Spend any time browsing a major currency auction, whether it is Heritage Auctions, Stack’s Bowers, or even eBay’s top-tier listings, and you will notice something quickly: almost every significant note is sealed inside a hard plastic slab bearing the logo of either PCGS Currency or PMG. Third-party grading has become the backbone of the modern paper money market, providing collectors and investors alike with a standardized, trustworthy assessment of a note’s condition and authenticity. But the two services are not identical, and choosing the wrong one for a particular note can mean the difference between a strong sale price and a note that sits unsold for months.
A Brief History of Paper Money Grading
Before the mid-2000s, paper money collecting was largely a raw note hobby. Dealers graded their own inventory, and buyers either trusted them or they didn’t. The Professional Currency Dealers Association (PCDA) and the Society of Paper Money Collectors (SPMC) published grading guidelines, but enforcement was impossible. A note described as “Choice Fine” by one dealer might be a “Very Fine” to another, and forgeries or restored notes occasionally slipped through even experienced hands.
Coin collectors had enjoyed the benefits of PCGS (Professional Coin Grading Service, founded 1986) and NGC (Numismatic Guaranty Company, founded 1987) for nearly two decades before the paper money equivalent arrived. In 2005, both PMG and PCGS Currency launched within months of each other, fundamentally changing the hobby. PMG was founded as a division of the Certified Collectibles Group, the same parent organization as NGC for coins. PCGS Currency was established as an extension of PCGS, the dominant coin grading service. Both brought institutional credibility and sophisticated authentication technology to a hobby that badly needed it.
The Grading Scale: More Similar Than Different
Both PMG and PCGS Currency use a 70-point numerical scale adapted from the Sheldon scale originally designed for coins. The grade numbers correspond to familiar descriptive terms that experienced collectors will recognize immediately.
Key Grade Breakpoints
At the lower end, grades 1 through 15 cover Poor through Choice Fine territory. A grade of 1 (Poor) describes a note that is barely identifiable, heavily soiled, torn, or taped. Grades 10 through 15 represent Fine condition, where all major design elements are visible but significant wear has occurred. Grades 20 through 35 span the Very Fine range, where a circulated note retains good detail but shows obvious handling. Grades 40 through 58 cover Extremely Fine and About Uncirculated territory. Above 60, notes are considered Mint State, with 63 (Choice Uncirculated), 64 (Choice Uncirculated), 65 (Gem Uncirculated), 66 (Gem Uncirculated Plus), and the coveted 67 through 70 representing Superb Gem territory.
A grade of 70 is, in practical terms, theoretical perfection. Both companies have assigned 70s to modern Federal Reserve Notes printed after 1990, but genuine 70s on pre-Federal Reserve era notes are essentially nonexistent. For perspective, a 1928 $1 Legal Tender Note in PMG 65 EPQ is considered exceptional; a 70 would be essentially without precedent and would fetch a multiple of whatever a 65 commands.
When comparing grades across both services, do not treat them as perfectly interchangeable. Many seasoned collectors and auction house specialists believe PMG grades roughly one-half to one full point more conservatively than PCGS Currency on circulated notes, particularly in the VF-30 to EF-45 range. Always examine the actual note images when buying slabbed currency, not just the grade number.
The EPQ and PPQ Designations: What They Mean and Why They Matter
This is where the two services begin to diverge in ways that have real financial consequences. PMG uses the designation “EPQ” (Exceptional Paper Quality) to indicate that a note has not been cleaned, pressed, or chemically altered, and retains its original paper quality. PCGS Currency uses the equivalent designation “PPQ” (Premium Paper Quality).
These designations are not merely cosmetic. On high-grade notes, the difference between a slabbed grade with and without the EPQ or PPQ qualifier can be dramatic. Consider a 1934 $500 Federal Reserve Note from the Chicago district (Fr. 2201-G). In PMG 63, without EPQ, such a note might realize $3,500 to $5,000 at auction. The same note in PMG 63 EPQ can push $7,000 to $9,000 or more, because the EPQ confirms original surfaces and no artificial enhancement. Buyers know exactly what they are getting.
PMG is generally regarded within the hobby as slightly stricter in awarding EPQ designations, particularly on large-size notes printed before 1929 where light pressing is extremely common. PCGS Currency’s PPQ standard is considered comparable, though some specialists feel PCGS is marginally more generous with the qualifier on small-size notes from the 1928 to 1950 era.
For pre-1929 large-size notes, EPQ or PPQ designation is especially critical because pressing was historically common practice and can be difficult to detect visually. If you are buying a raw large-size note graded above VF-30 without a third-party slab, seriously consider submitting it before purchase or negotiating a contingency based on the outcome.
Holder Technology and Long-Term Preservation
The physical holder, or “slab,” matters more for paper money than it does for coins. Paper is an organic material that reacts to humidity, off-gassing from plastics, and UV exposure over decades. Both services have invested significantly in holder chemistry.
PMG Holders
PMG’s current generation holders use an inert, archival-quality Mylar window mounted in a rigid polystyrene frame. The note is secured with a paper mount that does not contact the face of the note with adhesives. The label is printed with UV-reactive security ink and includes a certification number tied to PMG’s online registry. Holders introduced around 2019 feature a revised snap-lock design that is more resistant to cracking than earlier generations. Some collectors who stored PMG holders from the 2005 to 2012 era have reported minor yellowing of the inner sleeve on lower-humidity environments, though this is not universal.
PCGS Currency Holders
PCGS Currency holders use a similar inert polymer construction with a sonically sealed frame. The label design has evolved several times since 2005; the current generation features a blue and gold color scheme with a holographic security strip. PCGS Currency holders are slightly thicker than PMG holders, which some collectors prefer for perceived rigidity, while others find them harder to store in standard album pages designed for PMG slabs. Both companies offer specialized storage boxes calibrated to their holder dimensions.
For long-term storage, both holder types are considered archivally sound when kept in stable conditions: roughly 65 to 70 degrees Fahrenheit and 45 to 55 percent relative humidity. Neither holder should be considered a substitute for proper climate control on high-value notes.
Market Acceptance and Registry Competition
In terms of sheer volume, PMG leads the paper money grading market. With over 7 million notes certified as of 2024, PMG dominates auction catalogs from Heritage, Stack’s Bowers, and Lyn Knight Currency Auctions. At major shows like the Florida United Numismatists (FUN) convention and the Chicago International Paper Money Show (CPMX), PMG-graded notes consistently outnumber PCGS Currency notes by roughly three to four times.
This market dominance matters practically. When you submit a note to auction, a PMG-graded example will typically generate more competing bids simply because more collectors are familiar with and trust the PMG standard. For very rare notes, such as a Fr. 379 1890 $1,000 Treasury Note or a Fr. 183 1880 $50 Legal Tender Note, the grading service may matter less because the note itself drives bidding. But for mid-range collectibles, a PMG slab typically commands a modest premium at auction.
That said, PCGS Currency has a fiercely loyal collector base, particularly among collectors who also collect PCGS-graded coins and appreciate the unified registry system. The PCGS Set Registry for currency allows collectors to compete directly, tracking population data and registry scores across specific type sets and series. PMG’s registry is equally functional and arguably better organized for paper money specialists, with finer granularity in series distinctions.
If you are building a registry set for competition purposes, check the population reports on both services before deciding where to submit. For some obscure series, one service may have significantly lower certified populations, making a top-pop designation easier to achieve. A note graded PMG 65 EPQ with a population of 3 in that grade and none higher is worth considerably more than the same note graded 65 EPQ in a population of 47.
Turnaround Times and Submission Tiers
Both services offer tiered submission levels, ranging from economy bulk submissions to express and same-day options at major conventions. As of 2024, PMG’s standard economy tier runs approximately 30 to 45 business days and costs $22 to $30 per note depending on declared value thresholds. Express tiers with 5 to 10 business day turnarounds run $65 to $85 per note. Walk-through service at shows can cost $150 or more per note but returns a graded slab within hours.
PCGS Currency’s pricing structure is broadly comparable. Economy submissions run $25 to $35 per note at standard declared values, with express options in the $70 to $90 range. Both services cap certain tiers based on declared value, meaning high-value notes such as a 1934 $10,000 Federal Reserve Note (Fr. 2230-G) must be submitted at premium tier pricing regardless of desired turnaround.
For bulk submissions of modern Federal Reserve Notes, such as star note collections or low serial number notes, PMG’s economy tier is particularly cost-effective. Submitting 20 or more notes on a single invoice often unlocks modest per-note discounts on both platforms.
Authentication Capabilities
Both services employ multi-layer authentication protocols, including ultraviolet examination, magnification, fiber analysis, and expert panel review. PMG has historically been considered the stronger authenticator for large-size notes predating 1929, largely because of the depth of expertise on its grading team. PCGS Currency has developed a strong reputation for authenticating National Bank Notes, a notoriously difficult area where altered charters and counterfeit signatures are not unknown.
For modern notes with known counterfeiting issues, such as certain 1996 and 1999 series $100 Federal Reserve Notes that have been subject to bleaching and reprinting schemes, both services use equipment capable of detecting these alterations. Neither service, however, should be considered infallible. Cases of improperly authenticated notes exist in both populations, which underscores the importance of buying from reputable dealers and auction houses even when purchasing slabbed notes.
| Note / Series | Grade Example | Approx. PMG Pop. | Rarity |
|---|---|---|---|
| Fr. 379 1890 $1,000 Treasury Note | PMG 20 VF | Under 10 total known | Key Date |
| Fr. 183 1880 $50 Legal Tender | PMG 30 VF | Fewer than 25 graded | Rare |
| Fr. 2201-G 1934 $500 FRN Chicago | PMG 63 EPQ | Approx. 40 to 60 graded | Scarce |
| 1928 $1 Legal Tender (Fr. 1500) | PMG 65 EPQ | Approx. 80 to 120 graded | Scarce |
| 1934A $5 Silver Certificate (Fr. 1651) | PMG 66 EPQ | 150 to 200 graded | Scarce |
| 1995 $1 FRN Atlanta Star (F*) | PMG 65 EPQ | Approx. 200 graded | Scarce |
| 1963 $2 Legal Tender (Fr. 1513) | PMG 67 EPQ | 300 to 400 graded | Common |
| 2009 $1 FRN Low Serial Number | PMG 66 EPQ | Very high volume | Common |
Which Service Should You Choose?
There is no single correct answer, but here are the practical guidelines that experienced collectors follow.
Choose PMG when: you are submitting a note primarily for auction sale, particularly through Heritage or Stack’s Bowers. When you are working with large-size type notes from before 1929, where PMG’s authentication depth is strongest. When the note is from a series or type where PMG’s population report dominates and market comparables are predominantly PMG-graded.
Choose PCGS Currency when: you are building a unified PCGS registry across both coins and currency and value the integrated set registry system. When you are working with National Bank Notes where PCGS Currency has developed particular expertise. When your primary selling venue is a dealer network or private sale where PCGS Currency has strong acceptance, or when you simply prefer the holder aesthetics and find that comparable buyers in your niche favor PCGS labels.
For truly rare notes valued above $10,000, some collectors submit to both services, a practice called cross-grading or dual submission. This is not common, but on a $50,000 note where a one-point grade difference could mean $15,000 in auction value, the $150 cost of a second opinion is trivial. The collector then presents the higher or more favorably designated slab for sale.
Before submitting any note, research the population reports on both PMG’s and PCGS Currency’s websites. Both services offer free online population lookups. If one service shows a dramatically lower certified population in top grades for your specific note, that service may deliver a more valuable top-pop designation. Population data updates regularly, so check within a week of submitting.
Cracked-Out Notes and Reholdering
One final practical consideration: both services accept reholdering submissions where an existing slab is cracked open and the note is reexamined for a fresh grade. This practice is most common when a collector believes a note was graded too conservatively, or when an older generation holder is damaged or yellowing. Reholdering fees are similar to original submission fees, and there is always the risk that the new grade comes back lower than the original. Approach cracking out with caution and only when you have strong reason to believe the original grade was conservative.
Conclusion: Two Strong Services, One Informed Choice
After nearly two decades, both PMG and PCGS Currency have earned legitimate places in the paper money hobby. PMG holds a commanding market share and is the default choice for most auction-bound material. PCGS Currency offers a compelling alternative, especially for collectors deeply integrated into the PCGS ecosystem or working in National Bank Note specialties. Neither service is universally superior, and the best collectors learn to use both strategically. The fundamental truth remains constant: a properly graded, authentically certified note in an archival slab is almost always a better buy than an equivalent raw note at a similar price, and understanding the nuances of each service will only make you a sharper, more confident collector.
