Coins and Paper Money -> Paper Money: US -> Large Size Notes -> Federal Reserve Notes
One of the most interesting collectibles in the field of coins and paper money are federal reserve notes. However, there is quite a bit of confusion out there about what these notes really are. If you are serious about getting into collecting federal reserve notes, there are a few things you need to know before you get started.
1. Knowing the Difference
There is a big difference between federal reserve notes and federal reserve bank notes. The first term refers to actual paper money, while the second is a specific type of banknote that is only produced by the Federal Reserve. Each one has a different collectible value, and it’s important to be able to tell the difference when you are collecting them. Some will be worth more than others, but generally, regular federal reserve notes are quite collectible.
2. Understanding the Fiat
The fiat, or agreement with a federal reserve note is that the reserve is not obligated to pay the face value of the note in gold or silver. In other words, this type of currency is not backed by a gold or silver standard. This works in both ways for collectors. For example, a $5 note may be worth much more than that, while a $100 note that is not collectible may only be worth $100.
3. The Two Dollar Bill
Surprisingly enough, one of the most collectible federal reserve notes is the $2 bill. All joking aside, these are a lot of fun to collect and many kids get their start with one of these bills. These actually can be spent just like regular money, but if you do find one of these, it’s best to put aside since the overall value may exceed the face value.
4. Condition Matters
As with most collectibles, the overall condition of a federal reserve note will determine its actual value. Ideally, you should look for notes that have not been circulated, but these may be hard to find. You should be able to come across notes that are referred to as “crisp” however. These are in perfect condition and are considered to be the best collectibles.
5. The Older the Better
Anytime you can find a federal reserve note that is at least fifty years old and still in good condition, there is the potential that it could be very valuable. At the very least, it will be worth more than the face value of the note. For example, a $10 federal reserve note that was printed in 1950 in great condition may be worth three times the face value. As notes age, they will become more valuable in many cases, so it is a good idea to keep looking.
If you do decide to collect federal reserve notes, it is important to do your research and stay on top of current trends. You never know – you may just be sitting on a gold mine, even if the note isn’t backed by the gold standard.
Photo Credits: pbarnhart_cedarpark
Originally posted 2008-09-18 14:00:00. Republished by Blog Post Promoter
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