hey all - i'm referring to this US $1000 1928 note here, or any similar note (face value of $1000 & quality) - http://www.highdenomination.com/Thousand_Details.asp?id=2102 i hope i can make this clear, and seeking thoughts/ideas from others. obviously the price of this note currently has a floor of $1000 since it can be deposited in your account for the credit of $1000. a bit like the $10 silver coins, for example. if the US replaced its currency, this floor disappears. would this be good or bad for the value of the note? but do you think in US (hyper/significant) inflation, this note would actually lose purchasing power? or is the note's price/value measured in oz's of gold for example, just converted to $ for buyer ease? ie: say gold is US$1500, the note is priced at $3250, will ~2.16oz of gold always buy the note? (as long as supply/demand dont change) so if gold went to US$10000, would the note then be US$21,600? or does it flounder and maybe only appreciate to US$5000? this note looks to be a bad investment for me in australia, since our currency is appreciating vs the US$, but if the note was priced in AUD gold, then it has potential to be an "ok" investment. (not to mention GST would be added when importing the note to the country, which is not good for the investment either). any ideas? how will this note be priced in the future? will it be with a reference to a price in gold, or is it stuck in FRN land forever? (i point out that when this note was produced in 1928, gold was US$20.67, and hence being "redeemable in gold", it could have been exchanged for 48.38 ounces of gold!) today, at $3250, it buys 2.16oz. a totally terrible investment over the past 83 years. further, if the US had a straight out revaluation of 2:1, could that detract from the note's price, as the current floor of $1000 (would be perhaps equal a "NEW" $500 in a 2:1 revaluation), further destroying the note's value. after typing all this out, it seems silly to think the note should now trade in relation to oz's of gold, considering it has lost 95.5% of it's original value already, but surely at some stage the note should bottom out and start to head back up in price, due to rarity/increase in awareness & demand, or not?? i guess it all comes back to supply/demand? thanks for your time!
It's a demonetised note - the price of gold is irrelevant to future value. I don't believe you could even deposit it for $1000.
thanks for your post goldpelican. http://www.thecurrencyhouse.com/index.html says "Unlike other U.S. paper money, all high denomination notes listed on this site still carry legal tender status and are redeemable for face value at any bank!! Checkout the History of these notes by clicking the buttons to the right." it is still a Federal Reserve Note so i believe it can be banked to a US account. not to say there wouldn't be a hassle or confused look on a teller's face if you tried to bank it. but i'm sure you could..
it also seems to be that collecting bank notes is not an investment, but more for the enjoyment as a hobby - much like cars.. the money will never be recouped. also the arts/collectibles tend to do well when the economy is doing well. so i think the upshot is that as the US economy declines, there could be some significant bargains to get "at the bottom", that may provide great enjoyment for the collector, but possibly? make a decent "long term investment" provided your selections are rare enough, perhaps for sale into a future economic boom, if you were to sell at all.
I saw one of these $1000 notes on Pawn Stars the other day, they came out when they bought all the gold in 33-34 I think, I can't remember if it had a lot of numi value, what sort of condition is it in.
All Federal Reserve Notes ever printed are legal tender. The market for $500 and $1000 notes in the US is always strong due to the collector and novelty appeal. Whether or not it will appreciate along with gold is impossible to say, but it is now and will always be worth more than face value in collector market value. They are highly collectable - guys on Wall Street used to carry a 500 or 1000 in their wallet to show off. They haven't been made since before WWII, so they are fairly rare. Hope that helps.
Just check American E-Bay to get an idea of what you are working with. There will be plenty of them listed.
