|
|
 |
|
Investing In Australian Banknotes |
Introduction
There is a strictly finite supply of Australian Banknotes. We have seen the transition to decimal currency, then the
conversion from paper to polymer banknotes. The $1 and $2 notes have ceased to be issued and have made way for
coins. Due to fire, theft or just carelessness, the limited supply of notes is also slowly reduced. These events only
enhance the value of the remaining notes, which as you know, can never be reproduced.
Investing
For some time now there has been a steady demand for Australian Banknotes, particularly from the Superannuation
sector – especially Self Managed Super Funds[SMSF]. Rare Australian Banknotes are Federal Government approved for inclusion in
company and personal superannuation funds. According to the Australian Taxation Office collectibles
are classified as legitimate investments. It is widely acknowledged that the prudent investor should place
up to 20% of their discretionary funds in Tangible Assets in order to maintain a well balanced investment
portfolio. Banknotes are the perfect choice.
Since July 1, 2011, SMSF's wishing to investment in collectables [banknotes] must comply with rigid new rules.
These assets owned by SMSF's must be stored according to new guidelines, insured within seven days of acquisition and they
must be valued annually. Nevertheless, with many super fund dropping almost 30% after 2008 GFC, collectables are very
attractive investments. A 1989 purchase of a
r26 Riddle/Heathershaw One Pound Uncirculated banknote
for $260 has given a compound rate in excess of 20% per annum after its sale in 2009 for almost $12,000.
This investment return consolidates the fact that Australian Banknotes were the premiere investment in Australia for the 10 year
period up to December 2001. The years since 2001 have also shown excellent gains, and even though prices may stall for a short
time, banknotes remain a premium long term investment.
| | 1998 | 2003 | 2008 | 2011 |
| r58 Ten Pound Note | 4,000 | 10,000 | 25,000 | 30,000 |
| r28 One Pound Note | 750 | 2,000 | 5,500 | 6,000 |
| r9 Ten Shilling Note | 6,500 | 15,000 | 40,000 | 55,000 |
Disclaimer : Past performances are no indication of future returns.
The disclaimer used by every investment provider. Fortunately, this does not apply here.
Australian Banknotes were rated the No1 Asset class performer for the 10 year period of 1991-2001. Over that 10 year
period Australian banknotes rated higher than vintage wines, thoroughbred horses, national and international shares.
Banknotes do not attract annual taxes or maintenance fees, unlike bank interest, company and personal superannuation funds.
Privacy
Australian Banknotes are one of the few remaining investments that may be privately accumulated.
This makes them attractive to investors who do not necessarily want to let the rest of the world
know what they buy, sell or hold at any particular point in time. Sales are confidential as there
is no need to lodge any paperwork with statutory authorities.
Affordability
Australian Banknotes are still very affordable to any investor. Despite their record of consistent price
gains Australian Banknotes are still available in a wide range of investment levels. Whether you wish
to start with $500 or $50,000, there are ample opportunities to invest.
Liquidity
Australian Banknotes, due to their strong demand, are a very liquid assett. All, or part of your banknote
portfolio, may be sold at any time. There are no penalties, early exit fees or locked in investment terms.
You choose when to buy or sell, and how long you would like to hold them.
Manageable
Australian Banknotes are easily stored and transported. You have total physical control over your valuable assets.
| RETURN TO TOP |
|
|
|
|
