| The value of a coin is not the same as its price, | | | | mirrored surface than normal coins. Proof coins |
| and this difference you will need to understand in | | | | are struck more than once using planchets that |
| order to work out the true value of your coin | | | | have been specifically designed for the purpose. |
| collection. The price of a coin is what you would | | | | You should use the price of your coins when you |
| pay to buy it, while the value of a coin is what | | | | are deciding how much you need to insure your |
| you would be able to sell it for. | | | | collection for, since this is what you would have to |
| Prices for US coins can be found in the Red Book. | | | | pay in order to replace them should something |
| The price is what you would pay to a dealer in | | | | happen. When you purchase insurance, assess |
| order to purchase a coin, or what you would find | | | | your collection using the Red Book, while if you |
| that coin being sold for elsewhere. It is often | | | | are looking to sell, you can determine their value |
| called the retail price. Factors that will affect the | | | | using the Blue Book. If you are interested in |
| price are how rare or available it is, and what sort | | | | buying, then the Red Book will give you an idea of |
| of demand there currently is for a particular coin. | | | | what you should expect to pay in a shop or to a |
| Each type and grade of coin will have its own | | | | dealer. |
| specific price. | | | | You should never rely too much on the prices and |
| The value of a US coin can be found in the Blue | | | | values listed in these books, however. There will |
| Book. It lists the value a dealer will place on your | | | | be variations according to the quality of a |
| coins if you try to sell them, which is usually about | | | | particular coin and fluctuations in the market over |
| half of the retail price. This is because they will be | | | | time. When you are buying coins you should also |
| expecting to make a fairly substantial profit when | | | | be aware that not every coin sold at less than |
| they resell the coin. Gold coins are valued at a | | | | the listed retail price is as much of a bargain as it |
| higher proportion of their retail price, generally | | | | seems. If you are lucky enough to find a coin that |
| between 75% and 85% of it. Their greater value | | | | the Red Book prices at a hundred dollars in a |
| stems from the value of the gold bullion. | | | | bargain bin of coins being sold for ten dollars each, |
| Collectors usually buy what are known as proof | | | | then chances are you've found a great deal, and it |
| coins. There are manufactured differently from | | | | was put in there by accident. However, if there is |
| normal coins that may be sold as "uncirculated". | | | | a load of the same coins in that bin for this low |
| Proof coins do sometimes find their way into | | | | price, chances are the seller is desperate to get |
| normal circulation, either because someone made | | | | rid of them, even at a loss. This devalues the coin |
| a mistake or because they purposely used them. | | | | overall and could make selling it for a profit more |
| They are designed to be collected, however, and | | | | difficult. |
| are made to have greater detail and a more | | | | |