| p>The question that every coin collector wants to | | | | aging a thousand years normally sells for more or |
| know the answer to is "What is that coin's value?" | | | | less than ten dollars since there are many of |
| If we are buying we want to know the value to | | | | them all throughout; while a "1913 Liberty Head |
| ensure that we get a "good deal", if we are selling | | | | Nickel" can sell for up to or over a million dollars |
| we want to maximize the price we receive from | | | | since only five specimens are known to be in |
| the marketplace, or maybe we are simply | | | | existence. |
| observing and have a curious interest as to the | | | | Demand - The other part of the economic |
| price a coin will fetch. Regardless of our reasons, | | | | equation discussed above. As demand increase so |
| coin collectors are always in search of the value | | | | does the price of a coin, all things being equal. |
| of a coin. | | | | Even plentiful coins can command a high price if |
| There are many factors that influence a coins | | | | the demand is high enough. For instance, "1916 D |
| value. Ultimately it is determined by what | | | | dimes" are very much abundant than the "1798 |
| someone will pay for a coin, but there are also | | | | dimes". Yet in spite of this, "1916 D dimes" sells so |
| some fundamental factors that drive coin prices. | | | | much more, for the fact that there are many |
| The factors below can affect coin collecting | | | | individuals collecting 20th century dimes than 1700 |
| values: | | | | dimes. |
| Grade - The grade of a coin plays a significant | | | | Bullion Value - The precious metal content of a |
| role in its value. The grade refers to the condition | | | | coin can determine value. It is generally true that |
| of the coin, for example, if the coin has lots of | | | | a gold, silver, or platinum coin will not sell for less |
| scratches and evidence of mistreatment its grade | | | | than the coins value when melted. |
| will be lowered compared to a coin in perfect | | | | There are many variables that affect coin |
| condition. | | | | collecting values, and ultimately it comes down to |
| Rarity - How many coins are available (supply) | | | | what a seller is willing to pay for a particular coin. |
| influences a coins price. Basic economics teaches | | | | However, knowing the fundamentals that affect |
| that if there is more demand (buyers) than sellers | | | | value and conducting research into how these |
| (supply) the price will be higher than if the inverse | | | | impact the underlying of a particular coin can help |
| were true. Rarity does not mean old, and in fact, | | | | you answer the question "What is the value of |
| a coin's age has very little direct influence of a | | | | that coin? |
| coins price. For example, Several Chinese coins | | | | |