NatWest to auction hundreds of rare and collectable banknotes

Some of NatWest’s rarest and most collectible banknotes will be auctioned, with proceeds donated to charity.

Hundreds of notes will go under the hammer with a face value of around £21,000, but leading auctioneer of collectible banknotes, Spink, estimates the auctions could fetch more than £400,000.

Some of the most collectible notes are also the newest and are valued at £1,800 each.

For example, a never-circulated £50 Royal Bank of Scotland polymer note serial number AA888888 featuring Flora Stevenson and Randolph Crescent in Edinburgh has a top estimated value of £1,800.

Low serial number bills are also desirable to collectors, and most of these bills will raise about ten times their face value.

The auctions include notes from the Royal Bank of Scotland, Ulster Bank, the historic National Bank of Scotland and the Bank of England.

Some of the more historic banknotes date back over 100 years to the First World War and include a 1919 Bank of England 10 shilling note.

The first of three auctions will be held on 29 November 2022 with proceeds donated to the Trussell Trust, whose network of more than 1,300 food bank centers across the UK supports people who cannot afford the essentials.

Another auction will take place on December 16, 2022, with another auction scheduled for January 19 next year.

All auctions take place at Spink’s headquarters on Southampton Row in London.

What makes banknotes valuable?

While note collecting may not be as popular as stamp or coin collecting, it still has a huge following worldwide.

Banknotes that are unique and rare tend to be the most sought after. This could be a wanted serial number, certain images or a historical context.

Arnas Savickas, head of banknotes in Europe and the US at Spink says: ‘Expensive and collectible banknotes are usually expensive because they are scarce and have historical heritage.

“For example, Palestinian banknotes or Zanzibar banknotes, or Hijrah’s banknotes because Hijrah was invaded and now it is Medina and almost all its banknotes have been destroyed. So they are extremely rare and therefore expensive.’

The state of the banknote is also important. According to auctioneer Warwick & Warwick, pristine uncirculated notes are usually worth more than their circulated counterparts.

‘Well-centered bills’ also tend to be of greater value, due to their greater desirability among collectors.

Damage or minor defects cause the value to drop. The greater the damage, the greater the loss.

Some note collectors also focus on specific styles or images. These can be animals or buildings and landmarks, for example.

Savickas adds: ‘It could be a sofa with special design features that make it attractive.

‘It may be that there is a peculiarity or design of the banknote. For example, someone wants to collect all bird series on the banknotes he can get his hands on.’

What is special about the NatWest auction?

What makes the notes sold at the NatWest auction more rare are the serial numbers, Savickas said.

Most British banknotes have a standard six-digit serial number.

Some banknote collectors like to get their hands on notes with a unique or appealing serial number.

“There are low serial numbers,” says Savickas, “it starts at four and goes to what we call fixed numbers, meaning all serial numbers are one number. For example, there are eight digits of one.

‘In this auction on Tuesday we also have four sheets. Sheets are of example banknotes. Specimen banknotes are not legal tender.

“They’re real banknotes, but they either have stamps or serial numbers like zero and that’s very collectable because it’s very rare.

“For these RBS notes to be sold at auction, the copies are only available from these sheets. So if someone wants a copy, they’ll have to have that magazine.’

Do your homework before collecting

Collecting banknotes is more of a hobby than an investment, so for anyone thinking of getting started, it’s important to keep that in mind.

That said, like anything with a finite supply, there is a chance that values ​​will rise over time.

“I wouldn’t advise anyone to put all their money into banknote collecting as a way of investing,” says Savickas, “just as I wouldn’t advise them to put all their savings into crypto either.

“But if I were just making an opinion-based historical observation, yes, everything that is fixed in supply does indeed increase in value over time – at least in line with inflation.

“Medium to long-term banknotes have remained fairly consistent with inflation.”

However, rather than focusing on potential gains, Savickas advises that it’s best to focus on enjoying the new hobby. But make sure you do your homework first.

“Ultimately, do your research and don’t buy anything impulsively,” he adds.