Expert: PAPAJACK - 8/1/2007

Question
QUESTION: I have some old currency of all denominations $100 and under from about WWII on.  How do I find out the value of these now and a list of potential buyers?

ANSWER: Hello Jay,          

I can't help you with potential buyers.
I can direct you to dealers in your area. They would not pay as much as a collector would but you would be able to liquidate your notes all at once.

For the value of the notes there are many factors. Like coins it is valued on its grade and on how rare a note is.
The premium for most notes after 1945 is not that high. Unless there is a star * in the serial number or some other qualities like being other than a federal reserve note or rare issue it needs to be in "Crisp Uncirculated Condition".

As an example looking the $100 dollar Federal Reserve notes from 1950 to present I only see the 1950E issue selling for double its face value to $500 or so depending on the grade.  The common ones are only really collected in crisp uncirculated condition due to how plentiful they are.  

The condition and rarity for the condition are the big factors. Since grading paper is so involved, the easiest way is to let a dealer or local shop take a look at it.  Notes cannot be properly evaluated without seeing it.
Look for these flags and separate your notes for evaluation.
What does it say across the top (above the portrait) United States Note, Federal Reserve Note, Silver certificate?
Since most of these notes are not uncommon it depends on things like stains and folds its value will change.

As I said paper money is hard to grade without experience.

Here is a general guideline for paper money below is a little long but a good read.

When grading paper money it is essential to first determine if the note may be safely removed from its holder without causing any damage due to brittleness, unseen tears, glue remnants etc. Then, carefully remove the note and holding it lightly, consider the general appearance, amount of wear, the hue and intensity of the color of both the face and back.
Determine a preliminary grade. If the note is Fine or better it should be held obliquely in line with a good light source. Move it around at various angles, such that the light will reflect off the note highlighting any ripples, counting creases, heavy creases, pressed out creases, tears, pinholes cancellations, repairs or fading. Mastery of this technique is mandatory in successfully grading paper money. When these aspects have been carefully considered, decide if these are "normal" for the preliminary grade which was determined.
If not, hen the grade may have to be reduced depending on the number and severity of the defects, or the defects will have to be listed in addition to the overall grade, followed by any unusual defect, than to downgrade the note. Careful inspection to determine the correct grade will lead to greater trust and confidence between buyers and sellers of notes.

UNCIRCULATED - UNC: A perfect note. Crisp and clean as issued and without any folds, creases, blemishes or discoloration. Colors have original hue and brightness. Some issues may have ripples [as made]. Mention must be made if the design is not perfectly centered with usual width of margins.

ABOUT UNCIRCULATED - AU: Similar to Uncirculated but with the allowance of a light fold [usually a vertical center fold] or two or three very light counting folds, but not both. Counting creases resulting in broken paper fibbers, or any other creases, reduce the grade depending on their number and severity. The practice of using "almost" and "about" to designate a slightly lower or a plus in the case of lower grades to designate in-between grades is common, e.g. "almost AU" or "EF plus". Notes not perfectly centered with width of margins must be so described.

EXTREMELY FINE - EF: Similar to Almost Uncirculated but the center fold, vertical or horizontal, may be a crease, i.e. paper fibbers are broken, or there may be up to three heavy counting folds [not creases] or two light creases, but no combination of the above. The centering and margins if not perfect must be noted.

VERY FINE - VF: A fairly crisp and clean note. It may have several major and minor creases and folds, and some evidence of wear especially along the edges or at the corners. There may be some slight decrease in hue and intensity of the colors. The design in the creases should not be worn off.

FINE - F: A note with considerable evidence of circulation. Numerous creases and folds, but a small degree of firmness remaining. Usually fairy soiled and the hue and intensity of the color are slightly reduced. There may be a slight amount of the design worn off along the major creases. Creases should not be worn off.

VERY GOOD - VG: A heavily circulated note but with all the major design still visible. Usually limp with no crispness or firmness, quite soiled, hue and intensity of the color will be faded or altered. A moderate amount of the design may be worn off along the major creases or in the "counting creases" areas. Numerous other defects may apply [see list below]

GOOD - G: Soft and very limp, often with tears and small pieces missing. Usually some of the major design is worn off. Note may be quite dark in appearance. Manuscript signatures, dates and sheet numbers may be worn off or entirely faded out. Often have numerous tears and other defects.

FAIR - F: Similar to GOOD, but larger pieces missing. Manuscript signatures, dates and sheet numbers may be worn off or entirely faded out. Often have numerous tears and other defects.

POOR - P: As a fair note, but with a major portion of the note torn off or the design obliterated. Often numerous tape repairs and is generally collectable only because of rarity.

In addition, to accurately grade a note it is necessary to consider any additional impairment. These should include:
1. Minor counting creases or edge defects, especially for EF and AU grades.
2. Tears, pinholes or signature perforations.
3. Stains, smudges, crayon marks or writing.
4. Missing corners, cut and punch cancellations or edge defects.
5. Rubber stamp impressions.
6. Any repairs, such as with sticky tape, scotch tape, stamp hinge, etc.
7. Chemical damage, paste or glue from attachment to a page.
8. Poorly centered or badly trimmed edges.

A note with portions missing should be graded as if it was a whole note, and then the amount missing should be fully described.

There are Proof, specimen and essay notes are commonly accepted as being in uncirculated condition, otherwise, they should be described as impaired with the type and degree of impairment stated.

Only after the grade is determined can you use a price guide, or can it be properly appraised.

The main Grades are FINE, EXTRA FINE and CRISP UNCIRCULATED.

Currency is graded according to the state of preservation.
To my knowledge most sell for only $1 to $30 dollars over the face value in circulated grades. It may be worth more in the future.
In general for my notes, if it is heavily circulated or part is missing I may save it as a novelty or get it to a young collector for their starting collection. There were too many printed and surviving to be in a professionals collection in less than crisp uncirculated condition.
I do know these older pieces of currency in collectable condition are worth more than face value to a collector but sometimes not too much more. But to arrive at an actual value for your holdings you need to grade them prior to using a price guide.

Please remember to rate this answer. And check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck

PapaJack

---------- FOLLOW-UP ----------

QUESTION: Hi thank you for the oustanding response.  What if there is a star in the serial #?  What does that mean?  I have a $50 1950 bill with a green star after the serial # that begins with an A.  Approximate value?  The condition is about Fine I would say.  Thank you!

Answer
Hello again Jay,          

A star note is printed when due to a mishap at the Bureau of Printing caused a serial number to be destroyed. They print a new note with the same serial numbers but place a star there to signify that these notes are a replacement of the original printing run.  
Since there are so many less than regular issue they bring higher values than the same issue in the regular series.

The 1950 series ran from 1950 to 1963 with series suffix letters 1950-A to 1950-E. A 1950 $50 dollar Federal Reserve note with no letter should be signed by Clark and Snyder.
They are still plentiful in less than circulated condition like yours is described. They were made for all 12 Federal Reserve districts as well with Minneapolis being the rarest.

There is no set price list for the grades below Crisp-Uncirculated. Yours may only be valued from $80 to $300 depending on which Federal Reserve Bank it is and present collector demand for the note.

I hope this information helps. Please remember to rate this answer. And check the nomination box on the rating page below any comments you may have.

Good Luck

PapaJack