Coin lovers know that collecting paper currency can also be enjoyable and rewarding. Currency is more fragile than metal coins are, of course, but they also preserve history. A period of time in American history that seems never to fully fade in the American imagination is the Civil War. During these four years American money changed because of the disruptions caused by the war. Some of this money is valuable, even very valuable. How much is Confederate currency worth?

The Story of Confederate Money

In 1861, when eleven southern states seceded from the Union, the Civil War began. The Confederacy was immediately confronted with several challenges. Its people were still trading in the coin of the enemy now invading them, and wars are very expensive. The economy of the South was agrarian. It had neither the infrastructure nor the manufacturing capacity of the North, and it still had to purchase military equipment and pay its bills. The Confederacy decided to print paper money as a fundraising strategy. 

“Buy the best you can afford” is a sound strategy for collectors of nearly any rarity, but is particularly important with US coins, ancient coins and US currency.   Also, as simple as it sounds, never forget that rarity is of critical importance to long-term value.

Since 2008, the coin market has done well compared to other financial markets.   However, the increase in value of common coins has been driven almost entirely by the increase in gold and silver values.   Common copper and nickel coins have languished or decreased in value while rare coins of high quality have skyrocketed in value.