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Australian Banknotes |
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2009
The global financial crisis has been called by leading economists the worst financial crisis since the Great Depression of the 1930s.
As such, not a lot of movement was seen in Australian banknote values. A few marginal gains in some areas, but, in general, most
sellers looking for a "book value" return did not enter the market. On the upside, those looking to buy were able to add to
their collections for a very reasonable investment.
First and Last Issues
This was the biggest mover during the last twelve months. In years gone by collectors were only accumulating
the very First and absolute Last Issues of notes [Prefix AAA and Prefix DPS in the $1 series]. Now they
are collecting First and Last Issues for every signature combination. The Rennicks Australian Coin and Banknote Values catalogue
has now assigned the suffixes of F and L to identify those notes. As this is a new innovation in collecting those with a
First or Last Issue in their inventory, albeit acquired innocently, will profit handsomely. This is the first year they have been
listed in print catalogues and the market is yet to determine their true value. Nevertheless, some of these notes will be very
difficult to acquire and will certainly command huge premiums.
A note of caution - not all First and Last Issue notes have been confirmed. Some are yet to be ratified, and a few have been
subject to correction. Be wary, especially with Knight/Wheeler banknotes. Also, some notes only have a range of 3 numbers
[like the r61 1952 Coombs/Wilson Ten Pound Note] so I would
not be paying a premium for those First and Last Issue notes.
Plate Identification Letters (PIL)
Plate Identification Letters were to be phased out by 1990 and prior to the introduction of polymer notes. Despite this, an
interesting feature occurred during the latter part of the printing of the 1993 Fraser Cole paper Ten Dollar note. Throughout
bundles of the last print run there was a plate letter on every third note. These notes are now commanding a very nice premium.
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After federation in 1901, when Australia became an independent nation, the federal government became responsible
for the currency. The Australian Notes Act was passed in 1910. In 1913 the first series of Australian notes was issued,
based on the old British sterling system.
The pound was the currency of Australia until 1966. It was subdivided into 20 shillings, each of 12 pence.
Australia issued the world's first polymer note, a $10 commemorative note, in January 1988, to mark
Australia's bicentenary. This note incorporated radical new technology developed in Australia and
set the scene for a new era of currency notes in the world.
Australia is the first country in the world to fully convert to polymer bank notes.
As of 15.05.96, all denominations of Australian currency in circulation were polymer
(paper banknotes were in still circulation but were being withdrawn).
Since 1913 there have been seven series of Australian notes issued. The present series of
Australian notes is the first in the world to be printed on polymer substrate instead of paper.
It consists of $5, $10, $20, $50 and $100 denominations. The $1 note ceased to be issued following
the introduction of a $1 coin on 14 May 1984. Similarly, a $2 note was withdrawn following the
introduction of a $2 coin on 20 June 1988.
Collecting banknotes
The market for Australian banknotes now rivals that of coins and stamps, and the prices being obtained
for these banknotes at auction are staggering. They are showing an annual average capital return of approximately
17.5% over the past 15 years.
It is for that reason that banknotes should be accumulated now.
The price of banknotes are at an all time low (as a percentage of their real value) and are a
perfect investment vehicle.
There are many ways of assembling a collection of banknotes without having to spend a fortune. You can start collecting
topical notes such as ten shilling and one pound notes only. Another way of assembling a meaningful collection is to use
historical releases, by collecting all of the King George VI banknotes, or perhaps all notes issued between certain dates.
The easiest way to start your collection is to buy a "beginners set" of banknotes. That way you start your own collection
of banknotes from scratch and at a low cost without spending many days and weeks collecting one banknote at a time.
Banknote Values
Many collectors believe that the print catalogues represent the final word on banknote values.
Experienced collectors and dealers know much better.
While the various catalogues are invaluable guides, and are highly recommended for all serious collectors, they
are not the definitive word on pricing.
Catalogue and market values for banknotes often differ for many reasons :
- Out-of-date :
Catalogues take many months to produce, and by the time of publication, much of the information
contained in them may be already outdated. A sudden increase in the value of a specific note
will not appear until the next catalogue, which may be not be released for up to 12 months time.
- Estimates :
Even though the catalogue valuers always do their best to provide honest values,
the fact remains that they are not always reporting actual sales, but rather simply
providing estimates of the value of notes that may not have been handled or sold in
years, if ever.
- Unrealistic :
It is very unusual for a catalogue to show a drop in value, even though this sometimes happens.
Just as the sale prices of land, stamps and coins fluctuate, so also do the prices for
banknotes.
- Incomplete :
As collectors who specialize in particular notes will confirm, there can be dramatic differences
in the market values of specific banknotes, especially with the first and last printed notes in
a series. It is only recently that some catalogues have picked up on these specifics.
- Inaccuracy :
Catalogues have been known to contain errors, such as missing notes and unlisted
dates. They may also contain incorrect values due to printing errors.
- Rarity :
Collectable banknotes are not commodities readily available on a retail market at a fixed price.
True rarities may come on the market only once or twice in a lifetime, and even the some
"common" notes are sometimes impossible to find at any price.
The two usual main indicators of value are rarity and condition.
Valuations
The valuations given on this website are to be used as a "guide" only.
They reflect the price you might pay for a banknote if you are purchasing it from a dealer.
In our valuations you will also see amounts in various colours [see below]
| Grading | VG | Fine | VF | EF | aUNC | CFU |
| 1998 | 150 | 300 | 600 | 1,250 | 2,500 | 3,500 |
| 2003 | 200 | 500 | 1,000 | 3,500 | 5,000 | 10,000 |
| 2008 | 500 | 1,000 | 3,000 | 9,000 | 15,500 | 26,000 |
| 2009 | | | [$2,750] | | | [$23,500] |
[$23,500] - Amounts in red were realised at Auctions [including 16.5%+ buyers premium]
[$2,750] - Amounts in blue were realised at Internet auctions [eBay and OZtion]
The eBay factor
Once discarded as a nuisance, eBay must now be recognised as a legitimate online auction house. Many of the sellers are reputable
ANDA members, who guarantee the grade and
authenticity of all items they sell, and also offer a 100% refund. Many sellers do not offer a Return Policy and sell their notes
"as is", offering only a very poor camera image as a source to "self grade" the note. Can you trust the gradings at eBay?
Not always, as overgrading remains one of the most serious and overwhelming problems for Ebay buyers of banknotes.
Of similar concern is banknote reconditioning
as is shown here. Should I purchase notes at eBay? Yes, by being very selective
of the seller and by using the
PayPal
option for payments.
References
The references on this website [r76b – Mc107] refer to the two premiere print catalogues that are used as the standard
by bank note collectors. The "r" numbers are from the Rennicks Australian Coin and Banknote Values catalogue and the
"Mc" numbers refer to The Pocket Guide to Australian Coins and Banknotes by Greg McDonald.
Copyright
Images and information on this site are reproduced for the purposes of research and study only. Whilst every effort has been made to trace
the Copyright holders, we would be grateful for any information concerning copyright of the images and we will withdraw them immediately on
copyright holder's request.
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