Frequently Asked
Questions from Coin Collectors
Q. Hey, what is my coin worth.
A. Perhaps the most common question in all of the industry
and perhaps the most complex. There are several factors that determine the
value, value being the key word, of the coin. They are listed here not
necessarily in order:
-
Condition of the coin. By condition, we mean the
appearance of the coin. Is it in perfect shape or worn to the point that it
is nearly unidentifiable? This is known as the grade. Coins are graded on
a scale of 1-70 for coins meant for circulation. See Grading for full
descriptions.
-
Scarcity. By scarcity, we mean how rare or scare is
the coin? This is not to be confused with mintage as some coins that had
large mintages could be scare or could be scare in a certain condition. All
US coins have an actual mintage meaning of number produced. Some older
coins have an estimate due to poor record keeping or lost records in the
early days of coin production.
-
Mintage. As described above, total mintage of a coin
can also have impact on price. In most cases, a coin with a low mintage
will have a higher value than those with a higher mintage. This is of
course not always true as demand for a coin also can impact value.
-
Demand. The demand for a coin is probably the item
that creates value more than anything. As demand for a coin goes up, then
so does value. Many key or semi-key coins in excellent condition often
times, but not always, sell for more than retail listed prices
Generally speaking then, a coin is worth only what someone
else will pay for it. Many folks who think they have a valuable coin become
disenchanted when they take it to a dealer. Unless it is high in demand, many
dealers will often snub their nose at the coin(s) or will offer far less than
what the collector was expecting. Looking up the value of your coin(s) in Coin
Prices, Coins or other trade publications give collectors a false sense of the
value of their collection. These prices are often retail prices, meaning, this
is what you might expect to pay for a coin from a dealer. Remember, a dealer is
in business to make money to feed his/her kids/family. Dealers will offer far
less than what is published in these magazines.
Q. Do you by coins?
A. Yes. If you have a coin or collection for
sale, please contact me
Q. What are the best coins to own?
A. The best coins to own are those that give you
enjoyment. If you are a coin collector, you collect coins for the enjoyment
rather for the investment potential. As collectors, we all hope our collections
rise in value, but this is not always the case. Additionally, the answer to
this question from an investment perspective will change everyday with the rise
and fall of the market. Silver and Gold prices obviously have impact on demand
and price. If you are a lover of the Lincoln cent, then you should learn
everything you can on the Lincoln cent and concentrate on that series or a few
others.
Q. Can I make money collecting coins?
A. Yes and no. We are currently in a bull market for
coins but that could change any time. Also, remember, when you buy coins at or
near retail, you can expect that the coin(s) will have to appreciate to make a
profit as a dealer will not generally give you retail value of a coin
Q. What is a good strategy for collection coins?
A. Again, this is entirely up to you. Many folks
concentrate only on proofs or mint sets while others concentrate on a specific
series or two. Another option is to build what is called a “type Set”. A type
set is one coin of every type coin and denomination produced by US mints.
Certainly a challenging task you upgrade to finer coins.
Coin Collecting News
|
