How Are Collectors Coins Valued Anyway?

Some collectors’ coins sell for millions of dollars at auction. Others from similar runs go for as little as $20. The gulf in prices can bewilder an outsider.

Just what makes these command such high prices among coin collectors? What steps do people take to preserve the value of their coins?

Take a look with us as we go over what makes coins valuable. You’ll learn about some good gifts for coin collectors in the process.

Scarcity Times Condition

Value comes first from a coin’s scarcity, then from its condition. These two factors, taken together, will almost always determine the value.

Scarcity

Think of a coin’s rarity as its base value. A coin that had only one short production run at one mint will command a higher price than your garden variety nickel. Collectors crave the unusual, and the rarest coins almost let a coin collector name a price.

While you might think age plays a factor in the value of a coin, scarcity and age don’t always line up. Some ancient Roman and Japanese coins were minted in enormous numbers and cost as little as $20. Conversely, many American coins go for top dollar.

Condition

A poor condition can drag the value of a coin down. A coin almost worn down to nothing will be worth less than a coin that looks like it is new.

Collectors have many grades for a coin’s condition. Even an uncirculated coin may receive downgrades in value for nicks and scratches that occur during transportation from the mint. The difference between Uncirculated, Brilliant Uncirculated, and Gem Brilliant Uncirculated can affect the final value.

Circulated coins face even greater scrutiny. The more time a coin spends exposed to the elements, the lower the value gets, as metal shaves off and details wear away.

Secrets for Protecting Collectors’ Coins

How do coin collectors keep their coins in good shape, then, to keep that value high? Coin holders for collectors have existed almost as long as people have collected coins. The technology has improved over time, but shielding one’s coins from the elements will preserve their value.

For those who collect unique but not necessarily expensive coins, simple holders work well. Littleton coin albums and other similar storage solutions, like multi-tiered cases, have earned their popularity among collectors. While not perfect, they avoid many common pitfalls in coin storage design and will protect most coins from the elements. 

Collectors with some major investments, however, will want stronger protection. The following things can damage a coin:

  • gases
  • handling
  • rubbing against objects
  • acid
  • storage in PVC

Accordingly, the best coin storage options use hard, inert plastic. Sometimes they also include ways to neutralize gases that could damage a coin.

Protect Your Rare Investments

For collectors, coins represent both a passion and an investment. Not all coins carry great monetary value, but their scarcity and condition can drive values quite high.

Interested in coin collecting and coin collectors? How about other hobbies? Try reading some more articles from our lifestyle section.

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