Upgrading – A constant problem

Upgrading of banknotes is nothing new. The higher the grade the better the selling price. A lot of this stems from the "half grades" that are used to describe a note. A note with a half grading of VF+ or aEF will almost always promote this banknote from a VF to an EF. But sometimes we see things that simply blow our minds.

Lot 4766 at Noble Sale 93 was this r60 Ten Pound banknote which was graded as VF. It sold for $349.50

This is the same note, now upgraded to UNC and sold at ebay $1,525.00.

The sale page has a disclaimer that states:
Please note that I'm not a professional grader,therefore do not compare my standard of grading to professional dealer or auction house. If you do not like my standard of grading pls do not bid my item.

The seller is admitting that he is not a "professional grader" but then chooses to discard a professional grading for one that he knows will return a much better sale price. The seller made a nice profit, but not as much as he expected, given that the final price was only around 10% of some current CV valuations.

We now await the buyer feedback to see if they know what a lemon they've bought.

Be careful out there.

Extra Information : I have just eceived an email from an experienced banknote buyer with an indepth knowledge of Singapore [sellers location].

"The biggest problem is they mostly laminate their banknote offerings because of the local humidity, so unless you ask them to cut open the plastic and take the note out, you cannot get a true grade on the note. I had contact recently with a guy who has dealt with notes from Singapore. He opened up a laminated recent purchase, the note supposedly being UNC, whilst I was on the phone to him and sure enough, the note had creases that you couldn't see with it being laminated"

2012
There are, of course, always a few exceptions, but generally 2011 was a quiet year for sellers. Many auction listings were passed in due to failures to reach their reserve. We have had a Global Financial Crisis to contend with and currently [January 2012] we are waiting to see if Europe implodes and causes another global financial dilemna. This has caused many markets to become unstable and no one is immune. The good news is that buyers of banknotes are getting unbelievable deals. If you are a follower of auction sale results I am sure you have been amazed at some of the bargains that were available. What this year will bring is anybody's guess, but I feel that it will almost mirror last years results.

International Auction Galleries' last auction of 2011 [Sale 75 – 6th November 2011] had this interesting introduction: As we contemplate the offerings in this sale, it is interesting to note that the International Numismatic market has been going ballistic, and in many areas, is the strongest it has ever been. Sales in the US and Britain have been reaching new record prices at every turn, underlying the strength of the world market, yet we have lagged behind in the last few years in this respect. The auction scene locally has also been sluggish in comparison to the current catalogue prices in many areas, something that used to be the opposite in times past, and I can see a time in the not too distant future where some major upwards corrections in prices will occur, as well as some corrections in other areas that, on the surface, appear currently overvalued.

New reference pages
Due to the very much appreciated input from D.A.Wood, Frank Robinson and Mick Vort-Ronald I have added three new pages. These subjects not only attract a lot of email enquiries but will also be a useful reference point for our many visitors.

First and Last Issues
There are 156 different First and Last Prefixes in the signature combinations of Australian paper decimal banknotes which includes the two varieties of the Knight/Wheeler $1 Test Notes. After a lot of painstaking research most First and Last Prefixes have been established, but there always seems to be an area of discrepancy. Read the full details here.

Plate Identification Letters
Plate Identification Letters are very small letters found on each banknote of nearly all paper decimal notes issued. Although initially thought to be a security device, it seems that some markings were included to assist with quality control. They are now of great interest to collectors. Where are they located and which letters were used? We have all the information on this subject here.

Missing Prefix Letters
Not all letters of the alphabet were used as Australian Paper Decimal Banknote Prefix letters.
Read more of this subject here.

The eBay factor
Once discarded as a nuisance, eBay must now be recognised as a legitimate online auction house. Many of the sellers are reputable ANDA members, who guarantee the grade and authenticity of all items they sell, and also offer a 100% refund. Many sellers do not offer a Return Policy and sell their notes "as is", offering only a very poor camera image as a source to "self grade" the note. Can you trust the gradings at eBay? Not always, as overgrading remains one of the most serious and overwhelming problems for Ebay buyers of banknotes. Of similar concern is banknote reconditioning as is shown here. Should I purchase notes at eBay? Yes, by being very selective of the seller and by using the PayPal option for payments.

Due to an ever increasing number of enquiries that I have received, I have put together an eBay Buying Guide for Australian Banknotes that I hope new users of eBay will find of use.

Banknote Values

Many collectors believe that the print catalogues represent the final word on banknote values. Experienced collectors and dealers know much better. While the various catalogues are invaluable guides, and are highly recommended for all serious collectors, they are not the definitive word on pricing.

Catalogue and market values for banknotes often differ for many reasons :

Out-of-date : Catalogues take many months to produce, and by the time of publication, much of the information contained in them may be already outdated. A sudden increase in the value of a specific note will not appear until the next catalogue, which may be not be released for up to 12 months time.

Estimates : Even though the catalogue valuers always do their best to provide honest values, the fact remains that they are not always reporting actual sales, but rather simply providing estimates of the value of notes that may not have been handled or sold in years, if ever.

Unrealistic : It is very unusual for a catalogue to show a drop in value, even though this sometimes happens. Just as the sale prices of land, stamps and coins fluctuate, so also do the prices for banknotes.

Incomplete : As collectors who specialize in particular notes will confirm, there can be dramatic differences in the market values of specific banknotes, especially with the first and last printed notes in a series. It is only recently that some catalogues have picked up on these specifics.

Inaccuracy : Catalogues have been known to contain errors, such as incorrectly listed notes and unlisted dates. They may also contain incorrect values due to printing errors.

Rarity : Collectable banknotes are not commodities readily available on a retail market at a fixed price. True rarities may come on the market only once or twice in a lifetime, and even the some "common" notes are sometimes impossible to find at any price.

The two usual main indicators of value are rarity and condition.

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