Problem Notes Will Not be Placed in "Red Holders" Any Longer, PCGS Currency Announced
Officials from the market leader regarding third-party grading and
authentication PCGS Currency, announced that notes that have serious problems
and/or require restorations will not be placed in "Red Holders" any
longer.
Despite the fact that the grading standards on notes with problems have not faced any changes, the "Apparent" grade system still being active, and such notes will be positioned into PCGS Currency holders, these having a security tape label colored green. The word "Apparent" is to be larger and bolder than it was before. The same is with the problems that are stated on the holder of each note; however the color of the holder will not be red.
Taking into consideration the PCGS Currency Grading Standards, notes
with major problems, including tears, splits, holes or those that were
restored, including repaired tears or redrawing of the design will be marked
with "problem note" designation. These issues will be noted on the
grading label. In such cases an "Apparent" grade will be given. The
grade will be followed by a short description about the problems or repairs.
The "Apparent" grade will associate to what the note would have graded, having no problems mentioned. For instance, it is believed that "Apparent VF30, bleached and starched" represents a description of a problem note, just like "Apparent XF45, upper-right corner restored". There will be no net grade given.
"Grading problem notes is an important function of any currency grading service, as so many rare and desirable notes have flaws, repairs, or restorations to some degree or another," mentioned Laura A. Kessler, the PCGS Currency Vice President. "This minor change in the color of the holder will help dealers and collectors better market this type of material, as many hobbyists simply associate the red colored holders as something that they should stay away from. Many great collectible notes are not flawless but are still very valuable, and these notes deserve equal footing in the marketplace," she added.
"The red holder idea was designed to make problem
notes stand out in the marketplace. While the "Apparent" grade system
is still the best way to approach the problem of flawed and/or repaired
currency, as we believe net grading is more a market phenomenon influenced by
relative value over time rather than a standard that can be consistently
applied, the red holders simply were not accepted in the hobby. By making this
minor change, we are keeping what is best about our grading system and yet
improving the idea to make these notes more marketable and saleable," said
the President of PCGS Currency, Jason W.