How to Collect Banknotes

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A Brief History of Banknote Collecting

Although paper money has existed for many hundreds of years, it began reaching high popularity in the mid 1970's. Prior to this there were many coin collectors and not nearly as many banknote collectors. This is attributed to the fact that coins, historically, had an intrinsic value of their metallic content, while paper money did not. Furthermore, paper money did not always possess the qualities that it does today: color, history, design, etc. Older notes are much less visually appealing, compared to some of their modern counterparts. And though not all issuers and nations make complete use of modern printing technology to produce a banknote which may be described as beautiful, most countries make it a point of pride to use banknotes to reflect their environment, culture, and history, making these paper bills tidbits of art and academic interest.

How Do I Start Collecting Paper Money?

Collecting paper money in itself is extremely simple. All you have to have is the will and the interest. After that, its just a simple matter of acquisition. But, to make things more interesting, or at least more manageable, there are a few questions you should ask yourself. For example, you should ask yourself how serious you are about collecting banknotes. Is this going to be a whimsical hobby, or do you think it will become something more than that? If you are planning on truly getting involved in the hobby other questions may pop up. Where do I get these banknotes? How many should I collect? How much is this going to cost me? These questions are easliy answered. With the advent on the internet, banknotes can be acquired very easily. The size of your collection is totally up to you, as is the total cost. Very interesting collections can be started with only a few minutes on the internet, and a few dollars spent. The answers particular to your collecting will come and change with time.

Which Banknotes Should I Collect?

Yes, there is truly a large selection of banknotes to be collected. Ofcourse, no one will ever own them all and so some collectors have limited their collections based on a few criteria. For example, you can limit your collection using any of the following factors: country, continent, specimen banknotes, commemorative banknotes, foreign exchange certificates, military money, guerilla money, error notes, currency types (ie. dollar, dinar, etc.), denomination (ie. 20, 100, etc.), material (ie. paper, polymer, etc.), era (ie. 1960+, World War II, etc.), year, and factors which are even more specific, such as banknotes featuring a certain dignitary (ie. Queen Elizabeth II), banknotes featuring wildlife (all or specific, such as birds), or banknotes featuring certain items (such as ships, musical instruments, or ancient artifacts). For most of us, sadly, the major factor will be affordability. If you are going to make such a decision, do invest a little time in research. You do not want to begin a collection that you will not be happy with. In the end, the banknotes you collect are strictly a matter of personal preference.

How Do I Take Care of My Collection?

Proper care needs to be taken to protect your collection, whether it is simply a hobby to enjoy, or an investment in your financial future. Damage to banknotes devalues them incredibly, therefore they need to be stored in a manner that will prevent all manners of damage: bent corners, discoloratin, stains, tears, folds, creases, holes, graffiti, and anything that degenerates their condition. Banknotes need to be stored in a dry place, away from direct light, and in a manner that keeps them crisp and protected. If one can afford it, it is encouraged that you purchase proper banknote collectors albums which are a relatively expensive means of storing large collections, but are specifically designed, beginning with the chemistry of their makeup, in a manner that will not transfer oils and acids onto your valuable collection. If, however, expense is not an option, I strongly recommend at least three ring binders with protective top loading pages in them. These pages should be PVC free, and acid free. They allow notes to be stored, catalogued, and viewed easily, while providing protection against their damage. Another, less serious option is to store banknotes in some sort of container such as a tin. If the container allows notes to be laid flat, and is rarely moved or opened, it will keep mechanical damage to a minimum.

Useful Tools for Collecting Banknotes

Other than protective supplies, there are few tools used for banknote collecting. Ofcourse it is useful to have identification tools (such as this website or a catalogue). Also, it is good to have some sort of archive of your collection -- a record. Personally I keep a record within my binders of notes on paper, listed by country as well as a spreadsheet to keep track of banknotes that I have, banknotes that I would like, and other data such as price paid, value, date or purchase, etc. Additionally I have purchased a magnifying glass to get a real good look at some of the features of a banknote, such as detailed art or micro-printed designs and security features.