| Author |
 Replies: 24 / Views: 5,393 |
|
Pillar of the Community
Canada
1461 Posts |
So...As reported in the news the BofC is getting ready to demonetize pre-1986 dated banknotes. Although the timeline to hand in your banknotes will likely extend to years, what do you think that will do to the numismatic values of some of these notes? With the exception of the obvious 1935, 1937 & 1954 DF notes where it's safe to say that the values will remain well above face, what is your opinion on what will happen to the rest? For example what will be the cutoff grade for a 73 Dollar? Once the exercise is done, how far below face will it trade at AU? Opinions, comments welcome...
*** Moved by Staff moved to a more appropriate forum. ***
|
|
|
|
Pillar of the Community
United States
992 Posts |
Like you say, the earlier notes are and will remain collector's items, with collector's prices.
The 1973 stuff, I don't see too many owners suddenly deciding their $1 or $20 bills being now worthless, they paid face value for them, as did everyone else. The price to collector's is going to remain pretty much where it is today.
|
|
Pillar of the Community
Canada
1046 Posts |
|
|
Pillar of the Community
Canada
5324 Posts |
My understanding is that these bills will always be redeemable at the BOC forever, so it might help the newer bills will get a rash turn in and causing a limited shortage in the long run
|
|
Pillar of the Community
United States
3473 Posts |
Quote:
My understanding is that these bills will always be redeemable at the BOC forever If they're demonitzed, doesn't that mean the government has assigned a value of $0.00 to them? |
|
Pillar of the Community
Canada
5324 Posts |
The BOC site does say that removing legal tender status you will still be able to return okd notes to both banks and BOC for face value, not sure why they are creating this panic for if everything is status quo. My guess they want the bird series 1000 bill to be returned for what ever reasoning
|
|
Pillar of the Community
 Canada
1461 Posts |
Personally I am of the opinion that anything common and circulated will drop below face value after the deadline (years from now). I suspect the old British pound coins that had to be turned in by Oct 15 of last year (and still can be during this "adjustment" period) will drop below their face value once the door shuts.
|
|
Valued Member
Canada
247 Posts |
I understand that the banknotes are being removed from legal tender( not be able to use for purchases at retailers)not demonitized as stated here in an earlier post. They will ALWAYS retain their facevalue at the banks.
|
|
Pillar of the Community
Canada
586 Posts |
I don't think people who still have these notes, will ever go to the grocery store and use them as currency or try and exchange them at a bank. (unless they inherit them and have no idea what they are).
For me this notes have already been demonetized and have taken on a sub market value. If anything this will increase the values going forward because every time some inheritor turns in those notes, that make one less around and and one less available to collectors. Making them scarce.
|
|
Bedrock of the Community
Australia
21788 Posts |
For common demonetized notes, their real value will decline in line with inflation.
Their current face value in the future will remain the same, compared to whatever happens to be circulating.
The scarce and rare notes will have a notaphilic* market trend value of their own.
* notaphilic:= the note version of 'numismatic' for coins.
|
|
Pillar of the Community
Canada
1461 Posts |
Of course depending on when demonetization may happen, I just don't see 1973 circulated banknotes keep their denominated value. (Assuming that we are defining demonetization as the Government and the banks will no longer accept these bills in exchange). As it is, today these notes have no collectible value today beyond face and most get banked. There are thousands of post war banknotes that have been demonetized around the world that have no value today.
|
|
Valued Member
Canada
247 Posts |
Hey Guys They are not DEMONITIZING the bills , they are removing them from legal tender Two different meanings
They will always retain their face value ALWAYS ,now that will dwindle with inflation , but as collectors go there will be less and less as people panic and turn them in
|
|
Pillar of the Community
Canada
586 Posts |
I have seen more $1000 notes popping up at auctions though. Not sure if its to take advantage of the the hype or people panicking and wanting to liquidate. I havn't seen these $500 bills though, wouldn't mind picking on of those up.
|
|
Pillar of the Community
Canada
1461 Posts |
Quote:
Hey Guys They are not DEMONITIZING the bills , they are removing them from legal tender Two different meanings. The main target of this exercise is the removal of the $1000 bills off the street due to its continuing use in crime. The ONLY way that can happen is to eventually demonetize the bill (or put a statute of limitations on cashing them out in not legal tender status). Otherwise it's a pointless exercise since in theory as long as the banks and the government accept them, the bills would still hold a value of $1000 on the street until they make their way back to a bank. And actually if you read some of the articles, the reporting insinuates that such statutes of limitation would be put on the bills. Edited by TheCoinHunter
03/28/2018 12:20 pm
|
|
Pillar of the Community
Canada
5324 Posts |
We have all seen movies and real time border patrol, the US mainly with sacks full of 100 dollar bills, I doubt the Canadian dealers are having sacks of 1000 bird series bills, the 10 to one ratio really makes very little difference, but a 7000 dollar bit coin might or shady real estate dealings or the Panama papers surely gives insight, yet the BOC is preoccupied with a minor billion dollar in the bird series.
|
|
Pillar of the Community
Canada
1192 Posts |
The whole idea that criminals use $1000 notes is actually absurd. They would want notes that don't attract attention, probably $20's.
Think of it this way, say I'm packing 25 kilograms of an illicit substance in a duffel bag. A quick google search puts the high end price wholesale for white powder at $15,000 per kilo. So that's $375,000. Banknotes are about 1 gram each, so $375k in 100's would weigh just 3.75 kilograms. Same amount in $20's would be 18.75 kg. Still less weight than the product being bought!
|
| |
Replies: 24 / Views: 5,393 |
Posted 03/23/2018 2:07 pm
