NGCs Mark Salzburg said the following in an interview with Maurice Rosen, available on the NGC site: MR: What other coins should investors know more about? MS: Now that you have me thinking, I’ll reveal a potentially amazing growth area to you: Colonial Currency. These notes helped finance the Revolutionary War. Their historical importance is tremendous. This area is clearly undervalued, one that if properly presented to new collectors or investors could embark them on a serious road buying these fascinating numismatic antiques. Unfortunately there are only a handful of dealers in this area now. Here’s an interesting story. I was talking to a manager of a multi-billion dollar hedge fund. He asked me, “What do you think I should buy?” I tell him to buy Colonial Currency and give him my reasons. He asks me how much they cost. I tell him from $100 or so to several thousand dollars each. He asks me how he can pick up $5-10 million worth of them. Clearly, I had no helpful answer for him but it’s an insight to the potential of this area and so many others in numismatics. http://www.ngccoin.com/news/viewarticle.aspx?IDArticle=2259& How realistic is this area for investment purposes? I stopped at a dealer's shop today and he showed me a number of notes of Colonial and Continental currency, some were graded MS (by him). How would you handle a deal with nice notes from various states so as not to get "burned"? Is this truly a good investment area? Thanks.
The article does not say anyting that should not be obvious to anyone who has spent any time in the numismatic field. As he indicates, the same could be said about any area of numismatics. If a well-heeled collector or two decides to enter a narrow market prices may take off. When they decide to get out the market will fall. It happened with large size type notes 2-3 years ago.
That quote should say all you need to know as far as investment potential. And because it has been undervalued for more than 250 years means it will more than likely remain so. Things that remain undervalued do so for reasons. Guy
The question here should be what would be the criteria for an opportunity for "sleeper" material, whether coin, notes or antiques to "wake up"? Not that Salzburg is wrong, we all know that etc.. That is no way to address a subject seriously. The question is what are the notes that would be worth buying? Do the auction companies do a good job of listing Continental and Colonial notes?
Heritage does a good job. They are all worth buying if you like them. But to be honest, currency is even worse than coins for investment purposes. The currency market has been down for many years. Notes that will probably hold their value can be bought, but you're going to pay for them. Guy
I passively collect colonial era currency and will state categorically - it is not an investment. Really numismatic items are very poor investments across the board vs. PM's and stocks, even bank accounts. Treat them as a collectable and enjoy them. 99% of the colonial currency out there doesn't have a whole lot of appeal to a whole lot of collectors though, it is an ugly stepchild in paper money collecting. Most of the notes are pretty plain, no pretty colours, designs, or ladies on them. All they have going for them is history and 18th century dates. There are then the 1% of notes that I myself pursue, the earlies before 1750, the ones actually printed by Benjamin Franklin(before his partnership with David Hall), autographed notes by signers of the Constitution or Declaration of Independence etc. Those are the ones that have a solid, albeit small collector base that supports the greater prices for them. Right now there are lots of common North Carolina, Pennsylvania and Continentals out there - but not a lot of takers even in auctions. Prices are continually pretty soft for them.
