Old Banknote gem unc sell's for 50% more then cat!

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I was reading the new cat for 2011 and its say's that old banknotes ch unc or gem unc sell for 25% to 50% more then the cat value...I saw a note on ebay $1000 1937 selling for almost 28k then i ask myself if  that was the value people buy for if so why dont they just add the 25% or 50% to the currect cat???

When i get banknotes they are a little higher then the cat prices for the grades i buy for is that normal or am i being scam?...(banknotes 1937 and below) or does it make no difference)of years or rarity?

Good question, wouldn't mind knowing the reason also.

Can you please provide a specific reference to where in the catalogue it states that older notes in Choice and Gem Unc sell for well above catalogue value?  I can't find any such reference.

There is one on page 150, pertaining to Dominion notes before 1911.
Another on page 155 covers Dominion notes from 1911 to 1917, excepting the Train notes, covered on page 160.
Reduced premiums for 1923-25 notes on page 176.
These are all for Dominion notes, which are not often available in Choice or Gem Unc.
The percentages are probably suggested estimates only, and some negotiation might be needed to close a deal.
For all Bank of Canada notes there are columns for Choice and Gem in the pricing tables.  No percentage calculations are required.  The fact that a 1937 $1,000 sold far over book means either the market has moved ahead, or somebody got a bit carried away.

Thanks for the clarification, Bob.  I had a feeling there was something wrong with the original post where the person talks about 1937 notes.  It would be mystifying for the catalogue to price Gem and Choice notes and then say that the actual market values are much higher. 

Ok, that makes senses now. Thanks

Thanks for the clarification, Bob.  I had a feeling there was something wrong with the original post where the person talks about 1937 notes.  It would be mystifying for the catalogue to price Gem and Choice notes and then say that the actual market values are much higher. 

Guess my post was not too clear and got drifted away
All i was trying to understand is why sometimes banknotes sell for more then cat value.  I also said I had seen a note selling for much higher then cat value on eBay.  I am sure you had seen this happen before.  The date of 1937 was just example but guess that was not too clear. It was also a specif  banknote.  Like Bob said the change in the market can change alot I guess the Cat might not of been updated to the exact market value or street prices?  For 1937 it has ch unc and gem unc guess we both should of read our information   Sorry for the spam and hope you had an understanding of this thread before it was ruined

All i was trying to understand is why sometimes banknotes sell for more then cat value.

The note might be undervalued in the catalogue.  Or a certain buyer wants a particularly note badly enough, to pay what it's worth for him.  Buyers determine what the market values of notes are, not the catalogue. 

It's important to remember that the prices in the catalogue are based on what the notes are selling for in the market, not the other way around.

Thank you for making it clear
Thread close
sorry for the forum waste

There if never a bad question when you are trying to learn. This is why this forum is so good, there is so many members just trying to help out.

...  Sorry for the spam and hope you had an understanding of this thread before it was ruined

And people wonder why I just don't make the effort to be helpful any more!  YOU'RE WELCOME, COME AGAIN.

I'm sorry I don't know you guys so kind of thought i was being pulled down, but mmars thank you!!!
Also for your other topics

Peace typescore

I second harwil4u2.
All Qs are good qs.  You will get to know us, and of course some things may be lost in type-talk, but overall keep the thought of people trying to help. That's what 99% of people on here will do. In saying that, I cannot think of the other 1%.