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Determining Coin
Values
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| by Charles Roman
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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 significance.
Precious Metals and Coin Values 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 uncirculated
coins are usually more valuable than coins that have
been passed from hand to hand. Uncirculated 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.
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