There are several reasons why collectors are willing to pay significantly more for certain coins and banknotes than their face value.
According to the currency website US First Exchange, the value of a coin or bill is determined by three factors: rarity, condition/grade, and market conditions or demand. The sum of these three variables determines whether a coin or bill is worth more or less money.
Another factor to consider is its historical significance, which can drive its value into the millions, as in the case of a rare 1794 silver dollar coin, believed to be one of the first minted by the United States Mint. A single specimen fetched $10 million.
While the 1935A Hawaii $1 Silver Certificate may not be worth a record-breaking sum, it remains one of the most distinctive and historically significant notes in US paper money history.
It was issued specifically for Hawaii following the attack on Pearl Harbor in the event that the Japanese invaded and occupied the island chain. This, combined with its relative scarcity, has contributed to its status as a highly desirable collectible.
How to recognize a 1935A Hawaii $1 Silver Certificate
The 1935A Hawaii $1 Silver Certificate is unique not only because of its history (other special issues of one-dollar bills were issued during WWII), but also because it has a large ‘HAWAII’ overprinted horizontally on the reverse and smaller ones vertically on the right and left sides of the obverse.
Furthermore, the seal and serial numbers were printed in brown/red ink, distinguishing it from the standard US $1 Silver Certificate, which used blue ink.
Despite the fact that over a million were issued during WWII, the 1935A Hawaii $1 Silver Certificate is now quite rare. Following the war, a large portion was recalled, removed from circulation, and eventually destroyed.
1935A Hawaii $1 Silver Certificates are worth anywhere between a few tens of dollars and a few hundred dollars. However, those that are in particularly good condition or have something unique about them can sell for significantly more.
One seller is asking $5,750 for this specimen, which has an error with the ‘HAWAII’ overprint. The bill’s center is tilted rather than running parallel to the top and bottom edges.
Furthermore, the Professional Coin Grading Service (PCGS) has rated the banknote on offer from Hawaiian Islands Stamp & Coin as Gem New 65PPQ.