Collecting Paper Money
Paper Money
Collecting uncirculated paper money has become a hobby for many people. That money which has never reached general circulation has also become most favored by professional collectors. The money may be new today but many collectors believe that by holding it for a period of time, the value will easily exceed the original face value. Both uncirculated money and coins can be collected through your bank.
Life Span of Paper Money
According to the Federal Reserve, the life span of paper money is as follows:
$1.00 is 4.7 years
$5.00 is 3.8 years
$10.00 is 3.6 years
$20.00 is 7 years
$50.00 is 11.9 years
$100.00 is 21.6 years
As of November 25, 2011, there was $1.06 trillion in circulation.
According to a prominent auction house, Federal Reserve notes or paper money that has been in circulation is generally not worth much more than face value. However,
uncirculated notes from earlier years may have a collector premium on the value. If a person can hold an uncirculated $1.00 for more that 4.7 years, value may be increased.
There are specific Federal Reserve notes that have grown in value even though they have been in circulation. Some examples are included below.
Samples of Collector Notes in Circulation
Higher value circulated Federal Reserve notes include the $500 and $1000 note with each having a small premium over their face value unless they are the 1934 Series notes which can be valued at $500 to $800 for the $500 note. The $1000 note can be valued between $1000 to $1400. The price will depend on the condition of the note.
The 1928 Series $500 and $1000 notes can have an additional premium added to the value ranging from 10 to 20 percent. If the notes are uncirculated, the value can be as high as twice their face value.
The Horseblanket Currency
Prior to 1928, currency was made in a larger print called “horseblanket” currency. A $1 bill could be priced at $10 to $100 depending on its condition. The higher dollar amount bills are generally rarer and valued at substantially more.
The United States government began issuing $1 silver certificates in 1880. They were turned into the Treasury for silver. The year 1923 was the last year for their issue in a large size print and today a $1 silver certificate from 1923 has a value of $20 to $150 to be determined by its condition.
The 1899 $1 silver certificate is another collector favorite. The design on the certificate was a work of art and the fact that the United States government printed large numbers of the certificate made it easy to acquire. The value can run between $40 and $250.
The $1 note of 1917 had an engraving of Columbus landing in the Americas. Because of its continuing popularity, the value of the note runs between $40 to $150.
As shown by these examples of collectable paper money, there is a definite reward for a collector on specific paper currencies.
