When it comes to paper currency, not all bills are created equal. Some bills are actually worth far more than their face value to collectors and enthusiasts. The key factors that make certain bills valuable include age, rarity, and condition.
Older Bills
In general, older paper currency tends to be more valuable to collectors than modern bills. This is especially true for bills that are no longer produced. For example, United States $500, $1,000, $5,000, and $10,000 bills that were printed decades ago can be worth many times their face value today. These large denomination bills were discontinued in 1969 and are now quite rare.
Another factor is the age of the design. Series date refers to when a bill’s design first debuted. In the U.S., Federal Reserve Notes with earlier series dates tend to be more prized. For instance, a $20 bill from the 1928 series often carries a premium over the same denomination printed in 1950. This is because there are far fewer left uncirculated from the earlier series.
Low Print Runs
Some paper money issues simply have very small print runs, meaning only a limited number were originally produced. Low supply coupled with collector demand puts upward pressure on prices for rare banknotes.
A good example is the 1934 $100,000 gold certificate. With a face value equal to over $2 million today, this was the highest denomination ever issued for public circulation in the U.S. However, only 42,000 were printed and most were destroyed when the government called them in after World War II. The few that remain trade hands for hundreds of thousands of dollars.
Pristine Condition
For collectors, condition is paramount. Bills that are crisp and free of folds, stains, tears or other imperfections are much more desirable. This is especially true for older specimens. The difference in value between a lightly circulated and pristine uncirculated note can be enormous.
For example, a 1934 $1,000 bill in very fine condition might sell for around $4,000. But an uncirculated example could easily fetch over $30,000 at auction due to its rarity and flawless appearance.
Fancy Serial Numbers
Banknotes with unique or eye-catching serial numbers can also command significant premiums. Fancy serials include numbers that are low, repeat digits, or form special patterns and sequences. The most coveted are solid numbers, like 0000001 or 88888888.
Even relatively modern bills with fancy serials can be listed for thousands of dollars by dealers and collectors. However, unless they are also in perfect condition, their market value is usually only a modest premium over face value.
Error Bills
Production mishaps also make some bills far more intriguing. These error notes feature misaligned or duplicate printings, missing elements like serial numbers, and other odd flaws.
The 1955 $1 Double Denomination note is one famous example, where a $1 back design was paired with a $20 front. Only a few of these one-of-a-kind errors escaped the BEP facility. At auction in 2018, one of these unusual bills sold for over $68,000.
Star Notes
Star notes are replacement bills the Bureau of Engraving and Printing (BEP) prints when an error is detected during a print run. These notes feature a star symbol next to the serial number.
While most star notes are common, some are considered more valuable due to their rarity. For example, some early star note print runs were extremely limited. A 1953 $2 star note in crisp uncirculated condition can sell for $5,000 or more due to only 16,000 being printed.
Old Banknotes
Pre-1928 large size banknotes issued by Federal Reserve banks also tend to be worth more than today’s common small-size bills. This is especially true of notes in lightly circulated condition.
For example, a 1914 $20 Federal Reserve Note is typically worth at least $100 in very fine condition. A pristine uncirculated example could be valued at $850 or more. However, old bills that are heavily worn or damaged generally have only nominal value above face.
Hawaii and North Africa Notes
Two interesting and popular special issues are the World War II Hawaii and North Africa notes printed in 1935. These were issued after the Pearl Harbor attack and during WWII to allow the U.S. government to more easily circulate currency in the Pacific and Northern Africa.
Most of these exotic looking bills can still be found for around $100 or less in fine condition. But crisp uncirculated examples are scarce and quite valuable, sometimes reaching over $2,000 at auction.
National Currency
Before the Federal Reserve was established in 1913, thousands of U.S. national banks issued their own paper currency. These national banknotes feature the issuing bank’s name and charter number.
Values vary widely based on scarcity, condition and the issuing bank’s location and history. But many common notes can still be found in circulated condition for around $100 or less. Rarer types like those from West Coast and Southern states tend to be more prized by collectors.
Fractional Currency
From 1862 to 1876, the U.S. issued paper currency in small denominations under a dollar due to coin shortages. Referred to as postal currency and fractionals, these bills came in denominations of 3, 5, 10, 15, 25, and 50 cents.
These undersized notes became obsolete and were heavily used. Clean specimens in very fine condition today can cost anywhere from $20 to $200 based on denomination and issue date. The most valuable fractionals are the “fractions of a dollar” notes from 1869 picturing a locomotive and wagon.
Demand Notes
Demand notes were the first paper currency issued by the United States government in 1861 after the start of the Civil War. They earned their name because they were redeemable “on demand” for specie coins and bullion.
Most demand notes were later replaced by more sophisticated legal tender United States Notes. However, some Scarcer denominations like $5 and $20 demand notes can still be found for around $2,500 to $4,000 in fine condition.
Conclusion
While most old paper money has modest collectible value, there are certain bills that are worth far in excess of their face value due to age, rarity, condition, and other factors. From high denomination notes and fancy serial numbers to unique errors and special issues, the banknotes that collectors covet most tend to have an interesting origin or story behind them.
Tips for Finding Valuable Paper Money
- Carefully inspect old bills for condition and defects
- Research series dates and production figures
- Look for star notes printed in very limited runs
- Examine serial numbers for unique sequences
- Pay attention to paper color and quality
With knowledge and sharp eyes, you just might spot valuable paper money where you least expect it!