1974 $2 RS Test Note

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Hey

I have the opportunity to buy a pair of 1974 $2 RS test notes in consecutive order. The grade is likely an AU / UNC. I am wondering how rare these notes actually are or can they be considered rare. Is getting them in consecutive order any benefit or are there any large consecutive or rumored consecutive runs out there?

What seems to be the reason for a showing a decrease in value in the Charlton guide? Any and all information provided will be greatly appreciated and I do look forward to hearing from you soon.

If you wish to talk in private please email me at jcaissic296@rogers.com   

Cheers

Anyone?

I'll take a shot at answering this though I'm certainly not an expert on test notes.

I had an identical opportunity a few years ago.  A local dealer had two consecutive 1974 $2 RS notes in AU.  I bought only one.  Apparently a dealer from another city bought the other note and tried selling it on eBay.  The grade was choice AU and the price was higher.  My feeling is that the catalogue value is strong, meaning it is about where it should be though there's no data indicating that the prices should go higher in the near future.  So a smart buyer would wait for a "deal" to come along.

More research needs to be performed and published to prove that RS test notes are rarer than they appear.  A general rule of thumb is that a significant number of older notes in Unc or thereabouts usually came from a common source, either a hoard or a run of consecutive notes.  I can't say if that's a majority of Unc notes, but some consecutive runs of older notes have been documented.  Good examples include the 1931 Bank of Montreal $10 note and the 1922 Molsons Bank $5 and $10 notes.  An example from government-issued notes is the 1912 $5 train note where several small runs are known.  All of these aforementioned notes are valuable on an individual basis, and I suspect that most collectors would be happy owning just one in top grade, making pairs or runs of these notes not worth a premium.  I suspect that any long sequential runs of RS notes, if any existed, have been broken up to make them more salable at the current prices.

If the Charlton price is going down for RS notes, it's probably the result of a soft demand at the given prices.  Someone with more knowledge can chime in if they feel they know about the investment potential of individual and sequential test notes.

 - M

From what i see, the RS $2 notes are not that rare. I would say they have about the same availability as the 1954 S/R notes. If you want a really rare test note, look for the $5 RS and the 33. Not many of those around!

Thanks for your answers guys.

I have not purchased the notes yet but I like the the fact that they are consecutive.

Jason

Regardless whether these notes are relatively common or not, sooner or later these are going to take a big jump in pricing again.

Regardless whether these notes are relatively common or not, sooner or later these are going to take a big jump in pricing again.

I agree completely.

Here, BTW, are the Charlton catalogue values over the years...

Charlton 4th (1991)  EF $200  AU $400  Unc $900
Charlton 5th (1992)  EF $180  AU $350  Unc $700
Charlton 9th (1996)  EF $150  AU $250  Unc $550
Charlton 11th (1998)  EF $200  AU $350  Unc $700
Charlton 13th (2000)  EF $240  AU $500  Unc $900
Charlton 15th (2002)  EF $225  AU $450  Unc $800
Charlton 17th (2004)  EF $225  AU $450  Unc $850
Charlton 18th (2005)  EF $225  AU $450  Unc $900
Charlton 20th (2007)  EF $200  AU $400  Unc $825-900
Charlton 22nd (2009)  EF $160  AU $325  Unc $650-725

If you follow the bouncing ball, these test notes are near their all-time low in value, so they will probably go up again soon.  So the short-term investment potential is there.  Long term investment... not good.  If we assume the catalogue values are more or less correct, these notes have not improved over the early 1990s, back when small chartered notes could be had at a couple dollars over face. 

Consecutive notes are highly overrated and are used frequently to scam naive buyers who think consecutive = Unc. 

That's interesting

I quickly added the values and added inflation. Here's a few numbers

In 1991 AU condition $900 then is $1,243 Today
In 1996 AU Condition $550 then is $706 Today (lowest year?)



Does any body know an approx range of how many of these notes are out there?

MG

Does any body know an approx range of how many of these notes are out there?

I honestly don't think the range of notes out there is as significant as the perception that many still exist and exist in excellent condition.  From many of my visits to the shows, one almost always sees a few UNC RS test notes, and even in consecutive runs.  Seeing consecutive notes out there typically deter experienced collectors from buying (not necessarily buyers or dealers).  I think most collectors consider the RS $2 one of the more common test notes (almost like a  *BM).  Even the 1954 test notes in high grades seem less common.  Although I would agree that these BV's go in cycles-- I would predict the EXA $1 to be a better investment.  however, as a novice collector, the $2RS note is a nice note to acquire--esp if you're looking for a less pricey test note. Some collectors don't necessarily see notes as a stock'nbonds kind of investment, but rather like to say they have a test note, or something rare of that nature.

Typically, most dealers and buyers I've met expect a discount when they see a run of notes (interested only in getting the lowest price for the notes) since it is almost a perceived gamble to hold onto said notes (esp a large #) for any length of time (trying to find a buyer or buyers), and usually runs of this kind are split up.

If you want a really rare test note, look for the $5 RS and the 33

Tough to find in any grade and likely a very good investment.  Most collectors know these notes are seldom seen (like your 1954 $10 *U/T or *B/V) & are readily snapped up in any condition.