Collecting rare United States paper money, particularly older large-size notes and high-denomination bills like the 1934 $500 and $1,000 Federal Reserve Notes, has become increasingly popular and valuable. These items combine historical significance with rarity, making them prized by collectors. Collectors are drawn not only by the notes' scarcity but also by their artistry and historical context. This, combined with a limited supply, has driven prices upward, making U.S. paper money an attractive asset for both enthusiasts and investors.
The last five years have seen a remarkable rise in the market value of U.S. paper money, encompassing both large-size notes (1862-1929) and small-size notes (post-1929). Despite these gains, we argue that paper money remains undervalued compared to other collectibles like rare coins or baseball cards, which routinely sell for six or seven figures.
Some Factors Driving Value Growth
Scarcity
High-grade U.S. paper money is exceedingly rare compared to coins or baseball cards. The survival rate of older notes, especially in high grade conditions, is extremely low due to their fragile nature and historical usage.
Aesthetic Appeal
Many large-size notes feature intricate designs, allegorical figures, and vivid imagery—artwork that collectors often describe as "lost to the ages." For example, the "Educational Series" of the 1890s is celebrated for its detailed engravings and artistic sophistication. Compared to today's legal currency, these notes are viewed as far superior in craftsmanship
Price Trends
Recent auctions have underscored the market’s potential:
- A 1934 $10,000 bill sold for $480,000 in 2023, a dramatic increase in value.
- Large-size notes, like the $1,000 Legal Tender note from 1880, have fetched over $200,000
- Even relatively common issues, like 1934 $1,000 notes in excellent condition, regularly sell for $10,000-$35,000.
Some Popular Examples Of The Beautiful United States Currency From Days Past
1. 1882 Gold Certificate
2. 1886 Silver Certificate, known as The Silver Dollar Note
Perhaps our favorite note--this one was redeemable in silver, as illustrated by the wonderful reverse. We love this rarity; it will continue to escalate in value because of its beauty and of course scarcity in all grades. (we have to show both sides here).
3. $1.00/$5.00 Silver Certificate--Educational Note
4. 1899 $5 silver Certificate "Onepapa" Indian Chief
Redeemable in Silver Bullion. Among the most popular notes in the hobby. The Wild West!
5. 1901 Legal Tender "Bison" Note.
The Heyday of the Wild West. The Buffalo with portraits of Lewis and Clark.
6. 1918 $2 Federal Reserve Note--The Battleship Reverse.
The reverse depicts a large Battleship, emphasizing our naval strength after German u-boats torpedoed British ships and threatened our own, thus necessitating our entrance into WW 1. An interesting and historic piece of artistry.