The Ultimate Guide to Us Currency Collecting

Collecting US currency can be a fascinating hobby that's both fun and rewarding. With a rich history spanning over two centuries, there's a vast array of notes to explore.

The first paper currency issued by the US government was in 1862, during the Civil War. This was the first time paper money was used to finance a war effort.

From its humble beginnings, US currency has evolved to include a wide range of denominations, designs, and security features. You can find notes with iconic images of American leaders, landmarks, and even famous paintings.

One of the most interesting aspects of US currency collecting is the variety of errors and misprints that have occurred over the years. These mistakes can make a note highly valuable and sought after by collectors.

First and foremost, you need to know that U.S. paper money comes in two distinct sizes, large and small, each with its own unique characteristics and history.

Large-sized notes were approximately 7 3/8 inches by 3 1/8 inches and were often elaborately designed with intricate artwork and portraits of important figures.

To start collecting U.S. currency, you'll want to familiarize yourself with these sizes and their differences.

In 1929, the Treasury Secretary approved a recommendation to introduce a new series of small-sized U.S. currency, which measured approximately 6 1/8 inches by 2 5/8 inches, allowing for more efficient production.

U.S. paper money comes in two distinct sizes, each with its own unique characteristics and history.

Before 1929, all U.S. paper money was printed as large-sized notes with dimensions of approximately 7 3/8 inches by 3 1/8 inches.

These large-sized notes were often elaborately designed, showcasing intricate artwork and portraits of important figures.

The large-sized notes remained legal tender, but were gradually withdrawn and replaced with their smaller counterparts.

The smaller size allowed for more efficient production and became the standard for U.S. paper money that we still use today.

The first release of the smaller size notes, known as Federal Reserve Notes, was in 1914.

For collectors, both small-sized and large-sized U.S. paper money offers a unique look into the history of currency and the various factors that have influenced its design and production over time.

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Starting a collection can be an exciting and rewarding experience. You can begin by setting a budget, which is a crucial step in getting started. Determine how much you are willing and able to spend on your collection.

Identify your interests and what type of collection you want to start. For example, you might be interested in coins, stamps, or sports memorabilia. Research your chosen topic to learn more about it.

Start small by purchasing a few items to get a feel for the hobby. This will also help you learn about the condition, rarity, and value of the items.

There are many types of US currency that collectors can explore. Obsolete Bank Notes were issued from 1782 until 1866 by most of the banks across the country.

Legal Tender Notes or United States Notes were first issued in 1862 to pay expenses incurred by the Civil War. They were a crucial part of the country's financial system during that time.

National Bank Notes were issued from the 1860s to the 1930s by over 12,000 national banks throughout the US and its territories. They're a popular type of currency among collectors due to their unique designs and historical significance.

Here are some of the main types of US currency:

Fractional currency, on the other hand, was issued during and after the Civil War due to a shortage of coins. It was printed in five issues in denominations of 3, 5, 10, 15, 25, and 50 cents.

Collecting by Denomination is a unique way to approach currency collecting. The high denomination notes of U.S. paper money are considered rare and highly collectible.

These notes feature portraits of prominent individuals from American history, such as William McKinley, Grover Cleveland, James Madison, and Salmon P. Chase. They were no longer printed by the Federal Reserve since 1945.

The $500 and $1000 large denomination notes can be easily found in the numismatic market today. The value of the $5000 and $10,000 notes, however, is too far away from the basic face value.

Collectors may focus on collecting all types of U.S. Currency for one specific denomination.

Collecting U.S. currency by type can be a fun and rewarding experience.

The first U.S. paper money was printed in the 1690s, but the concept of collecting by type is easier to approach by focusing on specific categories of notes.

Obsolete Bank Notes were issued from 1782 until 1866 by most banks across the country.

These notes are a great starting point for collectors interested in early American currency.

Legal Tender Notes, also known as United States Notes, were first issued in 1862 to pay expenses incurred by the Civil War.

They're a significant part of U.S. currency history and a great addition to any collection.

National Bank Notes were issued from the 1860s to the 1930s by over 12,000 national banks across the U.S.

These notes are highly sought after by collectors due to their rarity and unique designs.

Federal Reserve Bank Notes were authorized by the Act of December 23, 1913, and debuted in 1915 with a design that shared elements with both National Bank Notes and Federal Reserve Notes.

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They're a great choice for collectors interested in the early days of the Federal Reserve System.

Treasury Notes, also known as Coin Notes, were issued in a short period with series of 1890 and 1891 and were backed by precious metals.

They can be a great addition to a collection focused on early American currency.

Gold Certificates were first authorized under the Legal Tender Act of 1863 and were redeemable for a certain amount of gold coins.

They're highly prized by collectors for their vibrant and ornate designs.

Silver Certificates were issued from 1878 until 1964 and were backed by silver bullion in the treasury stockpile.

They're a popular choice among collectors due to their unique designs and colors.

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Fractional Currency is a type of U.S. paper money that was issued during and after the Civil War due to a shortage of coins. It was printed in five issues between 1862 and 1876.

These notes were unique in that they were fractions of a dollar, with denominations of 3, 5, 10, 15, 25, and 50 cents. They had distinctive designs, which is part of their appeal.

A basic Fractional Type set consists of 24 notes, with a 25th note being a rare specimen known as the Grant/Sherman specimen. This set is a great starting point for collectors.

The print quantities for the five issues were generally large, making many of these notes easily available at modest prices in circulated condition.

Small Size Type notes were issued starting in 1929 and are still being printed today. They have dimensions of approximately 6 1/8 inches by 2 5/8 inches, which allowed for more efficient production and became the standard for U.S. paper money.

These notes include various types, such as small size Legal Tender Notes (United States Notes), Silver Certificates, Gold Certificates, Federal Reserve Bank Notes, and Federal Reserve Notes. Some collectors also seek out Star notes (replacement notes) and varieties like Mules and Light green/Dark green seals.

Small Size Type notes are widely available and can be a great starting point for collectors. They offer a unique look into the history of currency and the various factors that have influenced its design and production over time.

The dimensions of Small Size Type notes are a notable difference from their larger counterparts, which measured approximately 7 3/8 inches by 3 1/8 inches.

Circulated documents, such as notes, have suffered damage due to use in commerce or mishandling.

The majority of U.S. notes ever printed have been circulated, which is why wear, tears, folds, and stains are common.

These notes are graded based on their preservation, with Poor (P-1) being the lowest grade and About Uncirculated (AU-50) being the highest.

The grades in increasing order of preservation are Poor, Fair, About Good, Good, Very Good, Fine, Very Fine, Extra Fine, and About Uncirculated.

The same adjectival grades given to circulated coins are used to grade circulated documents.

Rare paper money has consistently outperformed traditional investments over the past 30 years, making it an attractive option for those looking to diversify their portfolio.

Investing in rare paper money can be a private and confidential matter, as it can be accumulated and stored privately, just like rare coins. This makes it an appealing option for those who wish to keep their investments discreet.

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Olevian Numismatic Rarities recommends purchasing certified rare banknotes, as they provide a guarantee of authenticity and a clear guide to determining the scarcity of graded notes. Certified notes are also more readily sold, with thousands being sold daily "sight unseen".

The demand for rare paper money exceeds the supply, making it a potentially lucrative investment opportunity. This is due to the scarcity of many paper money issues, as well as the finite supply of historic banknotes that are no longer produced by the U.S. Treasury.

Investors can expect to see prices for rare paper money rise considerably as demand continues to increase. This is particularly true for notes that are in high demand, such as the 1896 "Educational Series" of silver certificates.

Building a portfolio of rare paper money can be a great way to diversify your investments and reduce overall volatility. By including paper money in your investment portfolio, you can potentially enjoy added security and peace of mind.

The value of a rare banknote is determined by the collector value, not the face value. This is especially true for state-issued notes and other obsolete paper money that no longer has a face value.

Rarity is a major factor in determining the value of a rare note. The more rare the note, the more valuable it is.

The condition of a note is also crucial in determining its value. A note in good condition is worth more than one that is worn or damaged.

The demand for a particular note can also impact its value. If many collectors are looking for a specific note, its value will increase.

Some notes are more valuable than others due to their historical significance. For example, notes printed by Benjamin Franklin or Paul Revere are highly sought after.

The Continental Currency issued from 1775 to 1779 is a great example of a note with historical significance. Its value depreciated over time, but notes signed by signers of the Declaration of Independence or members of the Continental Congress are highly valuable.

Certification by a leading certification service can increase the value of a note and make it easier to sell. These services publish monthly population reports that detail the number of notes that have been certified in different grades and issues.

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The condition of a banknote is a major factor in determining its numismatic value. It's what sets the best examples apart from the rest.

Grading is a classification system that determines the level of preservation of a banknote. Paper money is graded on a 70-point scale, with 1-59 representing circulated grades and 60-70 representing uncirculated grades.

The higher the grade, the more valuable the banknote. This means that the best examples are in the greatest demand and bring the highest prices.

Investors should choose banknotes with above-average eye appeal for the grade, as these notes are in the highest demand and bring the highest prices. This includes attributes like paper quality, front and back alignment, and ink quality.

Uncirculated banknotes, also known as "uncirculated" bills, are untouched and crisp, and are worth more than circulated money.

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If you've got a few 2 dollar bills in your collection, it's essential to store them properly to maintain their value. Store them in a humidity and temperature-controlled area to prevent paper breakdown.

Higher humidity or temperature fluctuations can cause paper to break down, reducing the value of your collection. I've seen this happen to friends who stored their bills in humid attics or basements.

You can store your 2 dollar bills in individual plastic sleeves, similar to collecting and storing baseball cards. This keeps them safe and sound.

If you want to be able to flip through your collection, store your banknotes in a paper money album. These albums can hold your entire set in one place.

For particularly rare bills, consider displaying them in a frame with museum glass to fully protect them from light damage. This is a great way to show off your finds in your home décor.

Here are some popular storage methods for paper money collections:

Collecting specialized currency can be a fascinating hobby, and one of the most interesting types is the Obsolete Bank Notes, which were issued from 1782 until 1866.

These notes were unique to each bank and can be a great addition to any collection.

If you're interested in collecting currency from a specific time period, you might want to look into the National Bank Note, which was issued from the 1860s to the 1930s by over 12,000 national banks.

The Federal Reserve Bank Note, authorized by the Act of December 23, 1913, is another type of specialized currency worth considering.

Its design shared elements with both the National Bank Notes and the Federal Reserve Notes of the time, making it a great find for collectors.

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Colonial and Continental Currencies are fascinating examples of early American paper money. The Massachusetts Bay Colony issued the first U.S. Colonial Currency in 1690 to fund a military expedition to Canada.

Benjamin Franklin printed some of the Pennsylvania, Delaware, and New Jersey notes, which can enhance their value. Paul Revere, the famous patriot and artist, also printed some of the Massachusetts and New Hampshire notes.

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Between 1690 and 1788, all 13 original colonies plus Vermont issued currency denominated in pounds, shillings, and pence. Continental Currency, issued from 1775 to 1779, was denominated in dollars and payable in Spanish Milled Dollars (Pieces of Eight).

Over 11 issues of Continental currency were authorized by the Continental Congress, each with a different date on the notes. The value of Continental currency depreciated over time, with some notes selling at $250 for $1 in specie (coins) on October 9, 1787.

Some signers of Continental currency were also signers of the Declaration of Independence or members of the Continental Congress, which can enhance the value of those notes.

Large Size Type notes were issued from 1861 until 1929, when the U.S. Government switched over to small size notes.

These notes include some of the most artistic and beautifully designed notes ever issued by the U.S. Government. They're a popular category among collectors, and many eventually add a couple of favorite U.S. large size type notes to their collection.

Large Size Type notes include Demand Notes, Legal Tender Notes (United States Notes), Silver Certificates, Treasury (or Coin) Notes, Federal Reserve Bank Notes, Federal Reserve Notes, and Gold Certificates.

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National Bank Notes are a fascinating type of currency that can be collected and valued. They were issued by over 12,000 national banks throughout the U.S. and in U.S. territories between 1863 and 1935.

These notes were backed by U.S. bonds, which meant that national banks had to deposit a certain amount to the U.S. Treasury and could issue their own currency up to 90% of their holdings. This unique system attracted many collectors in the numismatic community.

One popular way to collect National Bank Notes is by the state or bank from which they were issued. This allows collectors to focus on notes from their hometown or city, making it a fun and personalized way to collect. Many collectors avidly collect notes from their home town, county, or state.

There were four distinct Series of Large Size notes, with 9 different Types, issued between 1863 and 1929, and one Series of Small Size notes (with 2 different types) was issued between 1929 and 1935.

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Here are the different types of National Bank Notes that were issued:

Postal Notes were created in 1883 as a way for people to send small amounts of money to distant places.

They were a specialized money order successor to U.S. Fractional currency and cost just a three cent fee.

Between 1883 and 1894, some 70.8 million Postal Notes in six Types were issued.

These notes were used as intended and then destroyed, but a current census lists almost 2,200 surviving U.S. Postal Notes for collectors to enjoy.

Collecting sets of US currency can be a fun and rewarding experience. There are many different types of sets, each with its own unique characteristics.

One of the most popular types of sets is the signature set, which attempts to collect all the notes bearing a particular set of signatures. Since 1861, there have been about 80 different signature combinations on US paper money.

Signature sets can be a great way to learn about the history of US currency, as they often highlight the individuals who played a significant role in shaping the country's financial system. For example, one signature set might contain an example of every note type signed by both Register of the Treasury John Allison and Treasurer F. E. Spinner.

Origin sets are another type of collection that can be very interesting. These sets are composed of notes bearing the name of a particular city or bank, such as the Mellon National Bank of Pittsburgh, PA.

Certified rare banknotes are a safe investment choice, with leading certification services guaranteeing authenticity and exact grade.

These services publish monthly population reports detailing the number of notes certified in different grades and issues, which helps determine the scarcity of graded notes.

Certified notes are more readily sold, with thousands sold daily "sight unseen", a testament to the trust the industry places in certification services.

Investors can reference the latest price guide to determine the market value of their certified notes, which have a guarantee of authenticity and exact grade printed on the note's label.