Many Factors Determine Collectible Currency Values

Numismatists are often mistakenly thought to be collectors of only coins. In reality, the broad discipline of numismatics encompasses a broad study of money in general, including paper currency. Veteran hobbyists in this field understand that there are many factors that determine collectible currency values.

For starters, the year of printing matters for each note. Each note of currency will bear at least one printing of a year. The year is known as the series, meaning when the currency was printed, not necessarily when it began circulation. A good example of this is the 1935 U. S. Silver certificate series. First printed in 1935, the series was printed the same way through 1956.

A better way to gauge paper money’s age is to determine what signatures are printed on the currency. These will be the signatures of the federal officers in charge of the treasury and mint, when the notes were actually printed. Dating these signatures will date the real age of the currency.

Another misconception is that collectible currency values increase with age. The corollary to this is the mistaken idea that a note’s value increases if it’s “in great shape for its age”. Collectors place no stock in currency’s age. All that matters is its rarity. For instance, experts know that thousands of 19th century currency notes exist that are in perfect, un-circulated condition. However, since there are so many of these notes, neither their age nor their perfect condition carries much weight. In this instance, rarity and survival rates rather than age or condition would be the determining factors in the currency’s value.

Many people unfamiliar with the hobby of collecting money also are confused about the role that a note’s condition plays in currency collectible values. Grading the value of paper money is quite complicated, far more than the common assessment that “everything is readable” on the note. A note with unreadable printing would have no value as a collectible under any circumstances, because it would be impossible to determine its rarity, survival rate, series number and so on.

Novices in money collecting can’t be expected to understanding the intricate classifications of paper money. However, rather than using vague terms, it’s better to examine each note for such things as creases, folds, pinholes and torn or ragged corners and describe them accurately to buyers and collectors. For optimum value, paper money should be stored in plastic sleeves and keep in an environment with temperature control.

Ultimately, there is one certain truth in determining collectible currency values: No note will ever be any rarer than it was when it was first printed. In other words, holding onto a note for a long time doesn’t make its value increase if it wasn’t rare at the beginning.