viewing Canadian Bills in certain American holders.

- it's the same with coins (& they have whole sections on other forums discussing the same issues).  Coin collectors are always grumbling (& asking others what they think the grade should be).  Graders are subjective.  They're just people who are very subjective trying to be objective (& others who perhaps have more liberal standards or a 'rough day?')  I don't know but the longer you've been immersed in this hobby the more you see pretty dramatic discrepancies.  But then again- I think a lot of them do get it right (I haven't just seen PCGS over grade but PMG too).  And the American certifiers grade a lot more notes so there's bound to be more examples of poorly graded banknotes.   

I went to a RCNA workshop on Grading banknotes put on by BCS in 2018.  You'd think it was easy grading a note -but it isn't.    At least that's what I took away from the workshop.  It's taken me years to develop a more critical (keen eye) to analyze a note properly. 

- it's the same with coins (& they have whole sections on other forums discussing the same issues).  Coin collectors are always grumbling (& asking others what they think the grade should be).  Graders are subjective.  They're just people who are very subjective trying to be objective (& others who perhaps have more liberal standards or a 'rough day?')  I don't know but the longer you've been immersed in this hobby the more you see pretty dramatic discrepancies.  But then again- I think a lot of them do get it right (I haven't just seen PCGS over grade but PMG too).  And the American certifiers grade a lot more notes so there's bound to be more examples of poorly graded banknotes.   

I went to a RCNA workshop on Grading banknotes put on by BCS in 2018.  You'd think it was easy grading a note -but it isn't.    At least that's what I took away from the workshop.  It's taken me years to develop a more critical (keen eye) to analyze a note properly. 

That must have been an interesting workshop.  I would be interested if they ever held another one.  Im seeing all kinds of weird stuff like Off Center, Dirt Smudges etc getting Gem 65 which should have above average centering.   I cant bring myself to pay Gem 65 prices for a bill thats closer to CH UNC.  Buy the bill not the holder!

Yes, there is and always has been a wide "spread" in the grading standards and criteria used by the numerous TPG companies. In my opinion, sooner or later, one company will become dominant around the world just as the English language has become dominant around the world. Based on the number of submissions, and the public acceptance, that it receives from all around the world I suspect that that company will be PMG. However, nothing is certain in the world of TPG, to wit the several name changes that PCGS Currency has gone through (it's now called Legacy Currency) and the total disappearance of some other TPG companies.

I suspect that that company will be PMG.

Much to the dismay of many Canadian collectors!

Although I don't necessarily agree with their grading standards, I just sent a bunch of notes to get graded by PMG since I feel that they will have the greatest marketability in the future.

Although I don't necessarily agree with their grading standards, I just sent a bunch of notes to get graded by PMG since I feel that they will have the greatest marketability in the future.

You've certainly hit the nail on the head there! Like gold, a PMG graded note possesses instant recognition and acceptability around the world. Moreover, the major auction houses (Heritage, Spink, DNW, etc.) are promoting their services. I too dislike their looser grading standards and criteria but that's entirely because I grew up with the "old school" grading of the 1970's when even a hint of a counting flick on an otherwise original untouched note would downgrade it into the About Unc category. To wit, the publishers of the Charlton Catalogue have relaxed their previously ultra-rigid grading standards and criteria in recent years. Because of the (current) dominance of PMG in the marketplace it seems likely to me that their grading standards and criteria will eventually become the world standard. The current problem is not that PMG grading is less tight but that different companies and different countries continue to employ significantly different grading standards and criteria. That problem would presumably disappear if everyone agreed on one single set of grading standards and criteria.