Are Most Modern Star Notes "Common?"

I pose this question because it seems that in the last 5 or so years
there has been an increasing awareness by even casual collectors that
star notes are printed in small quantities compared to most non-star
issues. Ebay is now awash with modern star notes fresh from the bank.
And, it is quite possible to buy packs of new star note issues from
dealers (and there is a strong market for these packs too).

Frankly, star notes are being pulled from circulation in vastly larger
numbers than even the very recent past. In fact, they are being saved
in FAR greater numbers than regular FRN blocks. In my experience, it
is now FAR easier to find newer star note issues than to find
particular district blocks (I'm not talking about $1 notes here, but
$5 through $100s). It seems that, with rare exception, the only time
regular issue notes get saved is if they have a fancy serial number.

So is buying packs of stars to "put away" a good investment, or are we
seeing a modern version of the 1950D nickel phenomenon? I predict
that as collecting FRNs matures, the real "modern" rarities will be
many of the non-star blocks that nobody bothered to save, because they
were just too common.

Star Notes are the most valuable and sought after type of US Currency
produced in this decade! To those who do not know... Star Notes are actually
replacement notes substituted by the Bureau of Printing and Engraving when
dollar bills are made with Errors or Misprints. When an Error is made, and
not suitable for circulation as determined by the BEP's inspectors, it is
destroyed! But.... it is against policy to produce a dollar bill's serial
number more than once, so ... a Star Note is used to replace the ones in
error. Due to the low production numbers of these type of notes, and their
unique attributes, they are considered rare, collectible and painstakingly
sought after.


"Fiona Always" wrote in message
om...
I pose this question because it seems that in the last 5 or so years
there has been an increasing awareness by even casual collectors that
star notes are printed in small quantities compared to most non-star
issues. Ebay is now awash with modern star notes fresh from the bank.
And, it is quite possible to buy packs of new star note issues from
dealers (and there is a strong market for these packs too).

Frankly, star notes are being pulled from circulation in vastly larger
numbers than even the very recent past. In fact, they are being saved
in FAR greater numbers than regular FRN blocks. In my experience, it
is now FAR easier to find newer star note issues than to find
particular district blocks (I'm not talking about $1 notes here, but
$5 through $100s). It seems that, with rare exception, the only time
regular issue notes get saved is if they have a fancy serial number.

So is buying packs of stars to "put away" a good investment, or are we
seeing a modern version of the 1950D nickel phenomenon? I predict
that as collecting FRNs matures, the real "modern" rarities will be
many of the non-star blocks that nobody bothered to save, because they
were just too common.

This sounds like someone making an artificial market. If you read the monthly
BEP reports - published every month in Bank Note Reporter - you will find that
star notes are being printed by the millions, for all denominations. The recent
series star notes are not rare and should bring only a very small premium,
especially in circulated grades.
Alan Herbert
The AnswerMan

From: answerman2

This sounds like someone making an artificial market. If you read the monthly
BEP reports - published every month in Bank Note Reporter - you will find that
star notes are being printed by the millions, for all denominations. The recent
series star notes are not rare and should bring only a very small premium,
especially in circulated grades.

Got but one nit to pick with that, Alan - yes, star notes are being printed by
the millions, for all denominations, but not all are always issued - so we
don't know "how scarce" any one of them, in particular, may be issued until the
final count of the current series is satisfied and the BEP has moved onward to
the next Series.

Even then, the BEP does not release the number of Star Notes actually used nor
'destroyed' (if and when); just how many were printed. They are used on an "as
needed" basis.

I agree with the rest, especially: "the recent series star notes are not rare
and should bring only a very small premium, especially in circulated grades".
Seems that the BEP makes and catches more than average mistakes. The good
news: bona fide error notes might become all the more desirable.

JMHO
8-|
- Coin Saver

I wish I could agree with Mr,Herbert But not all star notes blocks are common
some are very scarce ,even though quite a few were printed ,Has anyone seen a
1999 $5 Kstar or a 2001 $10 K star
marty

(Vinkjm) wrote
I wish I could agree with Mr,Herbert But not all star notes blocks are common
some are very scarce ,even though quite a few were printed ,Has anyone seen a
1999 $5 Kstar or a 2001 $10 K star

Yes, not all star blocks are common at all. As was pointed out:

coinsaver wrote:
star notes are being printed by
the millions, for all denominations, but not all are always issued
- so we
don't know "how scarce" any one of them, in particular, may be
issued until the final count of the current series is satisfied and
the BEP has moved
onward to the next Series.

But, my point was that in times past star notes were not saved in the
huge numbers they are today. Now, it seems everyone has an awareness
of star notes and they are being pulled (when they show up) by bank
tellers and others straight from the new packs. The same cannot be
said for all the regular blocks of $5, $10, $20, $50 and $100s. For
instance, try to put togeher a complete block run of $20 from 1980s
series to present on a big district like SF (the 1985 series has 12
different blocks alone). This is very hard to accomplish; whereas
finding all the star notes is by comparison relatively simple.

As collecting all blocks on particular districts becomes more popular
for other than just $1 notes (which it will) there will be a
recognition that some block combinations just weren't saved.

(Fiona Always) wrote in message . com...
(Vinkjm) wrote
I wish I could agree with Mr,Herbert But not all star notes blocks are common
some are very scarce ,even though quite a few were printed ,Has anyone seen a
1999 $5 Kstar or a 2001 $10 K star

Yes, not all star blocks are common at all. As was pointed out:

coinsaver wrote:
star notes are being printed by
the millions, for all denominations, but not all are always issued
- so we
don't know "how scarce" any one of them, in particular, may be
issued until the final count of the current series is satisfied and
the BEP has moved
onward to the next Series.

But, my point was that in times past star notes were not saved in the
huge numbers they are today. Now, it seems everyone has an awareness
of star notes and they are being pulled (when they show up) by bank
tellers and others straight from the new packs. The same cannot be
said for all the regular blocks of $5, $10, $20, $50 and $100s. For
instance, try to put togeher a complete block run of $20 from 1980s
series to present on a big district like SF (the 1985 series has 12
different blocks alone). This is very hard to accomplish; whereas
finding all the star notes is by comparison relatively simple.

As collecting all blocks on particular districts becomes more popular
for other than just $1 notes (which it will) there will be a
recognition that some block combinations just weren't saved.

The big increase in star note collecting's popularity semms to have
started long ago. From 1928 to 1962(thru 1950C) the premium for CU $10
FRN star's was on the average 6:1 or 7:1. Since 1963, the average has
been 2.5:1 or less. That's by series and comes from the BNR price
guide. If anything, its' price premiums for recent stars seem to be
greater than those of other price guides.

(jimmyfc) wrote

The big increase in star note collecting's popularity semms to have
started long ago. From 1928 to 1962(thru 1950C) the premium for CU $10
FRN star's was on the average 6:1 or 7:1. Since 1963, the average has
been 2.5:1 or less. That's by series and comes from the BNR price
guide. If anything, its' price premiums for recent stars seem to be
greater than those of other price guides.


There was no "big" increase in star note collecting "long" ago. In the
early 60s there were few paper collectors; of those few collected
small size notes, fewer still small FRNs, and far fewer of these
collectd star notes with any consistency.

Price differences between regular and star notes do not have a direct
correlation of how many were saved or collected. Pricing of most star
notes has only begun maturing in the last 5 to 8 years. Pick up some
pricing catalogs going back 5, 10, 15, 20, 25, 30 years and even
earlier; the price differences between early (and rare) stars and non
star notes was more like 1.75 to 1 for later stars it was 1.2 to 1.

Why, because the market for star notes was very thin and many
collectors didn't think buying a star note for even a modest premium
was worth the money.

Demand today is that early stars often command huge premiums over the
non-star equivalents. (And BTW, BNR pricing bears almost no relation
to market values and should not be used as reliable reference). More
modern stars were both produced in larger numbers (than early stars)
and DEMAND has not reached a point where we really know how common or
rare they really are.

In fact, I will assert that price is almost no indication of rarity
for many more modern small size notes. Despite often modest catalog
values for many modern FRNs, good luck find examples, price
notwithstanding.

You need only look back a few years to see that items once considered
"common" are now highly regarded, hard to find and avidly collected.
Unlike almost every US coin, most US paper money is rare, and even the
addition of a few more collectors seeking a particular item will dry
up any "supply" (if it exists) and drive prices to unheard of levels.

I would like to append my prior post by noting that, with the
exception of the Goodman/Schwartz/O'Donnell Standard Handbook of
Modern U.S. Paper Money (later by O'Donnell) starting with its frst
edition in 1968, no paper money reference (including Donlon's many
editions of U.S. Small Size Paper Money catalogs-through 1977) even
listed or priced small size star notes.

Small size stars were collected by very few very specialized
collectors and prices reflected this. And stars from series such as US
Notes, WWII emergency issues and Silver Certificates were the primary
focus of collectors. Almost no one seriously collected FRN or FRBN
star notes until more recent years.

(Fiona Always) wrote in message . com...
(jimmyfc) wrote

The big increase in star note collecting's popularity semms to have
started long ago. From 1928 to 1962(thru 1950C) the premium for CU $10
FRN star's was on the average 6:1 or 7:1. Since 1963, the average has
been 2.5:1 or less. That's by series and comes from the BNR price
guide. If anything, its' price premiums for recent stars seem to be
greater than those of other price guides.


There was no "big" increase in star note collecting "long" ago. In the
early 60s there were few paper collectors; of those few collected
small size notes, fewer still small FRNs, and far fewer of these
collectd star notes with any consistency.

Price differences between regular and star notes do not have a direct
correlation of how many were saved or collected. Pricing of most star
notes has only begun maturing in the last 5 to 8 years. Pick up some
pricing catalogs going back 5, 10, 15, 20, 25, 30 years and even
earlier; the price differences between early (and rare) stars and non
star notes was more like 1.75 to 1 for later stars it was 1.2 to 1.

Why, because the market for star notes was very thin and many
collectors didn't think buying a star note for even a modest premium
was worth the money.

Demand today is that early stars often command huge premiums over the
non-star equivalents. (And BTW, BNR pricing bears almost no relation
to market values and should not be used as reliable reference). More
modern stars were both produced in larger numbers (than early stars)
and DEMAND has not reached a point where we really know how common or
rare they really are.

In fact, I will assert that price is almost no indication of rarity
for many more modern small size notes. Despite often modest catalog
values for many modern FRNs, good luck find examples, price
notwithstanding.

You need only look back a few years to see that items once considered
"common" are now highly regarded, hard to find and avidly collected.
Unlike almost every US coin, most US paper money is rare, and even the
addition of a few more collectors seeking a particular item will dry
up any "supply" (if it exists) and drive prices to unheard of levels.

You make some good points, but I am still not convinced. I was a coin
collector,as a kid, during the 1960's and I recall hearing about star
notes and about people saving them back then. The real question is:
when did interest in star notes reach a point where they were saved at
a significantly greater rate then normal notes? It wasn't the serious
collecter who was putting away then current star notes 40 years ago.
They were interested in findng 28c or 28d SCs or similar notes. It was
the casual collector or hoarder, or even dealer, who had heard about
star notes and was putting away the new series 1963 $1, as he found
them, who is responsible for them to be saved at a higher rate.
You are correct that most early star collecting was in low
denomination,SCs and USNs.(although I suspect $1 FRN stars were saved
from the start)I am not sure why price multiples for FRNs dropped as
early as they did. The price multiple could be something of a 'leading
indicator' as to the rise of star collecting. A collector of the mid
70's pulling 20$ stars from circulation might find that notes from a
decade or more previous were still circulating and therfore would be
able to get stars from earlier series. Conversely catalogs are likely
to be 'lagging indicators' as to the collecting of stars. Once the
format of a catalog is established the authors may become hidebound
and conservative, reluctant to modify their catalog until several
years after a new form of collecting is well established.

Back to the main thread; I have a question. How have changes in the
method of distribution effected the saving of star notes? At one time
stars were issued one at a time or a few at a time. More recently,
stars often appear in complete packs. This would make the saving of
star notes a much easier task and should result in increased survival
rates. Am I correct, and if so does anyone know at what point in time
this occured?