Why Do People Buy Banknotes More Expensive Than Their Face Value

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Why Do People Buy Banknotes More Expensive Than Their Face Value
Why Do People Buy Banknotes More Expensive Than Their Face Value

Video: Why Do People Buy Banknotes More Expensive Than Their Face Value

Video: Why Do People Buy Banknotes More Expensive Than Their Face Value
Video: 20+ Banknotes Worth Way More than Face Value - Errors, Rare and Fancy Serial Numbers 2024, April
Anonim

Sometimes in life there are cases when people buy themselves banknotes, the cost of which is much more than their face value. This happens for various reasons, one of which is numismatics.

Why do people buy banknotes more expensive than their face value
Why do people buy banknotes more expensive than their face value

Money and its real value

People are used to paper cash. By the way, banknotes are made not of paper, but of more durable flax. In fact, money can be made of any material; it is simply the equivalent of mutual contractual trust in a certain thing. By itself, for example, a $ 100 banknote costs practically nothing, but if you pay with it, the seller of the goods is sure that he will be able to purchase the thing or product he needs in the same way. Money is subject to inflation, its value relative to the commodity basket is gradually falling, this is a consequence of normal human greed. With the loss of confidence in a certain currency, a hyperinflationary process sets in, a reverse process of human emotions begins, a rapidly growing panic. In a normal economy, the state prints a strictly limited amount of money equal to the annual GDP plus the number of banknotes that have fallen into disrepair.

Money, like any product, any artifact produced by mankind, has a certain number of defective batches upon release.

Reasons for buying expensive banknotes

Sometimes you will notice that buying a two dollar bill costs more than buying a hundred dollar bill. Collecting money - numismatics - is an extremely exciting hobby. Collectors sometimes chase all over the world for any one coin or bill. The point is that money, being a mass-produced product, has a strictly limited value. However, if a marriage was allowed in the production of money, or the money was issued by the state for a certain anniversary holiday or in honor of a particular person, or for other reasons, banknotes, banknotes or coins become masterpieces. Usually the number of such masterpiece coins or banknotes is strictly limited, often even measured in tens or units of copies. Here are just a couple of examples: collectors leave a lot of money at the auction, the coins of tsarist Russia reach three thousand dollars in price. The largest and heaviest metal coin in the world, officially listed in the Guinness Book of Records, is 1 million Canadian dollars. The coin weighs almost 100 kilograms of the purest 999 standard gold and exists in a single copy.

Coins, banknotes that are defective on the obverse, reverse or edge have a much greater value than the denomination indicated on them.

It is known that for the upcoming Olympics in Sochi, new beautiful notes were issued, in denominations of 100 and 200 rubles, and a 25-ruble coin. The purchase of new money is much more expensive than its further turnover.

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