When it comes to rare currency, few varieties are as immediately recognizable and desirable as star notes. Even non-collectors can appreciate the allure of a crisp dollar bill with a star symbol emblazoned at the end of its serial number. But for collectors and dealers who truly understand the scarcity and significance of these special notes, that little star unlocks a world of numismatic intrigue.
In this comprehensive guide, we‘ll explore everything you need to know about star notes – their history, rarity, valuation, and how to cherrypick valuable examples hiding in plain sight. Whether you‘re a seasoned collector or just stumbled upon your first star note, you‘ll gain a new appreciation for these coveted replacements. Let‘s dive in!
What Exactly Is a Star Note?
Star notes, also known as replacement notes, are U.S. currency bills that feature a star (★) symbol at the end of their serial number. They have been used since 1910 to replace misprinted, damaged, or errored notes during the production process at the Bureau of Engraving and Printing (BEP) facilities.
When the BEP is printing a new series of notes, the bills are produced on large sheets with 32, 50, or 100 notes per sheet depending on the denomination. These sheets are fed through high-speed presses that print the intricate design elements and serial numbers. During quality control inspection, any sheets containing defective notes are removed from the print run. Defects can include ink smears, misalignments, paper folds, improper cutting, or other errors.
Misprinted sheets are replaced with a new sheet to maintain the correct number of notes in the series. However, using a normal replacement sheet would disrupt the sequence of serial numbers. So special star sheets are used that have their own independent serial number range. A star (★) is overprinted at the end of the serial number to visibly identify it as a replacement note.
This allows the BEP to swap in star notes to replace the misprints while preserving the expected order and totals of serial numbers in the main print run. It‘s a clever solution that the BEP has used for over a century to maintain accountability. As a happy byproduct, it also created an exciting collectible variety for generations of numismatists to pursue.
How Rare Are Star Notes?
Like many details about U.S. currency production, the BEP does not share exact figures on how many star notes are printed for each series. Based on analysis by numismatic experts, the generally accepted estimate is that star notes represent roughly 1-1.5% of the total print run for a given denomination and series.
However, this replacement rate can vary quite a bit based on the quality control standards and printing methods of the time. Older series from the early-to-mid 20th century tend to have higher rates of replacement around 2-3% due to more frequent misprints. Modern series produced with more efficient technology typically see lower error rates and star note replacements closer to 0.5-1%.
It‘s important to note that these percentages translate to very different total quantities of star notes depending on the series. For example, 1% of the Series 1981 $1 Federal Reserve Notes is nearly 20 million star notes. In contrast, 1% of the Series 1928 $1000 Gold Certificates is only a handful of star notes.
Star notes as a whole are obviously much more scarce than regular notes. But there is a wide spectrum of rarity within star notes based on their series, denomination, issuing district, and other factors. Some star notes are exceptionally common, while others are prohibitively rare. We‘ll explore these elements more in the valuation section.
Determining a Star Note‘s Value
Not all star notes are inherently rare or valuable. The value of a particular star note is influenced by several key factors:
Age/Series – In general, the age of a star note is one of the primary drivers of its scarcity and value. Star notes from the early 1900s to about 1950 are much more rare than modern issues, with some exceptions. Most collectors consider the "golden era" of star notes to be series from 1928 to 1950.
Denomination – Within the same series, star notes of higher denominations like $20, $50, and $100 bills are significantly more scarce than $1 and $5 notes. Far fewer of these higher value notes were printed and their star notes can be extremely rare, especially in older series.
Issuing District – For some series, the issuing Federal Reserve Bank can dramatically impact a star note‘s rarity. Due to uneven distribution of currency from the twelve Federal Reserve districts, certain districts have very limited supplies of star notes for some series and denominations.
Condition – As with all collectible currency, the physical condition of a star note is a major element of its market value. Star notes in pristine, uncirculated condition with perfect originality will command substantial premiums over circulated examples with wear, soiling, or damage.
Seal & Serial Varieties – Certain printing variations are highly sought-after by collectors. Red seal notes, mules, and the rare blue and yellow seals are prized. Low serial numbers (especially 100 or less), ladders, radars, solids, and other "fancy" serial numbers can also boost a star note‘s appeal and value.
To demonstrate how these factors combine to determine valuation, here is a sample of star note values in Very Fine condition across several key series:
| Series | $1 | $5 | $10 | $20 | $50 | $100 |
|---|---|---|---|---|---|---|
| 1928 | $250 | $900 | $1500 | $3000 | $9000 | $30,000 |
| 1934 | $50 | $150 | $300 | $800 | $2000 | $4000 |
| 1950 | $20 | $50 | $75 | $100 | $600 | $1500 |
| 1963 | $15 | $25 | $30 | $50 | $200 | $300 |
| 1981 | $5 | $10 | $10 | $15 | $30 | $80 |
Note that these are representative mid-range values for the grade. Star notes at the top-end of the condition spectrum can be worth multiples of these prices. And some exceptionally rare issues or serial numbers can reach six-figure prices in the right circumstances.
Incredible Star Note Sales & Discoveries
Over the decades, the star note market has seen its share of remarkable specimens and eye-popping auction results. Here are a few of the most notable stars in the numismatic cosmos:
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In 2013, a 1928 $10,000 Gold Certificate star note sold for $2.5 million, setting a world record for the most expensive U.S. banknote ever sold at auction. It is one of only two 1928 $10,000 star notes known to exist.
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A 1934 Chicago $5000 Federal Reserve star note brought $1.8 million in a 2008 auction. It is the only star note for this series and denomination confirmed to still exist. The regular 1934 $5000 is rare enough, but the star is a miracle of survival.
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In 2004, a unique 1890 $1000 Treasury Note with a star serial number was discovered in an old paper money collection. It remains the only pre-1910 star note known to the collecting community. It last sold for $3.29 million in 2013.
While these ultra-rarities are out of reach for most collectors, it proves that star notes still have the potential for remarkable finds. Even in the modern era, new varieties and exciting discoveries await. For example, the BEP recently started producing star notes for the $2 denomination for the first time ever. This has sparked a wave of interest in $2 star notes, with collectors scrambling to find them in circulation.
Tips for Collecting Star Notes
Building a collection of star notes can be a fun and rewarding pursuit. You can assemble sets by denomination, series, district, or fancy serial numbers. Many collectors enjoy the challenge of finding star notes at face value in circulation to get an immediate return on their "investment."
Here are some strategies for cherry picking valuable star notes on a budget:
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Always check your change and ask to see any star notes when visiting banks or stores. About 1 in every 100 notes is a star, so you‘ll have many opportunities to cherrypick them at face value if you get in the habit of looking.
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Focus on $10 and $20 star notes if possible, as they have slightly better odds of being valuable. High grade examples from the 1950s and 1960s are still findable in circulation and can be worth $50-$100 or more.
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$1 star notes from 1935 to 1957 are also worth watching for. Even in heavily circulated condition, these can have a modest premium over face value. Uncirculated examples are worth $100-$300 each.
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Online marketplaces like eBay can be a great source for rare star notes if you learn to identify the key varieties. Study the serial number ranges and variations for each series so you can spot the underpriced notes that others may overlook.
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Consider specializing in a specific series or district for your star note collection. Having a focused approach will help you build expertise and can be more satisfying than a scattershot accumulation of random notes.
Whether your budget is $50 or $500,000, there are exciting star note opportunities for every collector. Spend some time exploring the various series and their intricacies. Network with other collectors to trade duplicates and get great deals. Before long, you‘ll have a constellation of numismatic stars in your collection!
Preserving Star Notes
Once you have assembled some star notes that you‘re proud of, it‘s crucial to store and handle them properly to maintain their condition and value. Here are some best practices:
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Always hold a note by the edges, and avoid touching the front or back as much as possible. Oils and dirt from handling can quickly degrade a note‘s appearance and eye appeal.
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Store notes flat and out of direct sunlight in a cool, dry environment. Minimize exposure to humidity, heat, and UV light which can cause fading and discoloration over time.
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Use archival-quality currency sleeves or holders for protection. Soft plastic poly sleeves are affordable and convenient for bulk storage. Rigid acrylic holders offer more durability and a professional look for your best notes.
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Consider getting your most valuable star notes professionally graded and encapsulated by PCGS Currency or PMG. Not only do their inert plastic holders provide superior long-term preservation, but a high grade from these trusted companies can also boost the market value of your notes.
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If you want to display some of your star note collection, use only archival framing materials and UV-protected glass. Avoid taping or mounting notes with any adhesives. Limit the duration of their display to prevent deterioration.
With proper care and storage, your star notes will remain in great shape for generations of collectors to enjoy. Think of yourself as a temporary custodian of these numismatic treasures, preserving them for history until they pass to the next owner in the future.
Final Thoughts
We‘ve covered a lot of ground in this guide to star note collecting. From the history and anatomy of replacement notes to their varying degrees of scarcity and value, I hope you have gained a solid foundation on these desirable rarities. Whether you simply appreciate them as a curiosity or want to specialize in their intricacies, star notes make a wonderful niche to collect.
Regardless of your budget, you can engage in the thrill of the hunt and cherry pick valuable star notes from circulation with the right knowledge. Study the series that interest you and don‘t be afraid to jump on exciting deals when you find them. The 1% may run the world, but anyone can take a shot at finding the elusive 1% of the currency market that star notes represent.
At the end of the day, collect what brings you enjoyment. Star notes are rife with history, beauty, and the tantalizing promise of more discoveries to be made. Those are qualities that speak to our human spirit and the enduring appeal of numismatics. Clear skies and happy hunting!
