Rare £100 banknote expected to realise owner $350,000

With paltry interest rates available to savers parking their cash with mainstream banks these days, there must be alternative investments that generate a more generous return.

Here's one idea. This Commonwealth of Australia £100 note from 1914 is worth rather more than the day it came off the presses in 1914. There's two things in its favour - apart from the pretty images of the Upper Yarra and Leura waterfalls on the reverse.

Charlotte Noble holds a rare £100 banknote issued in 1914. Credit: Brook Mitchell

It is in uncirculated condition and is an example of the only known issued £100 note. Also, it hadn't been redeemed at the bank when the note was withdrawn from circulation. But why would you want the £100 when it is expected to realise $350,000 when it goes under the hammer at auction on Thursday August 1.

The note is part of a collection of rare banknotes being auctioned by Noble Numismatics at the State Library. They are owned by Anne Wilson whose husband John Wilson was a dedicated notaphilist. His coin collection was auctioned in 2008 shortly after his death but his widow has now decided to give other collectors the chance to acquire the banknotes.

A rare £100 note, issued in 1914, on display at Noble Numismatics.Credit: Brook Mitchell

In 1958 Mr Wilson, then 22, with his brother, Bill, purchased the Taxi Centre Pty Ltd at the rear of 306 Canterbury Road, Canterbury, where "all manner of repairs, petrol sales and car washing were conducted".

He started putting aside coins and notes that looked different from the change paid over by the taxi drivers. During 1979-90, when the price of silver had increased significantly, he sold the majority and started collecting one example of each coin and banknote in the highest quality available.

He would purchase the best of the best at auction to fill in the gaps in his collection. He obtained the £100 note at auction, also through Noble Numismatics, from a collector for $42,000 in 1987.

The waterfall images on the reverse of the banknote.Credit: Brook Mitchell

Jim Noble, owner of the auction house, said the example was the only one known in private hands that has not been cancelled.

"It's a very unique note and anyone who wants a complete collection of Australian notes has to have this note," he said. "It was originally discovered in an attic in a deed box in Tasmania. A family involved with the original scenes on the back of the £20 note put five brand new £20 notes plus this £100 note [in the box] which was a fortune in those days.

"Now the family has come forward to sell the collection which is 80 lots of high grade Commonwealth notes and the estimate is around $1.25 million but this is the star item. I regard this note as one of the world's rarest."

Anne Wilson said the value of banknotes had gone down since her husband was alive. "We are very happy with the estimate. We are lucky that John had the foresight to make the collection. In some ways I will be sad to see it go but in other ways it will be a bit of a relief," she said.

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  A sheet of 120 1d red kangaroo stamps, Australia's first stamp.Credit: Brook Mitchell

  The auction also includes nine sheets each comprising 120 examples of Australia's first stamp - the 1d red kangaroo. Each sheet is expected to realise at least $1200.