Minneapolis 1928-B $ 5 Federal Reserve Note. Sold for $ 166 in 2002. (Images courtesy of Heritage Auctions www.ha.com)
Coin prices are rising, and gold and silver prices play an important role in this development. These effects are having an impact on the paper money market, and as I have reported, foreign currency sales have also increased in value. I think similar factors are at work. For example, condition also plays a big role in pricing and rarity. Combined, rarity and condition make prices go up and up. In both areas of our hobby, third-party classification has an enormous impact. Before the grading revolution, really nice, bright, well-centered grades brought a premium. Today notes with the MS67 grade, Superb Gems, sell twice as much as MS65 notes. I believe that the toughness rating is a little softer, as it was with coins. Those with keen eyes bought coins that they believed were undervalued, broke them from their holders, and resubmitted them. This was usually successful and made a decent profit. I once bought a 1926s Buffalo Nickel that a dealer classified as Extra Fine. I sent it in and got a grade of MS 58 and a value four times more than an extra fine.
Currency is a bit more difficult because of the serial numbers, but reports from a service that reports on past and present auction results often have a lower grade in previous auction descriptions. This reinforces the “buyers watch out” axiom. Take this into account and check the notes in person before bidding. Unfortunately, in the current situation, this is generally not possible.
Fr.2155-D * $ 100 1934C Federal Reserve Note. Sold for over $ 5,000 in 2007.
It will be interesting to see if the FUN show confirms this upward trend. Rare fractional currency prices will be noted in the upcoming auction of New York collector Robert Laub. I assume that the prices for small banknotes will continue to fluctuate. While prices are strong at large auctions, Heritage’s Tuesday night auctions often feature bargains. I was recently able to purchase a US $ 5 Minneapolis note (1928) in a non-circulating condition from Choice, plus two other 1934C notes for about US $ 200. An Extra Fine Minneapolis 1928 Extra Fine note fetched $ 300. Big notes in attractive condition of Very Fine and Extra Fine increase in price. This applies to Silver Certificates, Statutory Tenders, Federal Reserve Notes, Coin Notes and Gold Certificates. Of course, the higher the state notes will look great in your collection, and they will also gain in value over time. Early on, I bought star notes and low serial numbers if possible. My purchase of an MS65 Black Eagle with a two digit serial number has increased significantly from the $ 500 I paid a few years ago, while ordinary Uncirculated Black Eagles have been slowly appreciating in value.
I had an interesting conversation with Larry Falater, a very knowledgeable collector / dealer. He noted that by the age of 85 he continued to be young and vigilant as he continued to collect. I agree with this theory. At almost 80 years old, I feel young and optimistic as I keep collecting. Larry cited Eric Newman as an example. He remained committed and attentive until his death at the age of 106. I have made my heirs aware of the value of my collection so they can gain its full value, but I enjoy collecting and attending shows. Hope to see you at one when the virus wears off.
