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I am seriously considering starting a collection. When I was a kid I collected US coins (halves and dollars - my grandfather was in the ANA for more than 50 yrs), and then stamps (early unused US - which my father collected as well). Those collections were sold to pay for college.
I've read cover to cover "US Paper Money" (Red Books - both the first and second edition). I'm fascinated by the detail and elegance of the large notes. I purchased the latest copy of the greensheet. No question, at this point in my life (older parents to worry about, a wife and 9 yr old), a big collecting budget is not possible. And that brings me to several questions that I am hoping some of you will help me to answer.
1. Grading in the coin and stamp hobbies sure has changed a lot since I used to collect. And, because I am new to this hobby, I am leaning toward purchasing only PMG certified notes. Does this make sense? How much of a premium am I paying to purchase a certified note (typical dealer mark-up, not cost of submission for grading), 10% or more? That said, I want to learn everything there is to know about grading, because I feel that if you are going to be involved in a hobby you should take the time and put forth the effort to be knowledgable.
2. Owning uncirculated notes is not important (or cost feasbile), to me. I am considering collecting XF notes with variance to VF for more expensive notes and AU for less expensive notes. This will allow me to hopefully purchase a decent number of notes, where if I stuck with high grade, I could purchase only a few. Does this make sense?
3. While I do not anticipate selling this collection in my lifetime, I would want to be able to get my initial investment out of it, and also not "take a bath" if I were to sell a VF note in order to upgrade to an XF or AU one day. Are the VF and XF grades not just "collctible" but "desireable?"
4. I thought that to start I would attempt to collect the 1880 Legal Tenders ($1 thru $20); the 1899 Silver Certificates ($1 thru $5); the 1906/07 Gold Certificates ($10 and $20); and the 1914 Blue Seal Fed. Res. Notes ($1 thru $50). So this is sort of a "type collection (as opposed to multiple bank districts or certain signature combinations). Is this a generally acceptable way to collect?
5. There is quite a significant difference in pricing when looking eBay, the Red Books (I realize they are a guide), on-line auctions (non-eBay), and this month's geensheet. Can I trust the greensheet's numbers? Do they reflect a price for a certified note? I frequently see on-line dealers listing notes for 40% or more above greensheet. Is it appropriate to ask a dealer to bring his price down closer to the sheet's?
I would sincerely appreciate all opinions and advice.
Thank you.
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