Coin Condition and Value
Many people often refer to coin collection as just another hobby. But the fact of the matter is that coin collection is not just something you do to pass time. It is also a clever investment. In short, it’s an exciting and lucrative activity.
Coins, along with possessing tremendous ancient significance, usually have a high extrinsic value as well. So, in case of a financial crisis (national or domestic), you can obtain a considerable amount of money by selling off your coins. Hence it’s a safe investment.
However, the coin value and price vary depending on different factors, with the most important ones being type, condition and scarcity. That is why, it important to give heed to the coins you choose to buy, so that they may benefit you later on:
Scarcity is one of the factors through which the value of a coin is determined. Generally, the scarcer the coin, the higher will be its monetary value. Moreover, the scarcity of a particular coin is judged by the number of samples that have been minted over time. Keep in mind that the scarcity of the coin doesn’t have to do with how old the coin is. For example, a coin species that’s more than a thousand years old, but are still quite common won’t be worth more than a few dollars. On the other hand, coins like the Liberty Head Nickel are worth a fortune because there are only five specimens still in existence.
This is by far the most important determinant of coin value. Two coins of the exact same year and denomination may have a huge difference in monetary value because of the condition of those coins. The condition of a coin is determined by a numerical grading system. The highest grade that a coin gets is 70. Such coins are in perfect condition, with no flaws whatsoever and therefore, cost a fortune. Coins graded between 60 and 65 (mint state) have the design intact, with adequate shine. Coins with an AU-50 grade have approximately 90% of its design intact as well as sufficient shine.
Coins that are lightweight and a little worn out are graded from EF 39 to 40. Coins having a relatively neat appearance and visible elements fall between 20 and 38. The grade F 11 to 19 is assigned to those coins that are extremely worn out, although some basic details are visible. The worst grade that a coin can get is 1. Such coins are in a poor condition and are perhaps even unrecognizable. You can learn about the price and condition of your coins by contacting a professional coin grading agency.
The value of a coin also depends on the material it’s made from. Two of the most common types of coins are gold and silver. With rate of silver relatively high (around $21 an ounce), silver coin prices are expected to be as high as $22.50. Note the price may vary depending of the grade of the coin. On the other hand, gold coin prices are also pretty high. For example, a large Liberty gold coin is worth a staggering $20. Again this value increases or decreases based on the coin’s condition.