A rare American banknote found in Wales will be going up for auction.

This unique $500 note from 1934, with former president William McKinley on it, is extremely rare.

Printed 90 years ago, this exceptional item is part of a collection of rare USA banknotes discovered by Hansons Auctioneers.

The collection is set to go under the hammer on June 26, with a guide price of £800-£1,000 for the $500 bill.

William Hayward, the coin and banknote valuer at Hansons stated: "This $500 note is scarce for a number reasons, not least because having a $500 note in your pocket in 1934 would have been extremely unusual.

"Converted into today's dollar value, back then it would have been like having $11,619.17 - in one note - in your wallet. Nearly a century ago, notes like this were sometimes used for making large purchases such as buying land or a house."

Mr Hayward explains the rarity of this banknote, saying: "It’s also unusual because it hasn't been redeemed.

"The United States no longer issues bills in larger denominations like $500, $1,000, $5,000, and $10,000 bills but some may still be in circulation.

"The $500 was officially discontinued by the UK Congress in 1969 and the Bureau of Engraving and Printing has not printed one since 1945."

He also identified the historical significance, saying: "The most common $500 bill features William McKinley, as this note does. McKinley was the 25th president of the United States.

"Over 900,000 of these bills were printed.

"However, this example will particularly appeal to collectors as it was among 28,800 issued by the Cleveland branch of the Federal Bank.

"That’s a small issue by American standards."

The note is part of a collection of more than 100 American banknotes that have been passed down through a family in Wales.

The entire collection could amount to more than £6,000 at auction.

Mr Hayward noted: "It is a truly exceptional collection.

"I’d urge anyone who comes across any old coins and banknotes gathering dust at home to gain a valuation.

"Money is a buoyant collectors’ market thanks to its historical value."

The American banknotes collection, which includes other rarities dating back to the 18th and 19th centuries, will be sold in Hansons Auctioneers’ June 26 Coins and Banknotes Auction at its Derbyshire saleroom.