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What Are Factors That Affect The Value Of
Coins?
When one is just starting in coin collecting, often the first
question is: “What is the value of the coin?: and the answer is
that the coin will cost as much as you are willing to pay for it
and the amount can vary considerably. For instance, a coin
dealer’s offer can be much less than a coin collector that
certainly wants your coin badly to add in his collection.
The following are factors that can influence the true value of a
coin.
1. Grade or condition of the coin. Your coin will be worth or
valued more when it is in good condition. When in a perfect or
unblemished mint condition, an “uncirculated” coin will be worth
many times more than a similar coin that has been in
circulation.
2. The rarity of a coin is the principal basis for a coins
value. Generally, the rarer that a coin is found to be, the
higher it is priced. Do keep in mind that rarity has very little
influence on the coins age. Chinese coins are a thousand years
old normally sell for about ten dollars since there are so many
of them; while a “1913 Liberty Head Nickel” can sell for up to
or over a million dollars because only five specimens are known
to be in existence.
3. Bullion value. A coin's precious metal content can determine
its value. A platinum, silver or gold coin will not, in general
sell for less than the coins value when melted.
4. Demand. There are coins that are greatly in demand; sought
after by many collectors, and if that a particular coin is in
great demand the price will be even higher. Even comparatively
plentiful coins can mandate higher value when they are popular
with coin collectors.
For instance, “1916 D dimes” are much more abundant than the
“1798 dimes” yet in spite of this, “1916 D dimes” sell for so
much more because there are many more individuals collecting
20th century dimes than 1700 dimes.
Here’s how you can determine the approximate value of your coin:
1. Properly, accurately, and correctly recognize and classify
your coin, and know the to place value on that coin. You can do
this successfully by examining your coin in a catalogue or
online with the “coin price guide”; this will give you an idea
of the going rate and price of your particular coin and you can
determine the approximate value of your coin.
Everyday coin values are changing; so you need to use a “coin
price guide” that is updated on a daily basis to obtain the
current coin value. Look at online sites that offer step by step
guidance on how to recognize your coin the proper way.
2. Grade your coin based on your thorough observation and
examination of its current condition.
3. Consult coin catalogues for a list of retail prices in or
estimates of your coins retail value. “A Guide Book of United
States Coins”, popularly known as "The Red Book" to coin dealers
and collectors, provides information on retail coin prices for
US coins and is available in libraries, coin shops and
bookstores. “The Standard Catalog of World Coins” (in volumes)
is a guide commonly used by coin dealers and collectors as well,
to provide information on world coins and is available in many
public libraries.
You can also check current coin prices by basing it on the
actual dealer coin price found in magazines and newspapers or
online auctions such as Yahoo, Coin World, eBay or Teletrade.
Always keep in mind that you are not collecting coins primarily
for money; you collect for enjoyment and self gratification, and
profit is to be last consideration. The plain fact that a
certain coin does not have a large monetary value, does not
necessarily suggest that it is no longer interesting or
fascinating or that it must not be included in your collection.
Each coin will have a certain interest in itself, regardless of
the condition that it is in and regardless of its monetary
value. There will always be a certain characteristic that will
draw you to that particular coin; so when it does, then you
should have it in your collection. Have fun!