Rare US Banknotes: A Guide to Historical and High-Denomination Currency

Rare US banknotes are a fascinating area of collectibility, with historical significance and high-denomination values making them highly sought after by enthusiasts.

The 1890 Grand Watermelon Note, for example, is one of the rarest and most valuable US banknotes in existence, with only 10 known examples remaining.

Some of the earliest US banknotes date back to the 18th century, with the Massachusetts Bay Colony issuing its own currency in 1690. This early currency featured a unique design and was used to finance the colony's military efforts.

High-denomination banknotes, such as the 1934 $10,000 Gold Certificate featuring a portrait of Salmon P. Chase, were also issued during the early 20th century.

Rare U.S. banknotes can be a fascinating and valuable addition to any collection. Some of the rarest and most valuable banknotes in the United States are the 1891 Red Seal $1,000 Treasury Note, also known as the "Grand Watermelon", which is one of the most valuable pieces of U.S. paper currency.

Only seven examples of the 1891 Red Seal $1,000 Treasury Note exist, making it extremely rare and highly sought after by collectors. The note features General George Meade's portrait on the obverse and an ornate, simplified reverse design compared to the 1890 series. Its rarity significantly contributes to its high value among collectors of rare paper currency.

The 1882 $100 Gold Certificate is another highly valuable note, with collectors seeking these notes due to their limited availability and historical value. The rarity of the $100 denomination from this series makes it particularly desirable.

Discontinued U.S. Denominations are highly sought after by collectors due to their rarity and historical significance. The Three Dollar Bill was a discontinued denomination that was once circulated in the 19th century, but due to limited use and confusion, it eventually fell out of circulation.

The Five Thousand Dollar Bill is another highly valuable and rare denomination that was last printed in 1945 and officially withdrawn from circulation in 1969. It features a portrait of President James Madison on the obverse.

A different take: Us Penny Discontinued

The Five Thousand Dollar Bill was primarily used for large financial transactions between banks and government institutions, making it a unique and valuable piece of U.S. currency history. Some of the most valuable discontinued denominations include the Three Dollar Bill and the Five Thousand Dollar Bill.

Here's a list of some of the discontinued U.S. denominations:

These denominations are highly sought after by collectors due to their rarity and historical significance. The 1882 $100 Gold Certificate is a prime example of a discontinued denomination that is highly valuable due to its limited availability and historical depth.

The two-dollar bill is one of the most recognizable discontinued denominations in U.S. currency. It's relatively uncommon compared to other denominations.

It features a portrait of Thomas Jefferson on the obverse. This is a notable fact, considering Jefferson's significance in American history.

The two-dollar bill has a rich historical significance. This is likely why collectors take such good care of it.

It features an image of the signing of the Declaration of Independence on the reverse. This adds to its historical value and makes it a unique addition to any collection.

If this caught your attention, see: What Was the Highest Denomination of Us Currency

During the American Civil War, a coin shortage led to the creation of Demand Notes, the first paper money issued by the United States for circulation. They were made in denominations of $5, $10, and $20.

Demand Notes were redeemable in coin, making them a temporary solution to the coin shortage. People hoarded their coins, causing a shortage that needed to be addressed.

These notes were issued between 1861 and 1862.

Check this out: Buy Evergrow Coin

National Bank Notes were issued by banks chartered or authorized to do so by the Federal Government.

These notes were of uniform appearance except for the name of the bank, and were issued in three series or charter periods: 1869–1882, 1882–1902, and 1902–1922.

The charter for these notes expired after 20 years, but could be renewed.

The $1, $2, $500 and $1,000 notes were only issued in large size until 1882.

Only three remaining examples of the $500 note are known, with one held privately.

The $1,000 note is unknown to exist.

National Bank Notes were discontinued in 1933.

The denominations issued were $1, $2, $5, $10, $20, $50, $100, $500 and $1,000.

$1 and $2 notes are common from most issuing banks.

National Gold Bank notes were issued by private banks in California between 1870 and 1875.

These notes were redeemable in gold and came in denominations of $5, $10, $20, $50, $100, and $500.

The $5 note is the most common, with 427 examples known.

The $50 note is the rarest, with only 7 examples known.

The $500 note is not known to exist.

National Gold Bank notes are all rare, making them highly sought after by collectors.

For more insights, see: Bank of America Museums on Us Program

Federal Reserve Bank Notes were issued from 1914 to 1934. They were liabilities of the specific Federal Reserve Bank that issued them, not the Federal Reserve System as a whole.

Federal Reserve Bank Notes were smaller in size, just like other notes, after 1929. They were discontinued in 1934.

You can no longer get these notes from banks, as they've been unavailable since 1945.

Rare U.S. Banknotes often gain higher value due to their age and rarity. Certain series and editions, like the 1928 series, are highly sought after by collectors.

The value of a note can be significantly increased by its rarity, as seen with the 1934 series. Limited edition notes are harder to find, making them more valuable.

Collectors pay a premium for rare notes, which can increase their market value substantially. This is why notes with unique characteristics or attributes can be so valuable.

The 1928 series is a great example of a series that captures a moment in history, making it highly valuable.

The design of rare U.S. banknotes is a key factor in their value and appeal. Unique designs can make a big difference, like the 1928 $50 Gold Certificate's gold-colored seal and serial numbers.

These design elements set it apart from other notes in the series. The Grand Watermelon note, a 3 million dollar record-breaker, features large green zeroes on the reverse that resemble watermelons.

The portrait of Union General George Meade on the obverse of the Grand Watermelon note adds to its historical significance and value.

The USA 1890 Grand Watermelon $1,000 Treasury Note is the pinnacle of rare US paper currency.

Only 16,000 of these notes were printed, with two known examples available to collectors today.

Higher denomination notes are generally more valuable, and issues like the $500 and $1,000 Federal Reserve Notes are prized among collectors.

Collector interest in these notes is highly influenced by their rarity and historical context, making them some of the collector community's most sought-after pieces of US paper currency.

Limited edition or hard-to-find notes, like the 1934 series, are more valuable due to their scarcity, significantly increasing their market value.

Rarity and historical context combine to make the 1928 $50 Gold Certificate a highly sought-after piece among collectors.

Readers also liked: 1 Dime Us

U.S. Star Notes are a fascinating aspect of rare U.S. banknotes. They're used by the Bureau of Engraving and Printing (BEP) to replace misprinted or damaged currency before it goes into circulation.

Star notes are printed just like normal notes, except they have a star printed in the serial number. On Federal Reserve Notes, the star is where the block letter normally is, while on Legal Tender notes and Silver Certificates, the star is where the prefix normally is.

Here's a breakdown of where the star appears on different types of notes:

These replacement notes are an important part of the U.S. currency system, ensuring that valid currency makes it into circulation and that collectors have a unique opportunity to own a piece of history.

Certified U.S. paper currency can be authenticated and graded by a third-party service, similar to how rare coins are appraised. This process can significantly impact the value of your notes.

For instance, a PCGS Very Fine 35 $1000 1882 Gold Certificate is known to be quite valuable. The value of a $100 Gold Certificate in Very Fine condition commands a significantly higher price than one in Very Good condition.

Authenticating and grading your notes can be done by reputable services like CGA, CGC, PMG, and PCGS Currency. We appraise and purchase paper currency collections graded by these services, as well as "raw" or non-graded US paper currency collections.

A Choice Uncirculated 63 example of a rare paper currency even set a record by selling for $372,000 in 2020. The grade of Extremely Fine 45 has fetched substantial amounts at auctions, with prices ranging from $201,250 to $253,000 in 2007 and 2011, respectively.

Here are some examples of graded notes and their sale prices:

We provide free appraisals and free paper currency grading for all US currency collections we inspect for potential purchase.

The five-thousand-dollar bill was last printed in 1945 and features a portrait of President James Madison on the obverse.

It was primarily used for large financial transactions between banks and government institutions. This denomination was officially withdrawn from circulation in 1969.

Surviving specimens of the five-thousand-dollar bill are highly prized by collectors and command significant prices in the numismatic market.

Higher denomination notes are generally more valuable, making them a prized possession among collectors.

Issues like the $500 and $1,000 Federal Reserve Notes are especially sought after, contributing to their value due to scarcity.

Denomination is a key factor in determining the value of a note, with higher denominations being more valuable.

Issues like the $500 and $1,000 Federal Reserve Notes are prized among collectors, and their value is impacted by their rarity.

By focusing on these factors, you can build a collection of US paper currency that will become more valuable and have greater potential for future appreciation.