1934 $500 Bill
Along with some coins, I purchased this $500 bill from a couple a few weeks back. I think that the most interesting thing about it is the history and comparing the valuation of $500 in 1934 compared to $500 in 2017.
The first $500 bills were printed during the civil war at a time when the average monthly salary of a soldier was less than $20. If they stumbled across one that would be like finding two years worth of their salary!
The 1934 $500 bill above was printed during the great depression years. If you factor in inflation, $500 in 1934 is worth over 18x that amount in spending power today. Back in 1934, you could have bought a new car with this $500 bill!
$500 Bill Value
When it comes to value, the bill in the photos is not one of the most valuable ones out there. This was a common variety, the sides are frayed, it has been folded, and there is ink on the obverse. Overall, this bill can only be considered to be in Very Good condition.
The most valuable $500 bills have a “star” next to the serial numbers. Typically, if you find a $500 with a star, it is worth at least $1,000+. The most valuable star notes were minted in 1928 and those easily go for over $10,000.
Interestingly, those that collect paper money pay close attention to the serial number on the bills. The lower the serial number the better. Also, any interesting serial numbers such as those with a long series of repeating numbers (i.e. 111111111) or “cool” serial numbers such as “1231231234” always go for a premium.
If you are looking for a $500 bill today, you will not be able to find one at the bank. For the most part they were removed from circulation in 1969. The easiest way to obtain a $500 bill today is from a collector or dealer but you should expect to pay a premium over the face value. The $500 bill in the photos is not worth too much more than face value. In excellent, uncirculated condition, this bill would probably demand $2,000 or so.
A little side story… the couple that I bought this from did take it to the bank to see if it was at least worth face value. Since it is a Federal Reserve Note, it still retains its full face value. Luckily, the teller told them that it would be worth more to a collector and that is what got them to contact me. If, by chance, they would have deposited the $500 bill, it would have been sent back to the Federal Reserve and destroyed (unless the teller would have been so kind and notified a collector to come in and purchase it!)