Are $500 bills rare? Valuable? Even real? If you‘re like most Americans, you‘ve probably never even seen one in person. These strange high-denomination notes occupy an almost mythical place in our culture, thanks to their scarcity and outsized buying power.
But what‘s the real story behind these elusive banknotes – and more importantly, what are they actually worth? Join us as we peel back the curtain on the $500 bill‘s fascinating history and value as a prized collectible.
A Short History of the $500 Bill
While today a $500 bill seems like Monopoly money, these large notes actually played a crucial role in the American economy for over 200 years. The first known $500 bills were issued by the cash-strapped Province of North Carolina way back in 1780 to help fund the Revolutionary War effort.^1
Over the next century, the U.S. government and various states released high-denomination notes like the $500 bill to finance other major expenditures and wars:
| Year Issued | Issuing Authority | Reason |
|---|---|---|
| 1780 | North Carolina | Revolutionary War |
| 1812-1815 | Various States | War of 1812 |
| 1861-1865 | U.S. Government, Confederacy | Civil War |
| 1918 | Federal Reserve | World War I |
| 1928, 1934 | Federal Reserve | General Circulation |
However, these early high-denomination notes weren‘t really meant for the average citizen. As large transactions between banks, governments, and wealthy individuals increased in the 19th century, $500 bills facilitated moving money more efficiently. A bank transferring $50,000 could use one hundred $500 notes rather than five thousand $10 bills – much easier to count and transport!
The $500 Bill‘s Decline and Fall
As the 20th century progressed, the Federal Reserve continued issuing new series of $500 bills for general circulation – the last being the 1934 series featuring William McKinley.^2 But with the rise of check clearing services and wire transfers, the need for large physical banknotes quickly declined.
There was also growing concern that high-value bills enabled criminal activity by allowing drug dealers, mobsters, and tax evaders to inconspicuously move large sums of cash.^3 Because of this, the Treasury Department officially discontinued $500 notes in 1969 – ironically making them even hotter collector‘s items.
How Rare Are $500 Bills?
The answer to this common question is nuanced. Of the Series 1934 $500 Federal Reserve Notes (the last widely circulated issue), over 75% of the original print run of 1.1 million notes is estimated to still exist – mostly in private collections.^4 That‘s a surprisingly large survival rate compared to many older bills.
However, earlier series of $500 notes from before 1928 are significantly harder to find, with only dozens to a few hundred known specimens of certain varieties:
| Series | Known Surviving Examples | Most Recent Sale Price |
|---|---|---|
| 1869 $500 "Rainbow" Note | 3 | $1,410,000 (2014) |
| 1882 $500 Gold Certificate | ~200 | $2,580,000 (2014) |
| 1922 $500 Gold Certificate | ~60 | $1,290,000 (2013) |
So while you‘re much more likely to encounter a 1934 series note in the wild, pre-1900 varieties in particular are prohibitively rare. The legendary 1869 "Rainbow" $500 is considered the holy grail of paper money collecting, with only 3 known examples in existence. One graded Extremely Fine 45 by PCGS Currency sold for a staggering $1,410,000 in 2014.^5
What Makes a $500 Bill Valuable?
With such a wide range of scarcity and eye-popping auction results, you may be wondering what separates a "meh" $500 bill from a six or seven-figure trophy note. According to top currency dealers and auction houses, these are the primary factors that determine a $500 bill‘s collectible value:^6
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Year and Series – As a rule of thumb, older is better when it comes to paper money. Some series of $500 bills (like 1878 triple-signature notes) had print runs of less than 100,000 – a recipe for scarcity.
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Condition – Because paper is so fragile, finding any century-old bill in pristine shape is extremely challenging. Uncirculated notes with original embossing, color, and zero folds or blemishes routinely sell for 10-100x more than circulated examples of the same type.
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Seal Type and Color – Certain series of $500 notes (like 1882 and 1922 gold certificates) featured limited print runs with brown, orange, or red Treasury seals. Since most of these special seals were used for only a tiny fraction of notes printed, they can drive values through the roof.
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Serial Numbers – Notes with "fancy" serial numbers like 00000001, 99999999 or patterns like 12121212 are coveted by collectors and often bring substantial premiums over regular numbers.
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Misprints and Errors – Some of the most valuable $500 bills feature misprints like foldovers, ink smears, overprint mistakes, and other unintended irregularities. Because quality control was so high, error notes are extremely rare and in high demand.
Of course, the most desirable (and pricey) $500 bills exhibit a combination of these factors – like an uncirculated 1882 gold certificate with a unique brown seal and single digit serial number. But even a well-worn 1934 note still routinely brings 1.5-2x over face value thanks to its relative scarcity and the intrinsic appeal of the $500 denomination.
Most Valuable (and Attainable) $500 Bills
Alright, enough with the history lesson – let‘s get to the good stuff. Here are the most popular (and valuable) $500 bill series that collectors clamor for:
1. 1918 $500 Federal Reserve Note
Featuring a striking portrait of Supreme Court Chief Justice John Marshall, the iconic 1918 $500 is known as the "Chief Note" among collectors. It‘s prized for its intricate engraving and bold green color scheme. According to dealer Rick Melamed of Rick‘s U.S. Currency, roughly 800-900 examples are known in all grades combined.^7
At a 2019 Heritage Auctions sale, a 1918 $500 graded Gem Uncirculated 66 PPQ by PCGS Currency realized $180,000 – one of the highest prices ever paid for this type.^8 Even a lightly circulated Very Fine note routinely brings $3,000-5,000 in today‘s competitive market.
2. 1928 $500 Gold Certificate
1928 was the swan song for $500 gold certificates – and what a final act it was! While over 400,000 Series 1928 notes were originally printed,^9 a mass redemption during the Great Depression means only about 100 survivors are known today in all grades.[^10]
The design is understated yet iconic, with William McKinley‘s stoic portrait dominating the face while the reverse features an austere green background with denominational markings. In January 2021, an absolutely stunning 1928 $500 gold certificate graded Gem Uncirculated 66 EPQ by PMG sold for an jaw-dropping $156,000 at Heritage Auctions.^11
3. 1934 $500 Federal Reserve Note
The 1934 series $500 is the closest thing to a "common" high-denomination note. But that doesn‘t mean it‘s a slouch in the value department! Since nearly a million were printed and a high percentage survived, 1934 $500s are the most readily available large size type note for collectors on a budget.
Very Good to Fine examples with moderate circulation can be found for $800-1,200 over face value – still a significant premium for a 20th century note.^12 Meanwhile, truly uncirculated pieces graded 63 or higher by PCGS or PMG routinely bring $10,000 and up due to their unimprovable state of preservation.^13
Tips for Valuing Your $500 Bill
Think you might have a valuable $500 bill on your hands? Here‘s a quick checklist to help determine its worth:
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Check the year and issuing authority. Pre-1900 bills are best, but even 1918 and 1928 gold certificates can be worth big bucks in the right condition. Generally, older = rarer.
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Compare the seal type and serial number to reference images. Unusual colors or sequences often mean you have a scarce variety worth many times the "normal" value.
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Examine the note‘s condition carefully. Is the paper crisp and bright or faded and worn? Uncirculated notes with original embossing and zero folds or blemishes are the gold standard.
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Use a currency pricing guide or online auction archives. Compare your note‘s year, series, and condition to recent dealer listings and realized sale prices to get a ballpark estimate.
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Consider professional grading. For peace of mind and maximum value, having your note assessed, authenticated and encapsulated by PCGS Currency or PMG is always a smart move. Even a small difference in grade can mean thousands of dollars!
And remember, unless you find a 1934 series note in very rough shape, virtually all $500 bills are worth substantially more than face value due to their scarcity and collectibility. To illustrate this point, here‘s a handy reference chart showing representative retail values for the most widely collected $500 bill series and grades:
| Type | Good (G-4) | Very Fine (VF-20) | Uncirculated (MS-63) |
|---|---|---|---|
| 1918 $500 Federal Reserve Note | $1,500 | $3,000 | $30,000 |
| 1928 $500 Gold Certificate | – | $5,000 | $75,000 |
| 1934 $500 Federal Reserve Note | $1,000 | $1,250 | $10,000 |
Investing in $500 Bills
With even the most common $500 bills trading for serious multiples of face value, you may be wondering if these outsized notes are smart investments. As with most collectibles, the answer depends on your risk tolerance, time horizon, and ability to buy the right notes at the right price.
Over the long term, rare currency has proven to be an excellent store of value and hedge against inflation. For example, market analysis by Gainesville Coins shows that high-grade, pre-1928 series $500 bills appreciated by an average of 5-7% annually between 2000 and 2020 – far outpacing increases in the Consumer Price Index.^14
Of course, past performance is no guarantee of future results. The rare currency market can be illiquid and volatile, with long dry spells punctuated by sudden price spikes. As the investor base for paper money ages, it remains to be seen whether younger collectors will have the same appetite for five-figure banknotes.
If you‘re keen on adding some high-denomination notes to your portfolio, consider working with a reputable dealer who can help you identify undervalued pieces with strong appreciation potential. Look for $500 bills with eye appeal, superior condition, and unusual features like low serial numbers or scarce seal/signature combos.
Above all, buy the best note you can afford – and don‘t be afraid to hold out for that special piece that really sings. With patience and a discerning eye, you just might be able to turn America‘s most misunderstood banknote into a high-grade investment for the ages!
Final Thoughts
From financing the Revolutionary War to fueling modern collectors‘ dreams, the mighty $500 bill has played an outsized role in American history. While these misunderstood banknotes may be long gone from circulation, their legacy endures through the passionate community of numismatists who prize them as works of art, artifacts of the past, and stores of value for the future.
Far from being mere novelties, virtually all $500 bills command substantial premiums over face value in today‘s red-hot paper money market. With the right knowledge and a keen eye for quality, even the humblest collector can stake their claim to a piece of American monetary history – and maybe make some cold, hard cash in the process.
So the next time someone asks you if $500 bills are rare or valuable, you‘ll know exactly what to tell them. Armed with the information and insights in this guide, you‘re well on your way to becoming a high-denomination expert in your own right. Just be sure to share the wealth (of knowledge) with your fellow collectors along the way!
[^10]: Bowers, Q. David; Sundman, David (2006). 100 Greatest American Currency Notes