I've been comparing the currency and coin collecting hobbies. I think most people would agree with me, that if currency were as popular as coin collecting, values of currency would sky rocket and likely surpass their metal counterparts. After all demand affects paper money prices more than scarcity - just compare educationals, bisons and chiefs to jackass notes as an example. There are far more of these notes than jackass notes, but they command higher prices. So how do I get currency collecting more popular, I thought to myself. I know I was introduced to the hobby by finding a cool serial number star 2004A $20 with serial #GF 00066600 * in gem uncirculated condition. I put it up on eBay and got over $100 for it. I looked on eBay some more and found all these other cool notes. A friend of mine got into it by getting a silver certificate one day from a bank. Another person I spoke to got into it when he saw some old small size notes in a restaurant display. So I figured I could invest in the future of the hobby and increase the value of my collection by introducing others to it. How do I do that? Buy some average wear silver certificates and red seal twos, and spend them! That's right. Spend them and release them into circulation. It's a very long term strategy, but it could pay off. I'll never know if it works though. I know this one gas station owner quite well, and I am sure that if I paid for gas with these, he would give them out as change to future customers. He might even direct them to look online at other notes (large and small), if they seemed interested in the notes. I'll have no way to find out if it truly works, but if I buy $100 worth of silver certs at perhaps $50 to $75 over face and spend them, perhaps 15 to 25 people would get interested in currency and what else is out there. Maybe half of those people will actually buy another note on eBay. Maybe the other half would show their friends and family. With a $50 to $75 investment, perhaps I can increase the value of my holdings by 5%-10%. Maybe more? The counter-argument to this, is that any future acquisitions will cost me more due to more buyers in the marketplace. Am I crazy? Or could this work?
You're crazy if you think this will impact the demand for YOUR notes. However, it is a fun and cool idea just to see the cashiers response. You can also do this with ike dollars.
Not crazy Mr. Alex, but if you really want to expand your knowledge to a wider audience, you should try social media. There are a few Youtube members that get some incredible views off of the "currency" topic in their videos. Maybe you should give that a whirl?
I'm thinking long term... maybe 5+ years to see any significant returns. Good idea. I remember seeing a video of this guy showing a bunch of notes and talking about them. However, they were all copies.
Here is another idea: Organize a paper money club in your area. Get a table at a local coin show or talk to a dealer who has a significant amount of paper money at a local show. Ask the people who stop at the table whether they would be interested in meeting regularly to discuss paper money. Find a location and a convenient meeting time. The Midwest Chapter of the International Bank Note Society began this way in 1989. There were 6 people at the first meeting and attendance stayed at that level for about 2 years. The chapter now has about 100 on the mailing list and 20-30 attend the monthly meetings.
One thing to keep in mind: a lot of the recipients will be uncertain about a "funny-looking" note, and deposit it at the bank, where it'll most likely be sent with other "worn-out notes" back to the Fed for destruction. Once, years ago, when I was looking for half-dollars at a local bank, I saw the teller grab a large stack of old and heavily-worn bills; the one on top was a $50 that looked like it was from the 1950s. I'm sure they were all being sent back for destruction. I didn't (and still don't) know enough about currency to try to grab them, but it made me sad to think about what else might have been in that stack.
Theremayhavebeen some nice stuff in that stack. But i grabed onto a wife once that proved there maybe something in there you really dont need or want. Most ill natured lady iv ever seen after her last name changed.
That may work on a local level to increase the awareness of this hobby, but you'd need a national increase to have the expected results.
From my perspective kookoox and lettow have the best insight to your idea. I would try and persuade you away from trying to increase the value of your collection or holdings and let the law of supply and demand work as it may. Its a hobby and not equity holdings or playing the market to gain a buck. You have the knowledge and experience on your side to make the smart purchase to best help your chances for future increase in prices. But even with all this said i think a large part of is tied to the economy and how much people are will to spend their disposable income on notes. Look at where prices for all notes where before '07-"08 compared to where their at now. If the economy goes bad a little bit from here that 5% may go down fast in any extra premiums at the purchased price.
I bought some coins in a shop in Orlando. I paid with cash. In my change the shop keeper gave me a silver certificate. I know that peeked my interest in currency. (Though I may not be a very good example as a coin collector already)
bonni makes some great points. Supply and demand are tricky things, take me for example, my note collection might as well not have existed until this past year, they have never seen auction for 20-30 years at minimum, forgotten, you really have no idea how much is horded out there. Take this for example, the collections of bills housed at the federal reserve banks, if those were ever sold, u could see the prices across the entire bill market collapse. Key to collectors markets is people's willingness to spend disposable income on them. In the 90s, average ppl did this. Now, we have 1 good thing going for us in the coins,currency,stamp markets THE BABY BOOMERS. They have lots of time and money on their hands, and are more likely to take to collecting in these markets then people of the current generation.
