Currency F.A.Q.s.
What is a Numismatist?
A Numismatist is a specialist in varying degrees in numismatics. Numismatics is the study or admiration or collecting of money, for example, coins, paper currency, commemorative medals, etc.

Numismatics is also the appreciation of currency. For numismatists it is typically the beauty of currency that they collect, the look of the back of a two dollar bill, the stunning beauty of a proof coin, sometimes it is the age and the history “If this Note could talk,” or it is the weight in precious metals, or it is the rarity or the future resale value as an investment, or it is the rarity or unusualness or a variety or error in the production process that attracts us. Who collects and why?

There are typically three types of collectors, those who collect for the simple adoration of currency, those who collect as an investment, and those who collect for a connection to history. People collect whatever suits their fancy. It is a part of who we are as human beings. I have yet to meet someone who has not collected something, even to the smallest degree, even if it is only one item.

The Lovers.
For these people it is usually about the look of the currency, such as the beauty of the back of a $2 bill, or the way a 2020 American Silver Eagle shines in the sun or looks under a microscope, or possibly it is the rarity of the currency they have as not many were made and the odds are that there are fewer every month, or that they just love the feel of the currency in their hands, and enjoy seeing it every day. For these types owning and having the currency is the end goal, and showing their collection off to other like-minded people brings others closer together and builds the community, and these types usually gift collections to friends, family, and grandkids in the hopes that they will enjoy what has been collected as much as the collector has enjoyed them.

The Investors.
For these people it is usually about value of the currency to other collectors, they either purchase the currency for a quick turnaround profit or put the newly purchased currency into an album for long term storage with the belief that in years to come the collection will increase in value and become a retirement nest egg, or if the prices spike, they would sell high dollar items, and buy other items with the same belief of realizing higher gains.

The Historians.
For these people it is usually about the what, who, where, when and why. What is the currency? Was it one of the Sacagawea dollars gifted to Glenna Goodacre for creating the design for the dollar coin? Where was the coin; was it on a famous shipwreck or in a famous collection? Who gave away or created the currency; was the currency a gift from a king, queen, president, etc. When was the coin minted? Was it during the Roman Empire or Colonial times? For these types of collectors the why is all about the connection to a place, person, event or time, and the simple joy of holding such a note can put them back in history and make them feel a part of it.

What is a Fancy Serial Number?
A Fancy Serial Number (FSN) is a unique number grouping within the serial number on paper currency.

Fancy Serial Numbers come in a variety of all kinds of types and arrangements, such as 7 of a kind where 7 numbers in the FSN are the same 55555551, or as a Ladder where every digit is one digit higher than the previous one 01234567, or as a birthday note, Oct. 3, 2001, equals 10 03 2001, the combinations of Fancy Serial Numbers are almost endless in their variations. When it comes to Fancy Serial Numbers, there are typically two reasons why Fancy Serial Numbers are desirable to collectors. Type 1: Rarity. Very few of these Fancy Serial Numbers exist. Type 2: They are specific to the individual, such as a CS-Birthday Note.

Rarity.
When it comes to rarity, the fewer that there are the better. Let us take an 8 of a kind, there are a maximum of 9 of these per series, or a CS-Ladder for instance 01234567, there are only 3 of these per series. Both types of Fancy Serial Numbers are highly collectable for collectors. Conversely, on the other side of this, there are the extremely common types of Fancy Serial Numbers, such as a pair xx22xxxx. These are as common as a Fancy Serial Number can get, and since they are so common, there is almost no desirability for them. There are differing levels of rarity when it comes to Fancy Serial Numbers, and the rarer the Fancy Serial Number the better the premium. Specific to the person.

When it comes to the person collecting Fancy Serial Numbers that means something to them personally, it must have a direct connection to them, such as a birthday note that is their birthday, anniversary, or maybe it has their phone number in the serial numbers, or that there is a movie phone number in the serial number, i.e., The Simpsons ~ Mr. Plow, 555-3226 or 05553226, or it has an 8 of a kind that contains their favorite number of 5, 55555555, or that it contains the zip code of their hometown, or it can be a history Note that has a date of historical significance to them. It can be anything as long as it is directly tied to them.

Who Prints the Notes and who gets the Notes?
Every summer, the 12 Federal Reserve banks place orders with the Comptroller of the Currency. After reviewing the requests, the Comptroller forwards the orders to the Bureau of Engraving and Printing (B.E.P.). The B.E.P. then produces the appropriate denominations of currency Notes bearing the seal of the Federal Reserve bank that has placed the order, and then ships the order to the Federal Reserve bank that placed the order. Washington D.C. B.E.P. Fort Worth B.E.P.

Star Notes.
What is the star on the Note? Are they rare or valuable? A “*” or “Star” on the end of a serial number where the second letter should be indicates a “Replacement” Note. By federal law there can only be one Note with that serial number and series year. When errors are discovered on notes, those notes are destroyed and their serial number sequences are re-printed, and the “*” or “Star” is added where the last letter in a serial number should be, the “*” replaces the letter and a Star Note is made.

Some star notes can be only worth face value while others can be extremely rare. Rarity and value are determined by the amount of Notes reprinted. The lower the amount of reprinted notes the more rare a Star Note is. While a print run of 32,000 star notes is rare, these Notes can fetch a higher premium, and in perfect or near perfect condition should be considered for grading and auction. In exceedingly rare instances they reprint only smaller amounts of 8,000, 10,000, 15,000, etc. These are truly rare and carry a higher premium.

Errors.
Sometimes errors happen; ink smears, one printed backwards, something falls into the presses and gets printed on, sheets fall off a pallet, wrong back plate or front plate, cracked printing plate, a forklift dumps a pallet, etc. Instead of paying government employees wages of highly skilled professionals to go through each sheet on the pallet, they would just look at the prior pallet, if there are no errors on that one, just the one pallet goes to be recycled, if it is on multiple pallets then more pallets of Notes get recycled.

What everything means.
Every number and letter on a U.S. Currency has meaning and each note is trying to tell you its story, where it was made, when it was made, where in the print run it was at, what plates were used on it, and where in that plate a specific Note was at, and if it is a reproduction. So let us get into what all the numbers mean. Plate Position indicates where on the printing plate this Note was. Federal Reserve District Seal indicates which reserve ordered the Notes. Serial Number are a unique combination of ten or eleven numbers and letters. Federal District Reserve Number indicates the Federal Reserve Number that ordered the Notes.

Treasurer of the United States shows the Treasurer at the time of printing. Series Year indicates the series year at time of printing. Secretary of the United States shows the Secretary at the time of printing. Plate Number Indicates the full plate that was used to print the Notes. Federal Reserve Bank Indicators.

For denominations $5, $10, $20, $50, and $100, the Note has a letter and number designation that corresponds to one of the 12 Federal Reserve Banks. The letter of each indicator matches the second letter of the serial number on the Note.

INDICATOR ~ BANK
A1 Boston
B2 New York City
C3 Philadelphia
D4 Cleveland
E5 Richmond
F6 Atlanta
G7 Chicago
H8 St. Louis
I9 Minneapolis
J10 Kansas City, MO.
K11 Dallas
L12 San Francisco


For denominations of $1 and $2, the Note includes a seal that identifies one of the 12 Federal Reserve banks, and also states the location of the bank in writing. Boston New York Philadelphia Cleavland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco

Serial Number.
The Serial Number is a unique combination of ten or eleven numbers and letters appears twice on the front of the Note. The numbers.

Each Note has a unique serial number that can be between 00000001 and 99999999. The First Letter on $5, $10, $20, $50 and $100. The first letter of the serial number corresponds to the series year. Note: On $1 and $2 bills this letter is omitted.

SERIES LETTER ~ YEAR
A 1996
B 1999
C 2001
D 2003
E 2004
F 2003A
G 2004A
I 2006
J 2009
K 2006A
L 2009A
M 2013
N 2017
P 2017A


The Second Letter.
The First letter on $1 and $2 Notes, and the second letter on $5, $10, $20, $50, and $100 Notes corresponds to the to the Federal Reserve Bank (FRB) that issued the Note.

The Last Letter.
The last letter or the suffix letter advances through the alphabet when all eight numbers reach 99,999,999 or when all numbers ordered have been printed for a specific Federal Reserve Bank within the same series. At the time of a series change, the last or suffix letter returns back to the letter A and repeats the cycle. Note: The letter O is not used because of its similarity to the digit 0 (zero), and the letter Z is not used because it is reserved for test printings.

Series Years.
You may have noticed that on Notes there are series years, 1978, 1999, 2001, 2003, 2006, 2009, 2013, 2017, etc. And you may have noticed that they do not run sequentially, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, etc. The differences between the series years is when a major design change happens such as changing the entire look of a Note, either the front or back, for any reason. The most likely reason to change a Note would be to address counterfeiting; however, changing the portrait of the person on the Note would also qualify as a major change. While $1 Notes and $2 Notes have remained largely the same, a series year is changed only when a significant or major change to one or more U.S. Notes occurs.

What does the “A” on the series year mean?
On certain series years like 2003, 2004, 2006, 2009, and 2017, there may also be the letter “A” attached to the series year. This occurs when there is a minor change to the note, primarily when there is a new Secretary of the Treasury or a new Treasurer of the United States, and a name or names on the Notes change. Another reason that the Note will have an “A” attached to the series year is a change in the way the Notes are produced such as a new or different printing process with different machines or ink or paper, these are considered minor changes to the Note and would not need a change to a new series year.

Printing Plates.
For denominations of $2, $5, $10, $20, $50, and $100, the Note position letter and number indicates in which position on a plate a Note was printed. It is a combination of one letter and one number and can be found on the front of the Note.

Faceplate and Backplate Numbers.
The faceplate and backplate numbers identify the printing plates used to print each side of the Note. The faceplate number is found on the face of the Note, and the backplate number is found on the back. Federal Reserve Notes printed at the Fort Worth, Texas, facility of The Bureau of Engraving and Printing include a small “FW” in front of the faceplate number.

Treasury Seal.
A green seal to the right of the portrait represents the U.S. Department of the Treasury. The design of the seal was changed to incorporate an English inscription and appears on all Federal Reserve Notes of the 1969 series year or later.

Lifespan Data.
When currency is deposited with a Federal Reserve Bank, the quality of each Note is evaluated by sophisticated processing equipment. Notes that meet their strict quality criteria - that are still in good condition - continue to circulate, while those that do not are taken out of circulation and destroyed. This process determines the lifespan of a Federal Reserve Note. The lifespan of Federal Reserve Notes varies by denomination and depends on several factors, including how the denomination is used by the public. For example, larger denominations such as $100 Notes are often used as a store of value, which means they pass between users less frequently than lower denominations such as $5 Notes, which are more often used for transactions.

DENOMINATION ESTIMATED LIFESPAN
$1 5.8 years $5 4.7 years $10 5.3 years $20 7.8 years $50 12.2 years $100 22.9 years Note: Average lifespan of a U.S. coin is 35 years. Cost to produce a Note at the B.E.P.

DENOMINATION PRINTING COST
$1 6.2 cents per note $2 6.2 cents per note $5 10.8 cents per note $10 10.8 cents per note $20 11.2 cents per note $50 11.0 cents per note $100 14.0 cents per note

How much does the B.E.P. Print every day?
The B.E.P. Prints $560 million a day with 45% of that being $1 dollar Notes. During Fiscal Year 2014, the Bureau of Engraving and Printing delivered approximately 6.6 billion Notes to the Federal Reserve, producing approximately 24.8 million Notes a day with a face value of approximately $560 million.

The Fiscal Year 2018 Yearly Currency Order contains 2.2 billion $1 Notes. Of all the Notes printed by the Bureau of Engraving and Printing, the $1 Note makes up about 45% of currency production. If you had 10 billion $1 Notes and spent one every second of every day, it would require 317 years for you to go broke.

U.S. Currency in Circulation.
As the issuing authority of U.S. currency, the Federal Reserve Board is responsible for ensuring that there is enough cash in circulation to meet the public’s demand domestically and internationally. Prices for goods and services, income levels, and the availability of alternative payment methods tend to guide the domestic demand for cash, while political and economic uncertainties shape foreign demand. As much as one half of the value of U.S. currency is estimated to be circulating abroad. The data tables list the value and volume of U.S. currency in circulation calculated in billions. As of December 31, 2017, there was $1,571.1 billion (about $4,800 per person in the US) in circulation, totaling 41.6 billion Notes in volume.

Value of Circulating Currency.
Value of currency in circulation, in billions of dollars as of December 31 of each year. $1 $2 $5 $10 $20 $50 $100 $500 + TOTAL 2018 $12.4 $2.5 $15.3 $20.1 $188.5 $89.2 $1,343.5 $0.3 $1,671.9 2017 $12.1 $2.4 $14.8 $19.6 $183.8 $86.4 $1,251.7 $0.3 $1,571.1 2016 $11.7 $2.3 $14.2 $19.2 $177.2 $83.5 $1,154.8 $0.3 $1,463.4

Should I get my Note professionally graded?
This question is as tough to answer as it is common. This is a common question among newer collectors until the newer collector gains enough experience to be able to determine paper quality, cut quality, print quality, rarity, FSN, etc.

The best option to answer this question is to ask those with greater experience, go to the community boards and post photos and see what the community says, or go to a coin shop or two or three and see what the dealers say. You can do your own research. Grading, auction, currency sales sites have pages and resources specifically devoted to this question. Learn from them. There are also courses in grading paper currency. Those are a wonderful place to start. There is a ton of information these awesome people and places can offer you, and most will do so happily, and after a little while the newer collector will start to gain experience about the bill and if it is worth the cost and time of getting graded.

Does the production date affect value?
The easy answer is yes. Having an older Note should increase its numismatic value but it only helps the value when you take all other concerns into account, but usually the older the Note, the greater the scarcity and the more rare the Note is. Let us say that you happen to find a 1935A $1 silver certificate, but if it is of poor quality, some wear holes in it, a torn corner, faded from use, burn mark, and no fancy serial number, etc. it could sell for as little as a couple of dollars. However, if you find one that has exceptional paper quality, perfect cut, bright paper, and strong printing, a Fancy Serial Number, then the older date on the bill will only amplify the value, and a newer date may only increase the value very slightly of the bill and not at all. So, while an older date on a Note should add to the value, it is like every other piece of the bill. The more of these items such as paper quality, cut, errors or varieties, Fancy Serial Number, strong printing, date, provenance of ownership, and so on.

The more of these attributes you have associated with the bill, the more attractive it can become to yourself or another collector.

Note: This page contains excerpts and basic information from the book "The Green Guide to Fancy Serial Numbers". Please consider adding a copy to your library, thank you.