The cost of collecting paper money

The ever-growing availability of cheap and varied material from around the world has already brought the hobby well within reach of even those on the tightest budget. This is one collecting field where prices are actually falling in many areas, mainly where new issues are concerned. For this, we can thank the effects of inflation. In comparison to western countries, many countries have steep inflation rates, making their currency sink in value in relation to our own. Thus, their currency notes become ever cheaper for us to obtain. Some typical cases from recent years include Brazil, Peru, Argentina, Russia, Zaire, Iraq, Yugoslavia and Turkey. In fact, we can even obtain notes with denominations of 50,000,000,000 or more for a dollar or two! Another exciting source of very cheap notes has recently emerged: the new ex-Soviet republics. Here is an opportunity to obtain the very first issues of several new republics for mere pennies. One can only imagine the value these first issues will have to collectors in future years.

For under $1 each, you can obtain some beautiful, older notes from earlier this century – the golden age of banknote design. Germany and Hungary for example, both suffered runaway inflation in the first half of this century, rendering their banknotes less valuable than the paper they were printed on in some cases. Nevertheless, they were wonderful examples of the engraver’s art. Even notes from the early 1700’s can still be bought for well under $20 – the Assignat notes of the French Revolution, for example.

Conversely, well-off collectors world-wide, pay large sums of money for single rare notes. Sometimes this will be to fill a gap in a valuable collection. Sometimes it will be with a view to passing the item on to a fellow collector or dealer – for an even higher price. Collectable banknotes are one field where real bargains and quick profits can be made – if you know what to look for. Experience will soon teach you this.