Mar 21, 2008

Creating Wealth Through Collecting Banknote

Collecting banknote is a hobby but do you know that it also can create wealth for you if you know how to manage it well. Putting your money in bank is not a good choice anymore nowadays. The value of RM1 today is not equal to RM1 in coming 30 years. In other words, RM1 in 30 years later no longer can afford you to buy thing with RM1 today.

There are many instruments in the market nowadays that allow you to invest you money wisely rather than putting them in a safe or a bank that gives you 5% p.a. Image that if you were to put RM1 into a bank saving account in 1967 with earning interest of an average of 5% p.a. After 30 years with compounded interest rate, most likely your bank account will have a balance of RM4.32. However, if you would have to keep a piece of uncirculated (UNC) of 1967 issuance RM1 note, you would probably end up with a wealth of RM30 that equals to 12% return yearly.

An UNC 1967 RM1 Banknote worth of RM30 today

You might wonder that why and how a piece of RM1 banknote can worth 30 times after many years. In fact, this is just a typical example, there are cases where the value of a banknote can increase so drastically due to is scarcity and high demand from collectors. Bear in mind that there are many collectors around the world that are willing to offer high price for a piece of banknote that they wanted to OWN it.

1 comment:

Paper Money Collecting said...

You are so right that collecting paper money can create wealth. One thing to note though is that it is important to learn how to store the banknotes properly so they do not deteriorate and loose value. This is a great blog.