| There is no doubt that the value of a coin is of | | | | safe to say that older coins are more valuable |
| utmost importance when it comes to coin | | | | than recent ones. But you cannot judge this on |
| collecting. Coin collection values is the basis of the | | | | first look - if a coin is worn out you cannot |
| entire hobby and so is important when collectors | | | | superficially say that it is old and therefore more |
| are looking to buy or sell their collection. So it is | | | | valuable because you may be looking at a |
| not a big jump to say that the biggest mistake a | | | | counterfeit. Alternatively you may be looking at a |
| coin collector can make is to misjudge the value | | | | real coin thinking it is a fake coin! It is only through |
| of a coin. | | | | research and the use of specialist equipment that |
| So how can you avoid this mistake? To answer | | | | you can truly identify the coins rarity. Even a |
| this you need to realize what goes into | | | | simple magnifying glass can go a long way to |
| determining the value of the coin; there are four | | | | establish a coin collections value. If you can |
| main factors to consider: | | | | correctly identify the rarity factor you can make |
| 1) The Condition of the Coin - Also Known as | | | | thousands of dollars! |
| Grade | | | | 3) Bullion Value |
| The biggest factor which decides coin collection | | | | A sometimes overlooked factor is the value of |
| values is the grade (or condition) of the coin. It is | | | | the metal used in producing the coin - this is |
| of no significance how precious a coin is if there | | | | known as the bullion value. But coin collectors |
| are scratches, worn out inscriptions and | | | | must realize that this is a crucial factor in |
| discolorations because these will considerably | | | | determining coin value because gold and silver |
| reduce the coins value. So the first thing a | | | | prices are rising to all time highs - if a coin |
| collector should do is inspect the general condition | | | | contains enough of a rare metal this can push the |
| of the coin. Collectors need to realize that if they | | | | value of the coin higher. Obviously gold and silver |
| are looking a coin with unrecognizable inscriptions | | | | are no longer made to produce coins so they are |
| and many scratches, they are probably looking at | | | | harder to find (and therefore of more value). |
| a counterfeit coin. But it takes a more | | | | 4) The Laws of Demand and supply |
| experienced collector to identify those coins from | | | | And last but certainly not least is the law of |
| ancient eras where it is reasonable for them to | | | | supply and demand. Simply put, the more rare a |
| be scratched or worn out. I recommend that | | | | coin is, the more collectors which are seeking to |
| novices go to experienced dealers in order to | | | | add it to their collection. This pushes the price up |
| establish the value of that coin. | | | | until the supply of that coin can support the |
| 2) The Rarity factor | | | | demand for it. Conversely, even a vintage coin |
| The next factor to consider is how rare it is - it is | | | | can have little value if it is readily available. |