I am new to paper money and wish to know if I made a costly mistake. I paid $472 on Ebay for this note but my local dealer says "stay away from missing pieces, they are worth 10-15%. Around $150". People here on CT say Ebay is a good example of market value, if so why do these notes go for more like 50%.
I'll be honest, I know nothing about paper currency, but I do know that that is one of the more popular US designs. Perhaps it goes for a higher percentage because so many people want it so they are willing to pay more for a damaged piece of a popular design.
I wouldn't rely solely on e-bay prices for market value. Check Heritage and Teletrade auctions too.......
Ebay is a great place to buy and on occasion get a good deal. That said, it's not good for currency because it's not consistent. I don't know anything about currency either so I won't even try to give an opinion on that specific subject. I think you spent too much only because it was an early in your ebay career purchase. Price off of coin shops, coin clubs other auction houses and of course ebay. Again, with that said ebay is not the bible on prices in any way, shape or form.
The book value for this note in Extra Fine (40) is $1450. Usually notes that are missing pieces are anywhere from Poor (1), Fair (2), About Good (3) to Very Good (8) condition, which actually translates to really bad condition. I've never come across a note in EF or better with pieces missing. Someone must have taken scissors to this note. Consider that this note in Very Good (8) is worth about $475. A grade of VG probably means that it has pieces missing. Or is very crumpled, with wrinkles, holes and tears. The fact that your note is in great condition with pieces missing definitely makes it more valuable than a VG note, which is already worth on the books more than you paid. The person talking about 10-15% of face value, is probably referring to notes that are common and easily available in high grades. This note is not that common, and I'd say you got a good deal.
Some collectors are willing to purchase notes with problems, tears, stains, missing pieces, etc. and some will pass and wait to find problem free notes. The note displayed has clean paper, and good colors and was sold way below market value for an XF example, because of it's problems. Looks like you paid less than 50% of what the note would have cost without the problems. I searched the Heritage Archives and found many Fr.273 notes . An XF note with original paper quality (PPQ,EPQ, OPQ) sold for over $1,300 and a similar XF note with an Apparent designation (edge split and tear) sold for just over $800. Way back when I started collecting US paper currency it was suggested to me; If you find a note and describe it with BUT ......I really like this "Chief" note, but it's missing pieces, or This is a really good deal on this "Bison" note, but it's faded and has an edge split, then stop right there and try to find an example that is problem free. If the note is attractive to your eyes, with no buts needed, then in some distant year when the time comes to sell it, the note will be attractive to the eyes of the other buyer too, an important aspect.
Not a bad pickup - thing to remember about eBay auctions, if you win one, someone else thought the note was worth just about the same amount too... In this case, you could have gotten a Fine-15 example for about the same price as this flawed 40. The F15 would have more wear and less paper body, but would be completely intact. So you need to ask yourself which is the larger distraction for you, more folds and paper toning, or the missing pieces. Personally, I would rather have a F15 on this note than substantial missing pieces. It's one of the top note gets in US currency, along with the Buffalo and Educationals. The top left missing piece to me doesn't impact the notes face up value, but the hit under the vignette is a bigger distraction than I would like. Question is - does it look good to YOU - and if so, you really didn't overpay much for it, someone else would have payed $5 less than you did for it...
I think you're not understanding what many here at CT say about eBay. It's not a GOOD example of market value. It is a more ACCURATE example of market value compared to price guides, like Red Book, that are published annually because you can view completed listings and get an idea, not 100% accurate idea; but more accurate than the annual guides, of what things are selling for. If at all possible, you should search the BIN completed sales rather than the auctions because any auction on eBay can have bidiots drive the price(s) higher than the item is worth. You can also see what BIN asking prices that were too high and no one was willing to pay that price.
eBay prices are definitely the bazaar price model - you will occassionally see notes old too high, or some notes squeak through under market, but *overall* it is an outstanding source for what street price is on notes. It is by far the largest market for currency buyers and sellers, and if you subscribe to the concept of wisdom of crowds, what a note goes for on eBay is usually de facto what the market price is...
