Paper Money Collector Guide: Collecting and Selling Rare U.S. Paper Money
A paper money collector (also called a notaphilist) collects banknotes for their history, artistry and rarity. U.S. paper money is one of the most popular fields in notaphily, with series stretching from Civil War greenbacks and fractional currency to Silver and Gold Certificates, large size Federal Reserve Notes and modern star notes.
American Rarities has bought and sold rare coins and paper money since 1990. In more than 30 years we have purchased over $350 million in coins and collectibles, and our team brings hundreds of years of combined experience. We are ANA Life Members, hold an A+ rating with the BBB and are rated 4.7 stars from 86 Google reviews. This guide covers the main types of U.S. paper money, large size vs. small size notes, what makes a note valuable, grading and care, and how to sell your paper money collection.
Types of U.S. Paper Money Collectors Look For
Most U.S. paper money collections are built around a handful of classic types. Each was issued under a different law and has its own seal colors, designs and rarities:
- Legal Tender (United States) Notes, issued from 1862 to 1971. Civil War “greenbacks” and large size designs such as the 1901 $10 “Bison” note are favorites. Small size notes have red seals and serial numbers.
- Silver Certificates, issued from 1878 to 1964 and once redeemable for silver. Highlights include the 1896 Educational Series, the 1899 $1 “Black Eagle” and the 1928 $1 “Funnyback.” Small size notes have blue seals.
- Gold Certificates, issued from 1865 to 1933 and recognized by their gold seals and, on many large size notes, orange backs. They were recalled in 1933.
- National Bank Notes, issued from 1863 to 1935 by local national banks and printed with the bank’s name and charter number. See our National Currency Notes guide for details.
- Federal Reserve Notes, issued since 1914. Large size Series 1914 and 1918 notes, early small size notes and the discontinued $500 to $10,000 high denominations are especially collectible.
- Fractional currency, small notes worth 3 to 50 cents issued from 1862 to 1876, when coins were hoarded during the Civil War.
- Star notes, fancy serial numbers and error notes, which collectors seek in every series (see below).
We also buy obsolete bank notes, Confederate currency and colonial currency. The U.S. Currency Education Program’s history of U.S. currency is a good timeline of every major type.
Large Size vs. Small Size Paper Money
Collectors split U.S. paper money into two eras. Large size notes, issued before 1929, measure about 7.375 x 3.125 inches and are often called “horse blankets.” In 1929 the Treasury made notes about 30 percent smaller, 6.14 x 2.61 inches, and standardized the designs for each denomination, according to the U.S. Currency Education Program. The first small size notes were Series 1928.
Large size notes usually carry larger premiums because fewer survive, their designs are more elaborate and many were heavily circulated. Small size notes are easier to find, but scarce series, high grades, star notes and fancy serial numbers can still be very valuable. Our U.S. paper currency information page explains more about each era.
What Makes Paper Money Valuable?
A paper money collector judges every note on a few key factors:
- Rarity: how many notes of that type, series, signature combination and Federal Reserve district were printed and how many survive. Collectors identify notes by their Friedberg (Fr.) catalog number.
- Condition and grade: a crisp uncirculated note can be worth many times more than a worn example of the same note. Folds, tears, stains, pinholes and repairs all lower the grade.
- Certification: notes graded by PMG or PCGS Banknote are easier to buy and sell because their authenticity and grade are guaranteed.
- Demand: popular designs, such as the Educational Series, Bison and Black Eagle notes, attract strong collector demand.
For typical values of common notes, see our coin and paper money price guide. Values change with the market, so a current appraisal is the best way to price your notes.
Star Notes, Fancy Serial Numbers and Error Notes
Star notes are replacement notes printed to replace sheets that were damaged during production. They carry a star in the serial number, and because fewer were printed, many series carry a premium.
Fancy serial numbers include very low numbers such as 00000001, solids (all the same digit), ladders (12345678), radars that read the same backwards and repeaters. Low serial and solid notes are the most sought after.
Error notes are mistakes made at the Bureau of Engraving and Printing, such as inverted backs, mismatched serial numbers, missing or shifted printing and folding or cutting errors. Major errors usually add value and can sell for strong premiums, while minor ink smears or slight misalignments add little.
Paper Money Grading and Certification
Most collectible U.S. paper money is graded on a 70-point scale based on the Sheldon scale, from heavily worn low grades up to Gem Uncirculated 70. The two leading third-party grading services are Paper Money Guaranty (PMG) and PCGS Banknote. Each authenticates a note, assigns a grade and seals it in a protective holder. PMG adds an EPQ (Exceptional Paper Quality) designation and PCGS Banknote a PPQ (Premium Paper Quality) designation for original notes that have not been pressed, washed or repaired.
American Rarities is a PCGS and NGC authorized dealer and an ANACS submission center, and we buy paper money certified by PMG, PCGS Banknote and others. We also buy raw (ungraded) notes and can tell you whether grading is likely to add value. Learn more about coin and paper currency grading services.
How to Care for Your Paper Money
- Don’t fold, press or iron notes. Flattening a note to hide folds is detectable and can cost it an EPQ or PPQ designation.
- Never clean, wash or erase a note. Cleaning damages the paper and ink and lowers its value.
- Handle notes by the edges with clean, dry hands, and never use tape, glue or paper clips.
- Store notes flat in archival-quality holders made of inert material such as Mylar (polyester), not soft PVC, and keep them away from heat, humidity and sunlight.
For more tips, read our guide to proper storage for collectibles.
How to Sell Your Paper Money Collection
Whether you collected for decades or inherited a box of old notes, selling to American Rarities is simple:
- Send photos and a list. Email staff@americanrarities.com, text pictures to 720-600-4740, or use the free appraisal form below.
- Get a free offer. Our paper money buyers review your notes and send a no-obligation appraisal and offer, usually within 24 to 48 hours. We also provide IRS-compliant appraisals for estates and donations.
- Ship or meet. Use our fully insured mail-in service with no deductible, with free or discounted shipping on selected collections. For larger collections we offer home visits, and our nationwide buying network, with a strong presence in California, Colorado and Arizona, can arrange an in-person appraisal.
- Get paid immediately. Once your notes arrive and are verified, we pay right away by company check, wire or ACH.
We buy entire collections and single rare notes, graded or raw. Visit our Sell Your U.S. Paper Currency page to learn more, or read collecting paper currency for more collecting tips.
Paper Money Collector Q&A
What is the difference between large size and small size paper money?
Large size U.S. notes were issued before 1929 and measure about 7.375 by 3.125 inches. Beginning with Series 1928 notes released in 1929, U.S. paper money was made about 30 percent smaller, 6.14 by 2.61 inches, with standardized designs. Large size notes generally carry higher collector premiums.
What types of old U.S. paper money are collectible?
Popular types include Legal Tender (United States) Notes, Silver Certificates, Gold Certificates, National Bank Notes, early Federal Reserve Notes and Civil War-era fractional currency, plus star notes, fancy serial numbers and error notes from any series.
Are star notes worth more than regular notes?
Often, yes. Star notes are replacement notes printed in smaller numbers, so many series carry a premium over regular notes. The amount depends on the series, the number printed and the note's condition.
Should I have my paper money graded by PMG or PCGS Banknote?
Grading is most worthwhile for scarce or high-grade notes, because certification by PMG or PCGS Banknote guarantees authenticity and grade and makes a note easier to sell. American Rarities can review your notes and tell you whether grading is likely to add value, and we buy both certified and raw notes.
Should I clean, flatten or press an old banknote?
No. Cleaning, washing, pressing or ironing a note damages the paper, can be detected by grading services and usually lowers its value. Store notes flat in archival-quality holders and handle them by the edges.
How do I sell my paper money collection to American Rarities?
Email staff@americanrarities.com, text photos to 720-600-4740 or use our free appraisal form. We usually make a no-obligation offer within 24 to 48 hours, offer fully insured mail-in service with no deductible or home visits for larger collections, and pay immediately by company check, wire or ACH.
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