What Makes A Coin Valuable?

‘How To Determine Coin Value’ Posted by American Coins & Gold on June 12th, 2018

 

Top Factors That Influence A Coins Value:

Demand

Condition (Grade)

Material

Rarity

Coin Demand

Just like with other goods and services, the classic supply and demand economic model applies to coins as well. If a coin collection contains rare coins, its demand will be driven higher, mainly by the coin collecting market. While coin collecting might not seem like a big industry to some, its actually estimated to be over $3 billion. If a specific coin does not have any true rarity to it then the demand for the coin is then based on its material. This transfers the coin value to the precious metal demand of which the coin is made of.

Coin Condition

Another determining factor to a coins value is its condition, also known as its “grade”. When professional coin evaluators examine a coin they are looking for multiple different criteria which combine to a single grade for the coin. Some of these include the coloration of the coin, the vibrance / aesthetics of the metal, strike of the coin, as well as any damage marks. Coin damage is inevitable with age and use, unless properly cared for. The most common damage marks which impact a coins condition and therefore its value are:

Scratches & Dents

Discoloration of the metal

Corrosion / Carbon spots on the metal

 

Coin Material

As mentioned above, the material of the coin really only matters if you have a rare coin on your hand. If your coin doesn’t have any rarity, the the material of the coin is what truly determines its value. Often times coin dealers will melt down common gold, silver, and platinum coins for their precious metal value. 

Coin Rarity

Last but certainly not least, is the coin rarity. This is actually the most important factor when it comes to determining coin value and is the toughest to distinguish. Coins that are rare have higher demand and therefore incredibly more valuable than your average gold or silver coin. Multiple factors come into play which make a coin rare, but it often stems from:

Limited Circulation

Connection To Historical Events

Age Of The Coin

Coin Errors / Misprints

 

Think you might have a rare coin on your hands? If so, you might have just earned yourself a solid cash payout. Some of the rarest coins today sell for thousands of dollars depending on their demand and condition. 

The best way to determine if a coin you have in your collection is rare or not is to let a professional take a look. An experienced coin dealer will be able to evaluate your coin for every one of the factors listed above and provide you with an appraisal of the coin value. 

Get Your Free Appraisal Today!

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