Old and new coin collectors alike should be aware of the different factors that affect the value of their coins. Whether you’re doing it as a hobby or for long-term investment, it pays to know what to expect out of your collection. After all, coin collecting does come with a price, especially if you plan on amassing rare and valuable coins.
Factors Affecting Your Coins’ Value
Determining the value of collectible coins is quite a complex process, especially if you’re just starting. Sometimes, older coins don’t always come with a higher value or price, like what this site would tell you. If you wish to understand how this stuff works, you need to learn more about the several essential factors that could impact the value of your collectibles.
Some of these factors to note are:
The coin’s grade or condition is a factor that affects its value. In the world of coin collecting, the condition of each piece is determined by its grade, and the grade will then determine its value. It goes without saying that both grade and condition are essential in assessing the value of your collection.
If you have two identical coins, and the other one is blemished, that piece would be valued lower than the other one that has a perfect mint grade. The grade can be determined by using several criteria such as luster, color, strike, preservation, and attractiveness of the coin. There are third-party agencies or graders that are more capable of grading collectible coins should you want your collection to be graded or determined according to condition.
Coins are just like any other goods in the market—the law of supply and demand always applies. This means that rare coins will always be more valuable than those that you can easily find or buy. This is usually the case for old coins that are hard to get, and as a result, everybody wants to have them.
If you plan on starting your coin collection with only the rarest items, you can look for pieces that are no longer being circulated, as they’re usually the centerpiece of any coin collection. This works the same way with coins that have design mistakes on them.
Mint errors usually cause a coin to be more valuable, just like the 1970 Washington Quarter that seems like a regular penny at first glance, but upon closer look through a magnifying glass, you’ll find the mint error on it. It’s been found out that it was struck against a 1941 Canadian quarter, which gave the coin a faint imprint of 1941, as well as King George VI’s bust outline, just beneath the imprint of George Washington.
There’s one thing to note about coins’ rarity though. Most of the time, the coin’s age doesn’t determine its rarity. An example would be thousand-year-old Chinese coins that usually sell for about ten dollars, as there are many of them available. On the other hand, the Liberty Head Nickel coin from 1913 has a market value of more than a million dollars because there are only five pieces of this coin in existence.
One unusual factor that affects the value of coins is their historical significance. This typically happens when a rather worthless coin is traced back to a great event in history or was owned by someone popular or influential, like a renowned ruler in the past. Ancient coins aren’t always valuable, but if it’s one of a kind due to historical significance, that means it has relatively high merit. The more unique history that a coin has, the higher value it tends to have.
The type of metal used in making the coin is also another factor to consider when determining the value of your collectibles. Naturally, if it’s made from precious metals such as silver or gold, the value can also change intrinsically. To compare, coins that have a higher bullion value of copper and tin will be valued less unless they have a distinctive feature that could change that, such as its history.
Additionally, the bullion or melt value of your collection is also influenced by the changing values and prices of silver and gold in the market. You can expect them to rise or fall, depending on the current price of these precious metals. Even damaged coins can still be sold if they’re made from precious metals, in the same sense that old or broken jewelry can also be an investment in the long run.
Your coins’ value can also change, depending on the tastes and trends in the market. This is heavily impacted by marketing campaigns run by coin dealers when they’re trying to popularize their items. As a result, collectors may be more obsessed with coins that are being promoted or popularized, depending on the mintage and coin grade.
You can expect the demand to rise in such cases. Although if you’re collecting coins as an investment, it might be wiser to think again if you should jump into the bandwagon or not. The reason behind that is: Those popularized pieces may eventually fall out of favor, depending on how the trend changes again.
If you’re researching on the value of collectible coins not for the resale purpose but because you want to find out which coins will be more affordable upon acquiring them, one thing to note is the stock availability of the dealer. Different dealers have their own inventories and stock at hand, so it’s best to ask around before buying.
Get different estimates from several dealers to have better options to choose from. For example, if a dealer has several pieces of a particular coin, the price will more likely be lower as the dealer would naturally want to reduce its inventory. On the flip side, if the coins are less available, the price tends to go a little higher.
It’s always better to be in the know whenever you decide on taking on a new hobby or investment. The good thing about collecting coins is that you get to feel the pride and sense of accomplishment each time you acquire valuable and rare pieces, while also knowing that you can someday make money out of it should you decide to turn it into a business. It’s almost a win-win situation, especially if you get better at determining a coin’s value.
So, next time you look for new coins to add to your collection, take note of essential factors that affect their value, such as the rarity, coin grade and condition, bullion or melt value, market trends, and the dealer stock.