The value of a coin beyond its value in its constituent metals is called its numismatic value. The value of a coin in regard to value of the silver or gold in it is its melt value. What makes a coin valuable, besides it’s value in precious metal?
Three major factors include condition, rarity and liquidity.
The condition of a collectible coin is extremely important in regard to its value. Consider what a coin went through in its lifespan. A coin minted in 1921 has been in cash registers, carried in pockets, placed in bags and such for years. The handling of these coins have created wear, scratches and contact marks which in turn affect how well the relief of the image survives and how much luster is retained in the background. Coins like these tend to be on the lower end of the scale, and most of their value is as simply metal.
Some coins may have been pulled out of circulation by collectors, or perhaps packed up in bags and placed in a vault as collateral for paper currency. The US Mint will save back coins and make them available to collectors as “proof sets” or other uncirculated condition. These sorts of coins have far less wear on them and have a higher grade.
A coin’s rarity will affect the value as well. A very rare coin can be quite beat up and still be very valuable, well beyond the metal value. Often, rare coins are those with errors, like a Roosevelt dime that was minted without a mint stamp. The rarer a coin, the more likely it is to be valuable.
The final factor is liquidity. Liquidity refers to how easily a coin will sell at market prices. A coin that is of low liquidity is going to sell at a considerable discount versus a sought-after coin that sells above what the market ought to demand.
Jewels on Hampton has a wide variety of collectible coins, and we can help you get an idea what condition your coins are in. We offer top dollar for your collectible coins, and we are happy to help you expand your collection. Visit us soon for your coin collecting needs.
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