Invest in coins/banknotes?

Always thought it was a waste of time but been looking on eBay and realise people pay big money for some old notes in urcirculated condition..



Superannuation Investments

There is an interest in the investment of rare banknotes through superannuation funds, as a means of diversifying funds.

Rare Banknotes – The Best Producing Asset in Australia from 1990-2000.

Rare banknotes as both a superannuation and private investment have given outstanding returns over 30 years of survey’s conducted from 1977 up to 2000.

Annual capital returns of 15-20% in the superior graded banknotes of Uncirculated.

Annual capital growth from Australian Banknote and Coin Catalogues have shown from 2010 to 2011 an average growth of approximately 10-15% per annum.

 

so which ones are good investments
I used to collect them as a kid

the rarest thing I have is a bundle of $1 and $2 notes

 

If they are good condition probably worth a bit.

I think the first prefix AA serial number and the last prefix is what collectors are usually after

 

uncirclated in a strap, but im sure they arent rare serial numbers,
I just got the cheapest one because I wanted a bundle

 

Don't ever forget to check the back of Grandpa's wardrobe for that bag of pennies he collected from 1930...

 

i always wonder if these rare ones like the AA or the AA000001 dont even make it to the public and are simply sold as a collector piece or retained by the manager or CEO or supervisor

 

Have recently wondered, with an increasingly cashless society what will happen when we don't need coins or notes. It will happen one day. Will it make old, semi valuable coins and notes more or less valuable?

Have been given a reasonable collection from my dad, and slowly adding to it more as a hobby than an investment.

 

Correct - first and last prefixes and star notes are many times more valuable.

 

Star notes?

 

They used star notes to indicate a replaced/reprinted note in a bundle I think.

 

A reprint of one that got messed up in some way (print issue) during the printing process.
That specific note (same serial number) is then reprinted with an asterix (actually a star if you look closely) next to the number.

 

Is this still done with notes today?

 

There's also this

Collectables and personal use assets

New rules in July 2016 include

• NOT LEASED TO RELATED PARTY.Collectibles (collectables) and personal use assets must NOT be leased to any related party of the SMSF
• NOT STORED IN PRIVATE RESIDENCE.Collectible and personal use assets (PUAs) must NOT be stored or displayed in the private residence of any related party of the SMSF (although it can be stored, but not displayed, in business premises)
• REASONS FOR STORAGE IN WRITING.SMSF trustees must record in writing the reasons for the decision on where to store the collectible or PUA, and keep that record for 10 years.
• MAINTAIN INSURANCE.SMSF trustees must ensure the asset is insured in the name of the fund within 7 days of acquisition (according to the ATO it is possible to take out a collective policy for all collectibles held by a SMSF provided the insurance policy is still in the name of the fund).
• NOT USED BY RELATED PARTY.Collectibles and PUAs are NOT to be used by any related party of the SMSF (which means you can’t hang your fund’s art work in your business premises, or a related party’s business premises, according to the ATO).
• VALUATION BY QUALIFIED INDEPENDENT VALUER.Transfer of ownership of collectables and PUAs to a related party of a SMSF must be done at a market price determined by a qualified independent valuer.

Link

This was also of interest

Rare coin company placed into liquidation owing private investors millions

 

I will just keep them under my bed

 

Or buried in the garden

 

Stopped in 1971 according to these guys.

Australian Star Notes