Rare Coin Collection Value – What Sets Collections Apart?

“Rare Coin Collection Value – What Sets Collections Apart?” posted by American Coins & Gold on 8/17/18

 

What Makes People Collect Rare Coins?

Believe it or not, there are many different reasons why people chose to collect rare coins. From the hobby collector who consistently is on the search for new rare coins they can get their hands on, to the person with a collection gathering dust in their closet. Some are tied to the historical significance of coins, some have memories associated with specific coins that allows them to immortalize those feelings, and others are in it for the money. Coin collecting is a massive global market with a market size of over $3 billion!

This might be crazy to hear for some people because they don’t think of coins as a means to make a profit. However when you go past the precious metal value the coins are made of and start to examine the rare coin collection value potential, you can quickly see how certain coins can make you rich. Whether you are interested in buying rare coins as an investment to make profit on later, or you just love the significance of collecting the coins themselves, understanding what goes into a coins value will prove to be helpful for you down the line.

Below we will outline what depicts the value of a rare coin collection and how you should go about selling your coins if you want to get the highest payout possible.

What Impacts Rare Coin Collection Value?

Coin Rarity / Scarcity:

This is one of the biggest factors that goes into determining the value of a coin or coin collection. A coin that is rare means it has scarcity which means demand is higher than the supply for the coin. This means people are willing to pay higher prices for those types of coins, compared to more common coins people can easily get their hands on.  There are many different factors that can make a coin scarce and have high demand, which we will outline more in the points below.

Coin Condition:

The condition the rare coin is in has a lot to do with its final market valuation. This includes the amount of wear and tear the coin has been exposed to, such as fading, scratches, dents, oxidation, and other noticeable factors. When you go to get a coin graded, they are taking to account the condition your coin is in then providing you with a grade for that coin. This grade is directly related to how much you can get if you were to sell that coin in auction. The highest grade is Mint State, which resembles a perfectly uncirculated coin with no damage and full eye appeal. The more damage and wear a coin has all go into effect to determine its overall grade.

Coin Errors:

An error occurs during the coin striking process. There are multiple different types of coin errors which include off center striking, mechanical doubling, die breaking, indent, wrong planchet, double denomination. double strike, and much more.

Coins which have errors are often worth much more because they are part of an extremely limited batch. Once the error is noticed, the striking process is fixed to eliminate it from happening on future batches. That means the coins with errors fall into some very valuable territory, especially if they are in good condition. These errors can occur for multiple different reasons such as malfunctioning equipment all the way to poor quality assurance procedures. Either way, if you have a coin error on your hands, you might be due for a pretty pay day!

Coin Historical Significance:

Lastly, but certainly not least, the historical significance of a coin can greatly impact its value. Often times you will see a rare coin collection value highly when it has a certain historical theme to it. This also gives the collector a sort of mission to get their hands on a piece of history if you will. As with many other collectibles that sell for high amounts (think Antique Road Show), items that are directly tied to historical, political, and monumental events can be worth much more than you ever thought.

Whether your coin collection journey is just beginning, or if you have already have a rare coin collection we hope this guide served as a basic refresher to determining rare coin collection value. If you would like to get a FREE No Obligation Appraisal please call, email or visit an American Coins & Gold location near you today! We also do At Home Appraisals if you are too far or unable to come into one of our 6 locations.