April 2025 Greensheet Market Analysis: In Focus: Large Size Federal Reserve Notes

Certainly a correction has taken place, with prices realized more volatile than what the market has become accustomed to over the past three years. It appears evident that some of the larger buyers—whether they be advanced collectors or dealer market-makers—have scaled back their spending and are being more judicious with their purchases. This is particularly seen in series that are largely collector-driven and specialized, such as National Bank Notes, Star Replacement Notes, and Military Payment Certificates. Other series, such as Large Size Gold Certificates and Legal Tenders are a bit more resilient due to their popularity with a wider audience and the ongoing buying of promoters and telemarketing firms.

In observing the data from the first few major auctions of 2025, two series that stand out from a pricing perspective are Large Size Federal Reserve Bank Notes (FRBN) and Federal Reserve Notes (FRN). While similar in name, their issuance differed in that the FRBNs were issued by and were the liability of the individual Federal Reserve banks that issued them, while FRNs were liabilities of the United States itself, via the Federal Reserve system. The FRBNs also distinctly have the words National Currency on them and were only issued up to the $50 denomination. FRNs were issued all the way up to the $10,000 denomination and unlike FRBNs come with both red and blue Treasury seals.

The $50 FRBN (Fr.-831) was issued by only one bank, the St. Louis branch, and as a type it is always sought out by collectors when offered. A PCGS Banknote-graded AU58 example was the highest priced FRBN in the Heritage FUN sale in January bringing a final price of $38,400. This note is a prime example of what kind of price swings tend to occur within this series. Looking at the AU58 grade specifically, the note sold in January was previously auctioned in 2017, while in a PCGS Currency holder for $35,250. A different piece (S/N H138A), also in a PCGS Currency holder, sold in 2018 for $49,200. The key difference is that the higher priced note bore the PPQ qualifier. Meanwhile, a PMG graded AU58 sold in 2021 for $50,400 and on this same note’s reoffering in January 2024 it brought $42,000. The finest known Fr.-831 is a PMG CU64 note that sold in 2020 as part of the Pogue Collection for $43,200. So while this note trades in a steady range, there is a spread based on market conditions. Looking at another scarce FRBN, the $10 issued by the Kansas City branch with the Helm-Miller bank signature combination of which there is only six extant, we find a PMG VF30 example sold in the FUN sale for $12,000. According to the auction catalog, this same note sold for $21,850 back in 2004; in the interim, Lyn Knight sold it in 2012 for $18,400. At the very peak of the 21st century market so far in 2008, a PMG VF35 note sold as part of the Flynn Collection for $43,125. This note has yet to reappear in public auction since then. The finest Fr.-818 is a PMG AU58EPQ that Heritage sold in 2021 for $26,400.

As mentioned, Federal Reserve Notes come in two seal colors, and the earlier-issued red seals are much scarcer than their blue seal counterparts. The top FRN in the FUN sale was a Boston $100 Red Seal (Fr.-1072a) in stunning PMG Superb Gem 67 that would serve as an ideal candidate for a premier Type set. The sale price was $52,800, while a decade ago the same note brought $74,750. While high denominations of FRBNs were not issued, $500 and above FRNs have always been popular for both their impactful designs and their scarcity. A $500 from the Kansas City branch, (Fr.-1132-J) certified PCGS Banknote AU55 was the second highest priced FRN in January, realizing $49,200. This is comparable to a PMG AU58 sold this past August at the same number. However, this PMG note crossed the block in 2022 for $90,000.

These examples illustrate the reality that the market is not as deep for these two series as they are in other Large Size types. I highlight this as neither a positive or negative, but to make buyers aware of both the opportunities and potential pitfalls involved. When there are multiple dedicated collectors attempting to build comprehensive sets, the prices for the key notes can be strong. Otherwise, Type collectors will generally by a high-grade common Friedberg number to add to their collection. As a result, these notes—due to the vast number of varieties issued—present a chance to own a scarce and under-appreciated U.S. banknote for generally less than what it would cost if it were another type. That is often more important than value alone.