|
Coin Value
What Determines a
Coin's Value?
Many collectors have come across a
particular coin from time to time and wondered whether they had something of
great value in their possession. This feature describes the main factors
influencing a coin's value and provides some guidance in obtaining an estimate
of such value. Remember, however, that the mere fact that a coin does not have
significant monetary value does not mean that it is not interesting or that it
should not form part of your collection.
Factors Influencing
Value
The value of a particular coin is
influenced or determined primarily by the following four factors:
-
Scarcity or rarity is a major
determinant of value. As a general matter, the rarer a coin the more it is
worth. Note that rarity has little to do with the age of a coin. Many one
thousand year old Chinese coins often sell for no more than a few dollars
because there are a lot of them around, whereas a 1913 Liberty Head Nickel
may sell for over $1,000,000 because there are only five known specimens in
existence.
-
The condition or grade of the coin
will influence its value. The better the condition a coin is in, the higher
will be its assigned grade and the more it will be worth. An uncirculated
coin that is in flawless mint state might be worth hundreds times more than
the same coin in good condition but which has been circulated.
-
Many coins have a bullion value
determined by the value of the precious metals it contains. A gold, silver
or platinum coin does not generally sell for much less than its melt
value.
-
The demand for the particular coin,
or how many collectors want it, will also greatly influence coin values.
Some coins that are relatively plentiful may command higher prices than
scarcer coins because the former are more popular with collectors. For
example, there are over 400,000 1916 D dimes in existence as compared to
only about 30,000 1798 dimes. However, even though the 1798 dime is much
rarer than its 1916D counterpart, the 1916D coin sells for significantly
more. This is because many more people collect early 20th century mercury
dimes than dimes from the 1700's.
Determining a Coin's
Approximate Value
-
Accurately and properly identify the
coin. You can obtain guidance on how to do this by using this article How
to Identify a Coin
-
Grade the coin based on your careful
observation of its condition. This can be done by referring to this article Determining
the Grade of a Coin.
-
Look the coin up in a coin catalog
to find listed retail selling prices or estimated retail values for your
coin. For United States coins, use A Guide Book of United States Coins by
R.S. Yeoman, commonly called "The Red Book" by collectors and
dealers. It provides retail prices for United States coins. It is available
in many public libraries and in major bookstores and coin shops. For World
coins, the most widely used guide is a series of volumes called The Standard
Catalog of World Coins by Krause and Mishler. These volumes are also
available in many public libraries.
-
For more current prices, based on
what dealers are actually selling the particular coin for, you should check
coin newspapers and magazines or auction sites such as Coin World, Coin
Prices or Teletrade. These sites provide price guides for many United States
coins and some World coins.
How to Identify an
Unknown Coin
There are a number of ways to help one
identify an unknown coin and the following sets out some steps to help you do
so.
Difficulty
Level: Easy
Time
Required: Varies
Here's How:
-
Note the country of issuance of the
coin. This may be in writing or by way of the country's flag or other
emblem.
-
Note the year of issuance of the
coin if you can read it.
-
Note any pictures or inscriptions on
both sides of the coin.
-
Try to determine the primary metal
composition of the coin - copper, silver, zinc, etc.
-
Determine the approximate diameter
of the coin.
-
Note whether the coin has any ridges
on its edge.
-
Note whether the coin has any
unusual qualities such as a hole in the middle or a ring of one metal
circled by a ring of another metal.
-
With the above information, consult
a coin catalog and see if you can find an exact match for your coin
described in the catalog.
Tips:
Take the unknown coin to a coin dealer
for assistance in identification if you cannot find an exact match in a coin
catalog.
Posting the relevant details of the
unknown coin to a USNET newsgroup devoted to coin collecting may get you an
identification response.
Determining
the Grade of a Coin
Coin grading is a term used to refer to
the process of determining the condition or quality of a coin. It is essential
to know what the grade of a particular coin is, because, as a general matter,
the higher the grade of a coin, the higher its numismatic value.
Coins are most often graded these days
on a 0-70 point scale devised many years ago by Dr William Shelby and documented
at some length in the "Official A.N.A.
Grading Standards for United States
Coins" published by the American Numismatic Association.
Under this method of grading, the
higher the point scale accorded a particular coin, the better its quality. The
process of coin grading, being somewhat subjective, is more of an art than a
science.
While accurate grading requires skill
and experience, determining an approximate grading is possible for even a novice
coin collector. The following sets out the basic characteristics and most
commonly assigned point scales that define coin gradings, starting from the
highest grade to the lowest.
1. Mint State
Perfect Uncirculated (MS-70) Mint state uncirculated coin in perfect
condition, showing no traces of wear, blemishes, scratches, handling or contact
with other coins. The best quality coin possible.
2. Choice
Uncirculated (MS-65) An above average uncirculated coin which retains
all of the original mint brilliance or lustre but has a very few contact marks
on the surface or rim which are barely noticeable.
3. Uncirculated
(MS-60) An uncirculated coin having no traces of wear but which has a
few contact marks, surface spotting or lacks some of its original lustre.
4. Choice
About Uncirculated (AU-55) A coin having very light wear on only the
highest points of the design but no other defects and with most of its lustre
remaining.
5. About
Uncirculated (AU-50) Coin has evidence of light wear on many of the
high points but at least half of the mint luster is still present.
6. Extremely
Fine (EF-40) The coin design is lightly worn in most places but all
the features remain sharp and well defined.
7. Choice Very
Fine (VF-30) Light even wear on the surface and highest parts of the
design but most major features and the lettering are sharp.
8. Very Fine
(VF-20) Minor features such as some of the finer hair detail,
feathers, etc. will be moderately worn. Shows moderate wear on high points of
design. All major details are clear.
9. Fine (F-12)
Moderate to considerable even wear over most features and the lettering. A lot
of the details are worn through but you can still see a good deal of the design.
10. Very Good
(VG-8) The entire design is weak, but a few details are visible. Well
worn throughout but coin rims still visible.
11. Good (G-4)
Heavily worn but design and legend still visible although quite weak in spots.
Many details are gone.
12. About Good
(AG-3) Very heavily worn with portions of lettering, date and legends
worn smooth and barely discernable.
Reference: About.com
|
