I have been in touch with a dealer from whom I bought my $500. While asking about $1000s, he provided me with a very interesting tid bit. For anyone in the market for a high denomination, this may be relevant to you. There is an anonymous buyer, who has the desire to buy all $500 and $1000 bills in high grade. He has cleared out dealer inventories. This dealer sold his entire inventory of high denoms (58 & up) to the buyer's agent. Not only does this buyer have a desire to own them all one day, he has the means to do so. I figure that means $100 million plus to spend. What does this mean, you ask? Well, someone who is trying to buy all notes will drive prices sky high. It simply boils down to supply and demand. I personally doubt that this buyer will ever be able to own them all, since some people won't sell at any cost. Another reason is that while more and more notes come off the market, prices will go up. That means each subsequent note will be more and more expensive. Own them all? I don't think this anonymous buyer can accomplish it. But they can still do some serious damage. If you're interested in a high grade (58 and up) $500 or $1000, I would act quickly. For your reference, the most common 1934a $500 Chicago in PMG or PCGS 63 epq/ppq have sold between $3600 and $4200 lately. Just a year ago, they were closer to 2500-3000. I did some research on recent sales and saw prices jump at least 25% in the last 6 months, which has not even remotely followed the market trend for other notes. This supports the claim. Circulated notes have seen an uptick, but not as sharp. I can't guarantee that you'll make money by buying one. This isn't investment advice whatsoever. I recently obtained a $1000 in 63ppq (through the help of my folks). Prices are still climbing so I wanted to share this info. If you want one, my opinion is buy it sooner than later.
Its happened before. The market adjusts. One collector at one time owned over half of the 1856 flying eagle cents. I knew an old collector in Iowa who owned a few hundred 1877 cents. He would cackle with glee the thought of all of the collectors who couldn't complete their indian head collection because of him. So, it happens, someone gets their jollies by punking some aspect of the market for a while. Eventually supply and demand wins, eventually they either grow tired of it or they die, and the coins go back into the market. Its a free world, if that what makes someone happy, then good for them I guess. It was good news to pass along though Funkee. Thanks for the post.
You're right medoraman, the market will eventually right itself when this guy croaks. It doesn't sound like his primary intention is to manipulate the market, though.
On a smaller scale, but important for particular collectors of Nationals I own most of the reported notes of a couple of different places that I will not disclose. There is an aspect of this, for instance by acquiring numbers of a particular area you can have bargaining chips for stuff that is very elusive - so I own 80% of the known $5 and $10 large sized and would be negotiable for selling them if I could acquire a $20 from the 1902 series that I don't presently have and there are two examples of. With the one place I collect from I am going to slowly filter them into the market - they are all small sized T1 and T2 Nationals. With the $500 there are lots of beater pieces out there - they were a common wallet show piece by the 1960s and 1970s and got a lot of wear. The $1000 wasn't usually a wallet piece so they are generally in better shape. I have one of the latter ones from Cleveland in AU - but it is a scarce note and I am keeping it.
OK...I'm good then, lol. I have been searching for notes from Eugene, Oregon...my hometown. I currently own one note.
Always good to know, I look for Nats all the time. Can recommend some reputable sources for Nats that put you on their waiting list if notes come across. Most of my acquisitions have been through this way and not auction venues etc lately.
If you have some places to recommend, please shoot me a PM. I know I am on Don C. Kelly's list...but that's it.
