Roberts World Money

Robert's World Money

Bringing you bank notes from around the world

Fundementals of Bank Note Collecting

PREFACE: Banknote collecting is not only a great and interesting hobby, but one that is very educational. If you don’t know where Lesotho is, then you will soon find out when you start your collection. (I always recommend buying a map of the world, put it up and then use pins to mark each country you have a note from) In addition to Geography you will get an insight into the countries you have notes from. Many countries use famous leaders, famous people, or some just put pictures of local people. They also feature famous landmarks, or important structures. Some even use notes as a sort of propaganda showing their achievements or showing revolutionary depictions. Finally, many countries have amazing coloration on their notes and are “works of art” in their own right. When I first started collecting I was told that collecting banknotes gave you a “window to the world” while you may never get to go to that country you get an opportunity to look into their world and what is important enough to them to depict on a banknote. Next time you get a chance, just take a good look at the money in your pocket. What does it say about your country – how has it changed over the years?

Zambia 50 Kwacha. Features the Fish Eagle, the Baobab tree the freedom statue, A foundry and the head of a Zebra.

Guatemala 1 Quetzal Polymer note. Features General Jose Maria Orellana, the quetzal bird, Mayan Priest dressed in ceremonial dress, Mayan writing (very few people can still read Mayan – so don’t know what it says), Government building for preservation of the Mayans.

This is just a small fraction of some of the beautiful notes out there and each note is a history lesson in its’ self.

BANKNOTE COLLECTING 101

I am asked so many questions about the hobby of collecting banknotes and of course there are many websites out there with information on banknote collecting, but very few actually start at the basic level. I remember when I first started collecting banknotes I had to learn as I went along and while that is a good way to learn, it is always nice to understand a few basics. So I hope this helps those who are interested in starting a great hobby and start on a collection that you will be proud to show anywhere.

This is, in relative terms, a fairly new hobby so there is not a lot of information out there for new collectors or people thinking about collecting. I want to add here though that there are people who have been collecting for about 40 or 50 years and there are now some banknote societies forming, but this is in response to the growing number of collectors who are finding out not only what a great hobby this is, but also how interesting and educational it is.

Anyway, I hope this information helps you if you have just started collecting, or are thinking about collecting.

If you do have a question that you feel I haven’t addressed or answered please email me and I will do my best to reply as quickly as possible.

BANKNOTE:

What is a banknote? This is a question I most get asked by new collectors.

Basically, the term banknote refers to a note that has been issued by a bank to use as a form of currency exchange. While there are a few exceptions, which I will go into later (specimens, private banks, special issues etc) this is the easiest way to determine whether a piece of paper (or plastic nowadays) can be classed as a collectible banknote.

For many countries their money has different terms. In the US we say a 1-dollar bill, in England they say a 5 pound note (they only have 1 pound coins so there is no 1 pound note anymore) For easy reference most people use the following terms.

BANKNOTE
BILL
NOTE
CURRENCY
MONEY

WORLD PAPER MONEY.

Of course there are many slang terms, which I think are fun such as:

MOULAR
SPONDOLIKS
DOSH
GREENBACKS

And probably a lot more I am sure.

PICK #:

What is a pick number and why is it needed? This is the second most asked question and while it seems a strange to say that a banknote is pick 111 there is a good reason for this system, and the pick # is used by all banknote collectors and dealers to easily recognize exactly which note is being discussed, sold or traded. The pick # is named for the pioneer in cataloging banknotes (Albert Pick) and his name is used to depict a specific banknote.

As you start collecting you will find this an invaluable way to not only catalog your banknotes, but to help you purchase/trade notes. Actually the pick system goes a bit deeper than the use of the # to determine which note is which – there is also a letter code that depicts the country also. So RO111 is the code for the Romanian Polymer 2000 lei banknote.

Romania 2000 Lei
Scan of Romania pick 111

IN would depict India etc. However, as most collectors and dealers specifically talk about the Country that they are interested in buying the note from the letter system is not widely used. For example if I wanted to buy the above note, I actually would tell the supplier that I want Romania pick 111.

There are a few variations to the pick #, and I will touch on it a little here, but I will cover it later in detail as it can get a little complicated. (information to follow)

To briefly outline some alternatives – you may see a pick # that says pick 111s – the s in this instance denotes that this is the specimen note from this issue (I will explain specimen notes later) In addition you may see pick # 111a or 111b the a & b depicts certain variations to the original issued note. Some changes can be very minor, but enough to warrant an additional letter, but not enough to warrant a new catalog #. As a rule a lot of letters after the # is for signature changes on the note, or maybe new date/year issues. As a beginner this may not be too important, but just so you will understand when you see a pick # that has letters before or after.

Pick # may seem a little complicated at first, but as your collection grows you will begin to appreciate the value of Albert Picks contribution to banknote collecting.

I WANT TO COLLECT A BANKNOTE FROM EVERY COUNTRY IN THE WORLD:

How do I do this?
Certainly, I don’t want to put a damper on your enthusiasm, and as I carry banknotes from most countries around the world (not all I promise) I think this would be a great collection to start. However, one has to be realistic on this – unless of course you have the income of Paul McCartney or some mega famous movie or sports star then financially it may not be achievable very quickly. Of course if you try to collect a banknote from every current country that issue banknotes, then this maybe a little more achievable (even more so now with many countries joining the EEC) but still a daunting prospect. I like to think of collecting banknotes as goal oriented. In the banknote collecting world we are lucky enough to have this world split up into continents, I think it is a much better way to go. Don’t get me wrong, when I first started, guess what, I was going to collect a banknote from every country in the world – existing and now gone (such as Biafra) it did not take me long to realize that my wages did not stretch that far and for some ex-countries (for want of a better word) it is virtually impossible to get a banknote from there. I nearly lost interest as I saw my collecting dream starting to disappear, and I am so glad to this day that I realized that I was making this a challenge not a fun hobby. I still wanted the challenge and to enjoy the hobby, so I decided to concentrate on one particular continent and enjoy collecting the notes from there. It is always hard to guide people on where to start collecting, and I do get asked a lot, once we have dispensed with the every note from every country (I wish I had this advice when I started) I tell them something that seems to contradict what I have said, but basically, I think everyone should start out collecting banknotes from any country that has money they see they like. Once you get a few notes in your book then maybe see what sort of notes you are more interested in a go from there.

Anyway, this section could be a complete book in itself and for ease of reading and not boring you too much I have listed just a small selection of the types of collecting you may want to consider. Finally, if like me you want the challenge and you want a definitive answer – start collecting banknotes from Australasia and Pacific Ocean the notes are beautiful and it is a continent with not many countries.

I will also add a list of all current countries and all ex-countries as soon as possible broken down into continents.

Possible collecting goals.

COMPLETE CONTINENTS.
BANKNOTES DEPICTING BIRDS.
BANKNOTES DEPICTING ANIMALS.
BANKNOTES FROM COLONIAL COUNTRIES.
BANKNOTES FROM ONE SPECIFIC COUNTRY.
BANKNOTES FROM COUNTRIES NO LONGER IN EXISTANCE.
BANKNOTES FROM EMERGING COUNTRIES.
INFLATION BANKNOTES.
POLYMER BANKNOTES.

There are many many possibilities such as ship notes, bridge notes etc……… I will try to come back later and explain these categories in more detail but if you have any questions then please contact me. AGAIN, I would suggest at first look at some notes that are on offer and if they fit your budget and you like them you should buy them. They are always nice to have and to start showing people. Most people have no idea about this hobby and even less about the beautiful banknotes that different countries produce. You will be embarking on a hobby that amazes people and garners a lot of interest.

WORD OF CAUTION ABOUT STARTING A COLLECTION.

You may see for sale what looks like a great bargain – some sellers will sell you a set of 100 banknote from different countries at what seems a great price, compared to buying them individually. This is NOT a good idea for many reasons.

Firstly, while they maybe genuine UNC notes (see next section on grading) you will get many duplicates from the same country. In addition you will get the notes that nobody really wants – the smaller, low denomination notes are nice to have in a collection if you want every note from that Country – but they will be cheap and easy to find anywhere. Secondly, it may be worthwhile purchasing one set, but when you buy the second set you will find 80 to 90% of the same notes from the other set you brought. They use a couple of different nicer notes to showcase and pad it out with the same sort of notes. These packages contain lots of notes from Tajikistan, China food coupon notes, Kyrgyzstan, Indonesia etc. Basically what happens is that you end up with only a few countries with duplicate notes and I don’t want to see you put off collecting from the start.

There are so many beautiful notes out there at a reasonable price and basically these are not the notes to start you collection with. They say an instant collection, it is my experience that they put a lot of people off collecting or give them a bad experience of buying banknotes.

GRADING.

International Bank Note Society Grading Standards:

I make no bones about taking this directly from the IBNS website. This is, to me, the definitive grading standard. I hope the organization does not mind (I am a member, and I would encourage you to join as some stage – they have one of the best world paper money publications you will ever see – full color with new banknote issues and some great articles) – sorry commercial over.

*Everyone has their own interpretation of what a certain grade means. When buying from dealers, make sure they follow strict IBNS standards. (My comment – I can not stress this too much.- I try my very (and honest) best to adhere to these guidelines when I sell, and I give a 21 day money back guarantee)

Uncirculated --- A perfectly preserved note, never mishandled by the issuing authority, a bank teller, the public or a collector. Paper is clean and firm, without discoloration. Corners are sharp and square, without any evidence of rounding. An uncirculated note will have its, original, natural sheen.

NOTE:

(My comment – many newer issues now also have a crimped area by the security strip – these are still classed as UNC – however, many dealer will reveal this fact – the most recent note I can remember like this is the new Yemen Arab Republic 250 Rial note)

About Uncirculated --- A virtually perfect note, with some minor handling. May show very slight evidence of bank counting folds at a corner or one light fold through the center, but not both. An AU note cannot be creased, a crease being a hard fold which has usually "broken" the surface of the note. Paper is clean and bright with original sheen. Corners are not rounded.

Circulated

Extremely Fine --- A very attractive note, with light handling. May have a maximum of three light folds or one strong crease. Paper is clean and bright with original sheen. Corners may show only the slightest evidence of rounding. There may also be the slightest sign of wear where a fold meets the edge.

Very Fine --- An attractive note, but with more evidence of handling and wear. May have several folds both vertically and horizontally. Paper may have minimal dirt, or possible color smudging. Paper itself is still relatively crisp and not floppy. There are no tears into the border area, although the edges do show slight wear. Corners also show wear but not full rounding.

Fine --- A note which shows considerable circulation, with many folds, creases and wrinkling. Paper is not excessively dirty but may have some softness. Edges may show much handling, with minor tears in the border area. Tears may not extend into the design. There will be no center hole because of excessive folding. Colors are clear but not very bright. A staple hole or two would not be considered unusual wear in a Fine note. Overall appearance is still on the desirable side.

Very Good --- A well used note, abused but still intact. Corners may have much wear and rounding, tiny nicks, tears may extend into the design, some discoloration may be present, staining may have occurred, and a small hole may sometimes be seen at center from excessive folding. Staple and pinholes are usually present, and the note itself is quite limp but NO pieces of the note can be missing. A note in BG condition may still have an overall not unattractive appearance.

Good --- A well worn and heavily used note. Normal damage from prolonged circulation will include strong multiple folds and creases, stains, pinholes, and/or staple holes, dirt, discoloration, edge tears, center hole, rounded corners and an overall unattaractive appearance. No large pieces of the note may be missing. Graffiti is commonly seen on notes in G condition.

Fair --- A totally limp, dirty and very well used note. Larger pieces may be half torn off or missing besides the defects mentioned under the Good category. Tears will be larger, obscured portions of the note will be bigger.

Poor --- A "rag" with severe damage because of wear, staining, pieces missing, graffiti, larger holes. May have tape holding pieces of the note together. Trimming may have taken place to move rough edges. A Poor note is desirable only as a "filler" or when such a note is the only one known of a particular issue.

HOW DO I STORE AND/OR SHOW/DISPLAY MY COLLECTION?

This is an extremely good question, and when I first started there seemed to be no help out there (remember of course I am old – pre computers) however, the best option I have found (there are a few others, but my wife didn’t appreciate me selling the house to buy them – don’t know why) are the BCW - 3 note Acid Free PVC pages. These are made to fit the 3 ring binders (I know some countries use 2 ring binders and other types of binders, and for you I may not be much help) that you can buy at any office supply place. These display sleeves are excellent as you can show 3 notes at a time and turn over to see the back. They are very strong and hold most size notes (there are a few exception with some of the really big notes like the Thailand commemorative 60 Baht note) but for 95% of the notes you will purchase this will work really well.

I love showing my collection to anyone I can pin down long enough to look and this system is a great way to let them see your collection with out them handling the notes. All joking apart, when I tell people I collect banknotes they do look at you strangely at first. However, when they see some of the beautiful and amazing notes they are not only impressed but interested in how you get them and how you started. With me now they always seem to want a sample note……. Probably why I am still poor.

a box of 10 sleeves
Poor photo of a box of sleeves (you can buy in 25, 50, or box of 100)

There are other options such as single note holders, these come in 2 sizes (that I am aware of) and 2 types. One type is the semi rigid sleeve and is a nice holder for the money – this is what I mainly use when I take my notes to shows. The others are rigid sleeve and are more heavy duty and while they are great for storage and protection, this are not so easy to display in a box and are not so easy to get notes into. You have to be very careful not to damage the note putting it in – but of course once in, it will probably stay there.

Single currency holder – the bottom section of picture shows the size and type.

I have also seen cheap crystalline plastic sleeves, which work for shipping notes between two pieces of strong cardboard; however, this is not a great option for storing notes long term and offers no protection to being creased.

For more information please feel free to contact me. I do sell these items, but I am happy to help with your needs; I am not expecting you to buy what I use or stock.

Is Banknote collecting a good investment?