Currency grading and my proxy views

Hi,

I have always wondered what do currency grades really mean and what does it mean to me in terms of investment value or even to a layman trying to make sense of it. Also, what grades are worth investing in and what I should be focussing my collecting efforts on to build a collection that is suitable for me.

I have dealt with bonds before and there is a pretty similar grid that is used to determine the investable grade of all kinds of bonds. I did a cross calibration and together with my analysis I have tiered the various PMG grades and done a proxy methodology in proving an easy map to help understand better the various investment tiers of notes.

Again this is purely based on my analysis together with a thorough calibration done solely by me. All this analysis was formulated by me and is proprietary. Also most of my comments are geared towards Orchid and GKS Orchids as this is my area of specialty.

It is also just to be used as a reference guide to help you and is in no way related to PMG other than the grading scale which I have used, that they have provided on their website:
http://www.pmgnotes.com/grading/grading-scale.asp

Hope the grid below has helped provide some additional value for all you fellow enthusiasts!

*Btw PNP is short for Paul's Numismatic Passions.

Currency Collecting Trends

Hi All

How have you guys been. Today I would like to share abit about trends I have noticed in the currency collection field.

I have been studying the price history and trends of various currency notes over the past 3 to 4 years. This study is based on various sources such as auction prices (after premium), dealer quotes, ebay prices (only on the quality notes sold), flea markets and of course interactions with fellow collectors.

In this numismatic field I have made some interesting and very useful observations. Am sharing them today to help spread knowledge and help you form a good background in this increasingly popular hobby.

1. Price trend of currency collections has been strong, seeing particular strength in the last 1-2 years. This has been fueled by an increase in collector interest and importantly a desire to diversy away from the usual investment areas and to invest in alternatives.

2. Even with the recent price strength, the Asian numismatic market still is in its infancy stage. The prices of the notes transacted still are around 40 to 50% of the worldwide valuations.

3. With the right note, grade, signature and even serial number, it is not improbable for the value of your note to double in value over the next 2 - 3 years. To better protect your note, it would be wise to store them in non-PVC plastic or have them pouched by PMG.

4. Collectors are more willing to pay price premiums over quality and scarce notes that are rated minimally PMG 55 rather than paying a low price for a better 'valued' note that has a perceived lower grade. Basically collectors want to collect quality rather than quantity.

5. For lower denominations, series of notes are far more popular vs a single piece. This is especially pleasing to look at as a collector as I have personally witnessed.

6. It is better to be focussed on a particular field than to be too distracted and try to collect too many notes. With a fixed amount of money available to spend, quality is particularly important.

7. It is also important to identify a credible source whereby you can obtain your notes from. It should be a reputable dealer or someone you can trust and has a reputation to uphold. As per my previous post on currency due diligence always request to inspect your notes before purchase.

*At the time of writing i am in the midst of creating an affordable, useful and handy currency essential kit to help you with this. Will update you guys when it's ready. :)

8. Most importantly, you need to enjoy your notes and make collection your primary focus. If you happen to make money from your passion it's always a bonus!

Happy Wednesday folks!

Interesting Facts about Goh Keng Swee (GKS) signed Orchid Notes

Paul Zhuang Oct 2013

Did you know that:

1. The seal on currency notes first appeared in 1970. The notes bore the seal and signature of Dr Goh Keng Swee (GKS), then Chairman of BCCS.

2. Dr Goh was reappointed as the Minister of Finance in 1967 when the British announced in July 1967 of their impending military withdrawal. Dr Goh was tasked to deal with the loss of 20% of the GDP with the withdrawal of the military spending. He also needed to weigh the total claims of the Ministry of Defence on the budget as against the claims by other ministries and in the context of the development of the whole economy.
The basic principles of Singapore's defence budget was subsequently established during his tenure together with the implementation of export oriented development policies.

3. GKS signed orchid notes are the rarest amongst the signatures as compared to Lim Kim San and Hon Sui Sen, as he was in office the shortest period of time. This made his signature the most scarce and as such the most valuable within the orchid series.

4. The highest price ever paid for a single GKS signed Orchid note (before auction premium of 18%) was S$2,800 for a GKS $10 Orchid note with solid 8s serial number. This was transacted in March 2012. This has recently been surpassed at a recent auction in Oct 2013 whereby a yet to be graded GKS $5 Orchid went for a nice $3,900 (before auction premium of 18%).

5. The $5 and $100 are the most sought after denominations of the GKS Orchid Series. The rest of the denominations such as the $1, $10 and $50 are also highly collectible, but are preferred in running series. 

6. GKS Orchid Notes in the local numismatic community has often been described as a stable blue chip 'investment' as their prices have stably increased over the years. This to me is very important as it is not subject to wild price fluctuations we may witness in certain segments of the numismatic market. 

7. GKS Orchid Notes are also in relatively high demand from overseas collectors. 

Hope the interesting facts above have provided some useful information on Orchid Notes for you. Thanks for reading!


Sincerely
Paul's Numismatic Passions

Orchid Currency Notes - Specialising in Goh Keng Swee (GKS) signed Notes. (For all enquiries please email paulsnumismaticpassions@gmail.com or drop a message in the shoutbox at the bottom of the page. Thank You)

GKS Orchid $5 Grade 65 Gem UNC EPQ - (Not for Sale)

GKS Orchid $5 Grade 58 Choice AUNC EPQ - (Not for Sale)

GKS Orchid $100 Grade 64 Choice UNC - (Sold - Undisclosed Price)

GKS Orchid $100 Grade 55 AUNC EPQ - (Not for Sale)

GKS Orchid $100 Grade 35 Net -  Price S$800 (Available)

GKS Orchid $10, Set of 5 Running Consecutive Numbers - Price Upon Ask (Available)

GKS Orchid $10, Set of 2 Running Consecutive Numbers - Price Upon Ask (Available)

GKS Orchid $1, Set of 10 consecutive running numbers, UNC condition - (Sold $350- 27 Oct 2013)

GKS Orchid $1 pair, 1st piece AUNC, 2nd piece EF condition - Price $70 pair (Sold -  9 Nov 2013)

GKS Orchid $50 Grade Fine - Price S$200 (Sold 7 Nov 2013)

GKS $10 Grade Very Fine -  Price S$100 each (Available 1 piece, 1 Reserved)

GKS $10 Grade Extremely Fine/AU -  Price S$220 (Sold 7 Nov 2013 )

GKS $1 Grade Extremely Fine/AU - Price S$40 (Sold - 13 Oct 2013)

Singapore Currency News Articles

I have chanced upon some interesting news articles, especially those that have reported on the numismatic value of GKS signed orchid notes. These further reinforced my passion and desire to build a valuable collection of his signed orchid notes.
Please note that these articles have been consolidated from fellow collectors both from the web and in person and being re-posted here. Happy reading!

News Article published on 6 July1988

News Article published on a Chinese Newspaper in 2013

Commemorative Notes (For price and availability enquiries please email paulsnumismaticpassions@gmail.com or drop a message in the shoutbox at the bottom of the page. Thank You)

MAS $25 Commemorative Note, comes with original chequebook UNC condition- Price $130 (1 Available, 1 Reserved, 1 Sold on 13 Oct 2013)

MAS $25 Commemorative Note, comes with original folder UNC condition - Price $120 (Reserved)

Singapore and Brunei Interchangeability Agreement $20 Note UNC Condition - Price $30 (Sold)

Singapore 25 Year Independence Commemorative $50 Note Extremely Fine Condition - Price $80 (3 Available,  1 Sold on 21 Oct 2013)

International Banknote Society (IBNS)

Hi

I would like to share a bit more about the IBNS which I have joined as a member. The website is:
International Banknote Society (IBNS)

The International Bank Note Society (IBNS) was founded in 1961. It operates as a non-profit educational organization and in furtherance of such purpose, its objectives are to promote, stimulate, and advance the study and knowledge of worldwide banknotes and paper currencies and all matters related thereto along educational, scientific and historical lines. Currently the IBNS has over 2,000 members in more than 90 countries.

This is a good association to be a member of if you are keen to advance your study in the area of numismatics. Nothing beats understanding and reading more about your area of interest.

Hope the above information helps and happy studying!

Currency Note Due Diligence

Hi all visitors to my blog,

Today I came up with a simple but effective 3 step due diligence process on purchasing currency notes. I experienced the awful experience of having bought a washed note before from a flea market dealer and paid a hefty price for the lesson. As such I'm eager to share some simple tips on how to see if your note is genuine and whether it has been adversely processed or damaged before.

I also endeavour to check all the notes that I have displayed on this blog to ensure a pleasant and valued numismatic experience for all fellow collectors and newbies who are keen to keep a part of our nation's history. For anyone who would like me to help verify your old notes you can contact me on paulsnumismaticpassions@gmail.com for a free verification service. Sharing the passion :)

Do enjoy the read!

Step 1: Physical Examination

- Proper Due Diligence
Always request to physically inspect the note before purchase. Also insist to have the note removed from its lamination especially if the note is of significant value. Only notes that have been graded by 3rd party professional graders like PMG are fine to be kept in their certified pouched folder which preserves the note's value. Below is an example of a graded note by PMG based in the USA. You can trust the grade and authenticity of the note if it's been certified by a 3rd party grader. Notes that have been washed, damaged etc will be indicated by them as such.

Certified note by PMG, as having grade of 55 and exceptional paper quality or EPQ indicated on the top right. 

- Visual inspection. 
The colours on an original and unprocessed note should look vibrant and lively. The paper should also look whole and in a solid piece.

Example of a washed note. notice the colours especially on the orchids are dull. the paper also looks limp and soft. 

Example of an original note. the colours are vibrant and the paper is whole and firm.  It is fine to have natural ripples on the note paper as this is part and parcel of the natural ageing of notes. Do not attempt to press these natural ripples as it may lower the value of the note. 

- Touch Inspection. 
Feel whether the note is 'limp'. Limp would mean that the note doesnt feel crisp like a new note. Take a new paper dollar note and feel it. It should feel crisp, firm and have a nice whole texture. When a note has been washed it would feel limp and 'thinned'.

Example of a limp and washed note

Example of a crisp and original condition note. 

Step 2: Smell Examination

- Take the note and smell it. It shouldnt smell of any strong chemical smell. For eg. a note that has been washed with chlorox would have a strong bleach or chemical smell.

Step 3: UV examination

- You can use UV light to see if the note has been washed. In a dark place shine your UV light on the note to see if there are any blotches that are obvious tell-tale signs that the note has been washed.

Notice the top middle part of the note. There are blotches which show that the note has been washed by chemicals before to lend an appearance of a higher grade. 

This is how an original note should look like. Notice the clarity of the note under UV light without any blotches.

Notice how the security features are glowing clearly. No visible blotches on the note with perfect clarity. This note was certified with exceptional paper quality by PMG.

Coins (For price and availability enquiries please email paulsnumismaticpassions@gmail.com or drop a message in the shoutbox at the bottom of the page. Thank You)

Christening of Prince George Silver Proof Coin 2013 - Not for Sale

1 of 500 limited pieces selected, 2013 Orchid Proof Silver $5 Coin, Nice Serial Number. Price Upon Ask (Available)

Prince Charles and Princess Diana Wedding Commemorative Coin, 1980. Great as a birthday gift for those born in 1980 or to be kept as a momento. Price S$40 (Available)

 Queen Elizabeth 80th Birthday Commemorative Coin, 1980. Great as a birthday gift for those born in 1980 or to be kept as a momento.  Price S$40 (Available)

US $1 Eisenhower Coin - Apollo Design, 1977. Great as a birthday gift for those born in 1977 or to be kept as a momento.  Price S$20 (Available)

US $1 Kennedy Half Dollar Coin, 1972. Great as a birthday gift for those born in 1972 or to be kept as a momento. Price S$10 (Available)

25 Years of Singapore Independence $5 Coin - Price SS$20 (Available)

SEA Games $5 Commemorative Coin - Price S$20 (Available)

Commemorative United Nations $5 Coin 10 pcs set - Price S$150 (Available) 

25 Years of Independence Commemorative Coin 1990. Great as a birthday gift for those born in 1990 or to be kept as a momento. Price S$20 (Available)

Solid Numbers (For price and availability enquiries please email paulsnumismaticpassions@gmail.com or drop a message in the shoutbox at the bottom of the page. Thank You)

Set of Portrait Solid Number 7s $2 - All Uncirculated and Excellent Condition. Fantastic looking when framed and displayed.  Price S$700 (Available)

Portrait Solid Number 5s $2 - Uncirculated and Excellent Condition. Great as a collectible or to be used as a corporate gift. Price S$150 (Available)

Portrait Solid Number 7s $50 - Uncirculated and Excellent Condition. Great as a collectible or to be used as a corporate gift. Price S$350 (Available)