Error Notes - Any collectors here

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I was thinking to concentrate on collecting error notes. 

Is there any investment value to these notes or is it more of a personal preference thing.  Prices for these notes are pretty high, depending on the error, so my collection (to be) will not be substantial.

I was thinking to concentrate on collecting error notes. 

Is there any investment value to these notes or is it more of a personal preference thing.  Prices for these notes are pretty high, depending on the error, so my collection (to be) will not be substantial.

The one thing you have to realize it that there is a multitude of different error notes that range from very minor errors to the extreme...and of course they will be priced accordingly.
Also, since many errors are found in circulation the prices will range based on condition as well.
I personally think error notes are great to collect and yes I believe that the rarer or more unique the error, the more likely it will have greater investment value in the future. In most cases, many error notes of a certain type are found in such small quantities that the demand is much greater than the supply, which of course leads to higher prices.
That being said, I think that some errors, although not showpieces, are still neat to have just because they are different or flawed. I don't believe every note has to be something spectacular especially if you are collecting just for a hobby and not always looking for the pot of gold at the end of the rainbow.
FRIEDSQUID

Collect error notes only if you really enjoy them and only if you have no expectation of making a profit on them in the long term.

Collect error notes only if you really enjoy them and only if you have no expectation of making a profit on them in the long term.

I would agree that you should collect error notes because you enjoy them, but I strongly disagree that it cannot  be an investment that will turn a profit when the time comes to sell them.  I can tell you that unequivocally from personal experience.

I have collected Canadian paper money for almost 25 years and during that time I have acquired a large number of error notes.    The key to making them an investment vehicle is to understand the uniqueness of each error and acquire those that are visually appealing, as well as, scarce.  It takes time and research to truly understand and determine the significance and scarcity of a particular error note.

I have avoided mismatched serial number notes only because of the vast number in the marketplace.  I never buy a modern error note until sufficient time has passed to determine the actual number that may exist (e.g. APE/APF mismatched prefix).

Like any investment you need to do your due diligence before making a purchase.

Here is a small sample of some error notes that I acquired over the years, and have either sold or received offers, that significantly exceeded my purchase price.


Sequential pair of 1954 $2 modified cutting/fold errors

{http://img815.imageshack.us/img815/5659/19542foldfront.jpg:http://img815.imageshack.us/img815/5659/19542foldfront.th.jpg}

{http://img12.imageshack.us/img12/4636/19542fold2front.jpg:http://img12.imageshack.us/img12/4636/19542fold2front.th.jpg}


GUnc 1954 $5 Modified Inverted Signature Error

{http://img843.imageshack.us/img843/3199/19545invsignaturesfront.jpg:http://img843.imageshack.us/img843/3199/19545invsignaturesfront.th.jpg}


1986 $2 cutting/fold error with colour bar and margin notations

{http://img690.imageshack.us/img690/5756/19862ebz8837792front.jpg:http://img690.imageshack.us/img690/5756/19862ebz8837792front.th.jpg}

{http://img6.imageshack.us/img6/1662/19862ebz8837792back.jpg:http://img6.imageshack.us/img6/1662/19862ebz8837792back.th.jpg}


Gem Unc 1986 $2 Intaglio Print Error

{http://img94.imageshack.us/img94/1985/19862intaglioerrorboth.jpg:http://img94.imageshack.us/img94/1985/19862intaglioerrorboth.th.jpg}

[edit] Hosted the pics and converted them into thumbnails - Wizard1[/edit]

wow those are spectacular. 

Here's one of mine that I really love to look at

{http://img594.imageshack.us/img594/1186/inverted2.jpg:http://img594.imageshack.us/img594/1186/inverted2.th.jpg}

I agree with Canada-banknotes assessment on error notes being investment vehicles, as long as demand is high and supply is low (relatively speaking), you should be able to realize some good returns on investment.

The key is to do your research with diligence so when the time comes that something really rare or unique pops up, you act quickly and snap it up at a price you know is reasonable and not overpay for it.

Looking at the $2. bills with cutting error, I'm wondering how hard would it be for someone who purchase a sheet of 2 x $2. bills from the mint/dealer and get creative with a pair of sissors.   I don't plan on collecting mismatched serials either. I don't feel they are unique enough. But I like that inverted $1. US  I plan on  bidding on a similar one this week, as soon as I get a copy of the US paper error money guide.

That Intaglio Print Error is one to kill for. How did you acquire that one.

Looking at the $2. bills with cutting error, I'm wondering how hard would it be for someone who purchase a sheet of 2 x $2. bills from the mint/dealer and get creative with a pair of sissors.   I don't plan on collecting mismatched serials either. I don't feel they are unique enough. But I like that inverted $1. US  I plan on  bidding on a similar one this week, as soon as I get a copy of the US paper error money guide.

In terms of the miscut notes the best way to tell is by looking at the prefixes. You just need to be wary about miscut notes from known sheets.

The Canadian Government Paper Money catalog is a invaluable and informative resource that no collector should be without!

As for US paper money error guides I highly suggest you pick up "United States Paper Money Errors" 3rd Edition by Dr. Frederick J. Bart. Its one of the most comprehensive guides for US paper money errors

Hi Wizard, where did you pick up your copy of the 3rd edition US paper money errors.  Amazon.ca don't even have the 2nd edition back in stock yet.  Thanks

In response to the original question, I am not a big fan of error notes.
The few that I have bought was with the intention of reselling for a profit.
It worked, but making a profit on error notes is very difficult unless you get a great deal when buying them.
I got a few with an estate lot and did well on those.
I would say that you should only collect error notes for their personal value to you.
Error notes do not make a good investment generally.

In terms of the miscut notes the best way to tell is by looking at the prefixes. You just need to be wary about miscut notes from known sheets.

Problem is, if what kinghaku wrote in this old post is true, sheets of "anything" were at one time available for sale.  I have been suspicious of all "cutting errors" on Birds and later series notes since reading that post.