Sunday, March 23, 2008

What kind of banknote you should collect

I have mentioned earlier in my blog that collecting banknote can create wealth to a collector if you know how to manage it well. I think a lot of people will agree with it. However, as a smart collector you should be able to identify what type of banknote you should collect in order to generate income for you.

Collectors always look for something that is extra ordinary and rare in the market. The reason is very straight forward and simple. This is because they can appreciate in value faster than any other common notes. Having say that, those notes must be in perfect condition which it retains all the original feature, be it the banknote itself or its folder or cover.

I will share with you some of the common type of banknote that a typical collector will always look for.

Replacement Note

Replacement notes are the reprinted banknotes that replace those mistake notes in the printing process. During the printing process, some notes might be imperfect, damage or have error in printing. Thus, these mistake printed notes are required to be destroyed and replaced by central bank. New notes with a special prefix or serial number or other special marking will then be issued as a replacement note. These replacement notes are rare and they have became the target of many collectors.

Replacement note with prefix ZA

Error Note

Error notes are the mistake notes that due to printing error. Error could be due to many reason such as misalignment, color deterioration, missing number and etc. Normally, prior to issuing new banknotes, central bank will check and screen through each and every note to ensure notes to be issued to public are in good order. If any mistake or imperfect printed notes are discover, they will be destroyed and replaced with replacement note.


Misalignment Error Note

Fancy Number Note

Many collectors like to collect notes with fancy number. For example note with 1111111, 2222222, 3333333 and etc . These notes only can be obtained 1 in 9999999 for a different prefix that issued by central bank. Relatively they are rare and always become collector's favorite.

Note of fancy number

Commemorative Note

Commemorative notes are normally issued by central bank to commemorate a special event such as installation of new king, Independence anniversary, sport event and etc. These notes normally issued with limited copies and most of the time they also come together with special folder and description. The value of commemorative note normally will appreciate faster than ordinary circulating note.

Friday, March 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.

Story Behind Cross Flag Post of RM5 Banknote

The 2nd Series of Malaysian Banknote (Type 1) was issued in 1982. This series of note reflects the Malaysian cultural artefacts that include tradisional ornaments and woodcarvings from various parts of Malaysia. The reverse of each of denomination depicts a prominent building or landmark in Kuala Lumpur, the capital city of Malaysia.

The reverse of a RM5 features the Istana Negara or King's Palace which is the official residence of His Majesty, the Yang di-Pertuan Agong (King) Malaysia.

The Istana Negara or King Palace of Malaysia

On a closer look at the reverse of RM5 of the Type 1 of 2nd series with signature of Tan Sri Dato' Abd Aziz bin Hj Taha and the Type 2 of 2nd series with signature of Tan Sri Dato' Jaffar Hussein, a cross flag post can be identified in front of the King Palace. It was misinterpreted by certain people that it was a religion symbol. For this reason, the Bank Negara Malaysia had modified its original design by removing the horizontal bar on the cross flag post. This modification has reflected in the later issuance of Type 2 and Type 3 notes. Ever since, this RM5 note has became one of the favorite pieces to be added into collector's album.

Cross flag post shows in front of Istana Negara shows on Type 1 and earlier Type 2 notes

RM5 note with cross flag post shows on reverse on Type 1 and earlier Type 2 notes

A modified version of RM5 without showing cross bar on flag post on later Type 2 and Type 3 notes

Thursday, March 20, 2008

Replacement Notes - 4th Series

The 4th series of replacement banknote retains the prefix of previous replacement banknote series which is ZA. This series of banknote was lately announced by Bank Negara Malaysia on 21st December 2007 as a new-design banknote of 4th series in conjuction with Malaysia 50th Anniversary of Independent.

Even though this series of banknote is yet to be commonly circulated to replace the current (3rd) series, collectors still be able this replacement note available in the market.


4th Series Replacement Note with Prefix ZA

RM5 Uncut Banknotes - 3rd Series

Bank Negara Malaysia issued uncut banknotes (3rd Series) in September 1999. Three type of uncut banknotes were issued: 3 in 1, 8 in 1 and 30 in 1. The 3 in 1 and 8 in 1 uncut banknotes were issued in a folder with description and they are limited to 20,000 copies and 5,000 copies each. In addition, the 30 in 1 uncut banknotes was nicely packed in container and only 3,000 copies were issued.

This 3rd Series of RM5 banknotes carry the theme of "Wawasan 2020" which reflects Malaysia's vision of economy development and achievement towards a fully developed country by the year 2020. The construction section has been selected as the design motif in RM5 banknote.

The observe of the 3rd Series of RM5 banknotes retains the portrait of the first Seri PAduka Yang Di-pertuan Agong. The reverse design features the construction section with landmark building such as Kuala Lumpur International Airport (KLIA), Petronas Twin Towers and geographical map bearing the landmark symbols representing Putrajaya and Cyberjaya.

RM5 3-in-1 Uncut Banknotes








RM5 8-in-1 Uncut Banknotes







RM5 30-in-1 Uncut Banknotes

Sunday, March 16, 2008

2nd Series of Malaysia Banknote (Type 1 to Type 3)

The Type 1 of second series was issued in 1982. These notes were signed by Tan Sri Dato' Abd Aziz bin Hj. Taha, the second Governor of Bank Negara Malaysia. The blind mark was introduced on the upper left corner of the notes and the serial numbers were printed horizontally.


Type 1 of 2nd Series with blind mark on left corner

The Type 2 of the second series which has incorporated new security features was issued in 1986. This series of banknote was signed Tan Sri Dato' Jaffar Hussein. It removed the blind mark on the upper left corner of the notes. The serial number was printed in red color and in vertical direction. Silver thread was introduced at a later stage.




Type 2 of 2nd Series with removal of blind mark and with vertical serial number in red

The Type 3 of the second series was issued in 1995 signature of fourth Governor, Tan Sri Dato' Ahmad Mohd Don.

Type 3 of 2nd Series with signature of Tan Sri Dato' Ahmad Mohd Don

1st Series Coins - Proof Set of 9

This 9 coin proof set was minted in limited edition by The Franklin Mint of U.S. under the authorization of Bank Negara Malaysia on 23rd December 1980. This proof set consists denominations of 1 Sen, 5 Sen, 10 Sen, 20 Sen, 50 Sen, 1 Ringgit (2 nos), 5 Ringgit and 25 Ringgit. The two 1 Ringgit, 10 Ringgit and 25 Ringgit coins were minted in solid sterling silver. They were sold almost exclusively to employees of Bank Negara Malaysia.

This proof set of Malaysian Coinage comes carefully enclosed in a special designed protective card, original gloves for handling, a note for handling and care and official certificate of authenticity. A total of 5,000 sets were issued by Bank Negara Malaysia.

Observe of Proof Coin Set of 9

Reverse of Proof Coin Set of 9

Certificate of Authenticity

Bank Negara Malaysia's 50th Anniversary Commemorative Coin Design Competition

Dear Collectors,


In conjunction with Bank Negara Malaysia to commemorate its 50th Anniversary on 26th January 2009, the bank has launched a nationwide design competition on 50th Anniversary Commemorative Coin from 10th March 2008 to 9 April 2008.

The objective of this competition is to seek a design which best reflects Bank Negara Malaysia's role in nation building.

The winning design entry will be used to mint and produce the 50th Anniversary Commemorative Coin.

The winning entry will receive a RM20,000 cash prize and consolation prizes of RM1,000 will be awarded to each of the ten (10) shortlisted entries.

The competition is open to all Malaysian citizens aged 18 and above.

For those who are interested in this competition, the entry forms can be downloaded from BNM's wedsite and/or obtained at Bank Negara Malaysia's headquarters and its branches in Penang, Kuala Terengganu, Johor Bahru, Kuching and Kota Kinabalu.

Following are the Commemorative Coin Design guidelines and requirements:-

  • Each design must depict the following:
    Obverse (Front):
    -Theme : Role of Bank Negara Malaysia in Nation Building
    Reverse (Back):
    -Bank Negara Malaysia's logo in the centre of the coin
    -The words "Ulang Tahun Ke-50 Bank Negara Malaysia" and the years "1959" and "2009" on the circumference
    -Value of coin "RM100"

  • Participants are required to provide a clear rationale and description for their design in type-written form.

  • The design must appear dignified and distinctive. Not more than three colours may be used in the design.

  • The design must be sufficiently easy to engrave.

  • The size of the design to be submitted must be between 140mm and 160mm in diameter.

  • Submission of designs can be in the form of computer-designs or drawn free-hand using colour pencil, acrylic, oil, water-colour or ink.

  • The design submitted must be of the complete set (Obverse and Reverse) and not single side.

  • Entries must be submitted only in printed form or hardcopy with measurement not exceeding A4 paper size. The print-out or hard copy designs must be mounted on a mounting board.

Organised by BANK NEGARA MALASIA

The Bank Negara Malaysia has released the result of this competition. For more information, please read the comment.

Saturday, March 15, 2008

1st Series Coins

The first series of Malaysian coins was issued by Bank Negara Malaysia on 12 June 1967 that comprised of five denominations namely 1 sen, 5 sen, 10 sen, 20 sen and 50 sen. The obverse of these coins bear the image of Parliament House and a thirteen pointed star with crescent moon as a common motif. The reverse of these coins show the denomination of their face value (1 sen, 5 sen, 10 sen, 20 sen and 50 sen) with the word 'Malaysia' above along the periphery. The year of mintage was shown below the denomination.

All regular legal tender coins and some of the non-proof commemorative coins were minted at the Bank Negara Malaysia's Mint at Shah Alam, Selangor. A number of non-proof and all proof commemorative coins were minted overseas. On 1 May 1971, the Bank Negara Malaysia issued a new coin of $1 denomination for normal circulation. The coin has an incuse-lettered edge with the inscription 'BANK NEGARA MALAYSIA' repeated twice around the periphery of the coin, instead of the normal milled edge.


1 Sen


Type : Copper or Copper-Clad Steel
Weight : 1.94 gm
Diameter : 17.7 mm


5 Sen

Type : Copper Nikel
Weight : 1.41 gm
Diameter : 16.2 mm


10 Sen

Type : Copper Nickel
Weight : 1.82 gm
Diameter : 19.4 mm


20 Sen

Type : Copper Nickel
Weight : 5.65 gm
Diameter : 23.5 mm

50 Sen

Type : Copper Nickel
Weight : 9.33 gm
Diameter : 27.7 mm

$1

Type : Copper Nickel
Weight : 17.0 gm
Diameter : 24.5 mm

Sunday, March 2, 2008

Banknotes & Coins Auction

Dear Collectors,

Mavin International is organizing its Auction No.17 on World Coins, Banknotes and Postcards Auction from 14th March 2008 to 15th March 2008 at Hotel Le Meridien Singapore. They have been organizing this auction event since 2002. For those who are scouting for valuable items to add into their collection, this auction provides you the opportunity. Please get your online catalog at Mavin International's Auction No.17.

Items listed below will be the higlights during the auction:

* Singapore Polymer $5 1st Prefix Serial No. 2AA 000001

* A group of rare Malaysian specimen banknotes* British colonial colour trial, proof and specimen banknotes

* An Uncirculated Straits Settlements 10 Cents 1920

* A high grade collection of Straits Settlements coins

* A group of French Indo-China Proofs

* Special Number Singapore Banknotes sold on behalf of the Monetary Authority of Singapore

* An many other quality world coins and banknotes

Governor of Bank Negara

There are many collectors whom collect different banknotes with different Governor's signature. It is because even though the design of the banknote could be the identical from the same series, but different Governor's signature gives different value. Obviously, there are Governors whom stand longer in position and thus his signature appears fairly common on the circulation note. On the other hand, governors whom hold position for a short period of time will not have their signature appear more commonly. This creates a "rare" situation for collectors to search and add into their collection.

This happen the same for Malaysian banknotes. There are total of six (6) Governors from the issuance of 1st Series (1967) to the present 3rd Series (present). The following are the Governors of Malaysia throughout the 1st, 2nd and 3rd Series of Malaysian Banknote.


Tun Ismail Mohd Ali (1967-1981)



Signature of Tun Ismail Mohd Ali on 1st Series


Tan Sri Dato' Abd Aziz bin Hj. Taha (1981-1984)


Signature of Tan Sri Dato' Abd Aziz bin Hj. Taha on 1st Series




Signature of Tan Sri Dato' Abd Aziz bin Hj. Taha on 2nd Series


Tan Sri Dato' Jaffar Hussein (1986 - 1995)



Signature of Tan Sri Dato' Jaffar Hussein on 2nd Series



Tan Sri Dato' Ahmad Mohd Don (1995 - 1998)



Signature of Tan Sri Dato' Ahmad Mohd Don on 2nd Series



Signature of Tan Sri Dato' Ahmad Mohd Don on 3rd Series


Tan Sri Dato' Seri Ali Abul Hassan (1999)




Signature of Tan Sri Dato' Seri Ali Abul Hassan on 3rd Series




Signature of Tan Sri Dato' Seri Ali Abul Hassan on 3rd Series


Tan Seri Dato' Sri Dr. Zeti Akhtar Aziz (2000 - present)



Signature of Tan Seri Dato' Sri Dr. Zeti Akhtar Aziz on 3rd Series

Saturday, March 1, 2008

Malaya Banknote 1940

The Board of Commissioners of Currency Malaya was established in 1938. The Board commenced to issue currency in 1939 to replace the Strait Settlement currency. All the notes issued by the Board bore the portrait of King George VI (1936-1952). These paper money were issued in denominations in Cents and Dollars.

The issuance of 1940 Malayan currency was not broadly circulated in Malay States because of the war in Europe. These notes were printed in United Kingdom. However, not all the notes were circulated. The 10 dollars note was the only note circulated back then because of a shipload of 1 and 5 dollars notes were captured by the German forces during the war.

These note are relatively rare. The design of 1940 notes similar to the 1941 and 1942 except the color used on the notes were different. The 25 cents note was not issued in 1941 but instead replaced by 20 Cents and 50 Cents.

10 Cents

Size : 105mm x 55mm
Printed by Survey Department Federated Malay States on 15th August 1940
Signature by L.S Corney, Chairman of Commissioners


25 Cents



Size : 121mm x 79mm
Printed by Survey Department Federated Malay States on 1st September 1940
Signature by L.S Corney


1 Dollar



Size : 125mm x 65mm
Colour : Green
Printed by Waterlow & Sons Limited London on 1st January 1940
Signature by L.S Corney


10 Dollars



Size : 153mm x 83mm
Colour : Purple
Printed by Waterlow & Sons Limited London on 1st January 1940
Signature by L.S Corney