Factors That Influence
the Value of Collectible Coins
If you are interested
in collecting coins, it's important to be able to have a rough idea
of how much coins are worth. Knowing how coin values are determined
will enable you to find good deals, and ensure that you don't get
cheated into paying too much money for a coin with a low worth.
Supply Influences Coin Values One major factor in determining
coin values is the law of supply and demand. If there are many coins
of a particular type available, that coin will not be worth much.
On the other hand, if only a very few coins of that type are produced,
the coin values will rise. This is why a completely normal-looking
copper penny minted in 1943 is worth about $200,000, whereas a 2,000
year old Roman coin may be worth less than $100 - because thousands
upon thousands of Roman coins were minted, but only 40 pennies produced
during war-time 1943 were made out of copper.
Demand's Effect on Coin Values Even among coins with a similar
number of copies in existence, some have a higher worth than others.
This is because some coins are in higher demand, driving up the
coin values. Coins may become popular because they are particularly
lovely to look at, because they are part of a topical set that is
often chosen by collectors, or because they have a certain historical
Precious Metals and Coin
Some coins are made
out of precious materials like gold bullion or platinum. These coin
values are less volatile because the worth is guaranteed in part
by the material. A gold bullion coin, for example, is usually worth
more than its melted weight, but it is never going to be worth less.
Coin Values are
tempered by Grade or Classification The final major factor in
determining coin values is the grade or classification of the coin.
The more wear and tear that a coin has undergone, the less value
it is going to have. This is why un-circulated coins are usually
more valuable than coins that have been passed from hand to hand.
Un-circulated coins have always been kept in the very best of conditions,
making their value much higher. A coin in flawless condition may
be worth hundreds of times more than a low-grade version of the
exact same coin.
Now that you understand the basic factors that influence coin values,
you have a better grasp of which coins may have real value and which
will be worthless. In order to get a ballpark estimate of the value
of any coins you might have, you will first need to determine its
grade or classification. You can do this by comparing your coin's
condition to a published list of guidelines. Then look up the value
of a coin in that condition in a book such as "The Standard
Catalog of World Coins," which should be available in most
public libraries. If you need to know the exact amount that your
coin is worth, you should take it to a coin dealer and let him or
her evaluate it for you.
Navdeep Kaur, For more free tips visit www.coachingonnet.com