The Value of Circulated Dinar vs. Uncirculated Dinar Explained January 03 2015
Though most of the Dinar we sell is in uncirculated condition we do occasionally run specials on circulated Dinar. We are frequently asked what is the value of circulated Dinar versus uncirculated Dinar? Is uncirculated Dinar worth more? The answer to that question is yes and no.
First let's explain the difference. Uncirculated Dinar is Dinar which has never been in circulation, it hasn't been used at stores or markets and it is in pristine new mint condition. The notes are crisp and have no bends, no folds, no pen marks or other imperfections.
Circulated Dinar on the other hand is Dinar which may have been used in the streets and markets in Iraq. These bills may look like bills you have in your wallet which may have bends, folds, soft corners or soft edges, pen or pencil marks, etc. Circulated Dinar can also be Dinar which has never been used for commerce but has been bent, folded, written on or is no longer in pristine mint condition.
So what is the difference in value between these two types of Dinar? To a bank Dinar is Dinar the same way a Dollar is a Dollar. If you go to do a bank deposit at your local bank they aren't going to give you any more money for a crisp $100 bill than they would for a wrinkled and written on $100 bill. Money is money. In that sense circulated Dinar is worth no less than uncirculated Dinar. As long as the circulated notes are in passable condition ie. not ripped into pieces, no excessive writing, etc the notes will be accepted and bought in by a bank who deals with Dinar.
When selling your Dinar to a Dinar seller or dealer however you may be paid a bit more for your Dinar if they are in new uncirculated condition. You may receive anywhere from $20 to as much as $100 more for notes which are uncirculated. That said you aren't really gaining anything since you probably also paid a premium price to buy uncirculated Dinar in the first place so, though you get more when you sell it, you also paid more for it upfront so you don't really come out ahead.
So, though uncirculated Dinar may fetch a slightly higher price with a delaer, at a bank, or in the grand scheme of things uncirculated Dinar is worth no more than circulated Dinar. That beckons the question why is uncirculated Dinar sold for more? Typically because it costs sellers more. Typically uncirculated Dinar is purchased from brokers who buy the notes at auction from the Central Bank of Iraq. Circulated notes on the other hand are often bought in by dealers from individuals at a lower cost. Dealers then pass along those savings to buyers.
So which should you buy? Many people prefer uncirculated notes. They like that the notes are crisp and new. They appreciate the beauty of these intersting notes and the nuismatic qualities. Others however want to get the most bang for their buck and if they can get an extra 100,000 Dinar or so by purchasing circulated instead of uncirculated they will opt for that. It's all personal preference.