This isn’t correct and the value would be $1,478.31
That is right - $1100 dollar is what I said where I meant $1000. Thx for setting that thing right.
Are you only interested in a gross return of 7%? Or a net return after inflation of 7%? This is a common mistake made by many which would explain mosts disappointing investment gains over time.
Point is well taken but in the current economic environment I would be happy with a 7% gross return.
Any suggestions?
I find in interesting that true collectors do not want to make returns on their bank notes since such act seems to instantly make then speculators.
In my experience there are lots more collectors than the membership of the CPM forum. Many of these people are collecting because they find something fun and interesting in doing so. How do I know? Well invariably anytime I mention my interest in arm-chair numismatic to someone they bring something out of their "collections" to share with me. I am sure others have had similar experience. Many of these people "believe" that as things get old they will have more value. Even an arm chair collector like me often knows that a vast majority of such collections are no more than face value.
So of course everyone wants to make money on their collection. Who does not. You would be crazy not to expect to. I think what most people mean by speculation is that there is no resonable way of assuring with an informed probability a the time of purchase what if any kind of collection will provide a stipulated return. So it is not the act of collection that makes anyone a speculator nor is it the act of expecting a return. To me speculators are not interested in collecting at all. While collectors are not only interested in the intrinsic value of collecting but MAY (for emphasis) also be interested in getting a return. In fact as you mentioned it takes a seasoned collector (often with an appetite for risk) to do both and most collectors do not fall into this category.
Although I have only heard people say that they buy their collections for the pure joy of collecting, I can say after hundreds of transitions I have never bought from such collectors but I’m still looking for them as posts on the forum alludes to their existence.
I have seen this sentiment expressed before but I am not sure what it means. Guys like me who collect for fun have nothing worthwhile to offer to seasoned collectors
. So perhaps that is why you have never bought from people like us who see better return on the money than investing in high priced radars and replacements whose values have no basis other than those published in some catalogs.
Here is what gets me excited and perhaps everyone in this forum may laugh at me but thats what it is. Call me a loser if you will but that's what I mean by finding a meaning to your collection.
{http://img831.imageshack.us/img831/5073/5aontower.jpg:http://img831.imageshack.us/img831/5073/5aontower.th.jpg}
What do you see? The A forming the top of the roof as if it was a sloped roof with an apex rather than with a flat portion.
Would anyone be willing to buy this if I were to offer it for sale? Would Charlton even list it? I am willing to take offers beyond my intrinsic joy reserve of $50.
There we go. Once everyone has stopped laughing at my asking $50 for it will be clear why there is nothing to buy from people like me. But don't get me wrong I am having as much or more fun as a person with all zeros in collection or a bunch of different prefixes with same serial numbers. At least I do not have to worry about safekeeping my note and having it lost in mail.
As an example, a high-risk investment is someone that buys a house and leverages his or her investment by 20 to 1 (5% down/95% Debt), as a 10% drop would be a 200% loss. A bank note cannot go to zero, only face value. Calling it high risk and speculative is a little exaggerated. People’s emotions are what truly make things risky.
I am not sure I understand that. People's emotions are what leads them to make certain decision. The fact that I did not buy into Bre-X did not make it any less risky and/or speculative. Its just that I did not suffer a loss similar to the ones that did.
Besides if a person was ONLY (for emphasis) buying the home for selling it in short term it would certainly qualify in a manner that was described. If they were buying it to live in and they were able to carry their mortgage it would not matter at all. Exactly as the collector who collects for fun.
Are you implying that ones that make money aren’t able to enjoy their collections? Perhaps they can enjoy it so much more since they get much more bang for their buck 
Not at all. Kudos to anyone who can make money while collecting. Hey heck if I can do what such collectors can do and with the same certainty that I can going into an investment like the S&P 500 index I will do it.
So far the only sure way I have seen to make such money in banknotes is to get hold of bricks and hope to find replacements and special numbers at face value and to sell them slowly into the market.
If there is a way to make money by buying from a dealer or from a secondary market I would like to learn that. If there is anyone out there who can teach me how to do it I will eagerly pay to learn - a fee commensurate with the epxected return beyond what the S&P 500 index has netted me over the long term.
