People across the globe spend their free time collecting money. While some might think that collecting money encompasses keeping a checking or savings account, there’s so much more to currency than just banking. Collectors that clock serious time researching, seeking, and finding currency are called numismatists. Then there are those who specialize in collecting paper money and they are referred to as notaphilists. Find out more in this article about notaphily and how Colonial can help with starting or expanding your world paper money collection today.
Notaphilists and Notaphiles
Those well versed in the history and collecting of paper currencies are known as notaphilists, though they are often simply referred to as notaphiles in the trading community. These specialists know the ins and outs of paper currency’s history.
The coin controlled currency for several centuries, but China brought us the early iteration of the paper notes we use today. Since then, notaphilists have kept close tabs on world paper money to preserve its history and study rare issue notes.
Investments and Strategies
Some collectors pick up pieces of sets or high-interest issues as a pastime. Others use systematic strategies and tight-knit networks to hunt down prized acquisitions to complete their investment portfolios. Typically, people choose to invest in paper currency for many different reasons, including but not limited to:
- Long-term profits
- Versatile liquidity
- Private accumulation
- Affordability
- High demand
- Diversifies portfolio
- Historical value
Collections and Collectibles
Professional notaphilists generally seek out sets of paper currency rather than piecing finds together like beginning collectors. The practice of set building is well known in notaphily communities, with trade shows, auctions, physical and digital platforms dedicated to paper currency sales alone. Affordability is no longer considered an asset for building a collection over time, but how to best negotiate the purchase of a whole set.
Series sets are the most common type of collector sets because paper currency, different from coins, is released in series that last several years, rather than by date – for example, the Birds of Canada series that appeared between 1986 and 1993. Collectors can narrow down their series sets into signature sets by cross-referencing dates and the signatures of government officials on the notes – for example, Birds series notes signed by Gordon Thiessen and Bernard Bonin, Bank of Canada governor and senior deputy governor.
Face and Numismatic Value
The value of a collector’s portfolio depends on the type of sets and the diversification of the paper currency. Typically, since collectible world paper money may or may not have its original intrinsic value, two markers determine the currency’s market value.
Face Value
Face value is the initial value set during the production of the money. It is important to remember that some standard-issue currency in production after a specific date still has its face value. It can be used to purchase goods and services no matter how unusual the denomination. However, just as with any investment, there is risk assessment and no guarantee that your purchase will ever exceed the initial bank value. In some cases, the paper currency might lose liquidity; some banknotes have been since deemed ineligible for precious metal exchange.
Numismatic Value
Multiple factors influence a bank note’s current value. First, if the issuing government has not demonetized the note, it’s still worth at least its face value. Whether the note is legal tender or not, a series of considerations will determine its overall investment value, including but not limited to:
- Condition
- Rarity
- Circulation
- Eye appeal
- Certification
- Demand
Whether you’re just starting as a notaphilist or you’re deep into the details of collecting rare notes, Colonial Acres Coins can help with your search. With a wide variety of banknotes, you can easily start and grow your collection. Contact the professionals at Colonial for more information.