Why Do Coins Go Up in Value?

People have been collecting coins for ages. It hasmarket value.
only been recently that collectors have beenThe two factors that directly influence a coin's
paying very close attention to the grades of themarket value is supply and demand. Separated,
grades that they collect. A grade can definitelythey are almost worthless. But together, they
make a coin go up in value. There are also manycontrol the whole numismatic market. When a
other factors that can indirectly influence a coin'scoin is in demand, its' value should go up. But if its'
market value. But I found that there are twosupply is unlimited, it probably won't go up in value
main reasons that directly effect a coin's value.by much. The opposite of this is also true. If a
These two factors cause them to go up andcoin has a very low supply, it may not be worth
down in value.much if nobody wants to collect it.
Many things can influence a coin's market value.In the right conditions, a coin can continually go up
Some of these factors could be, but are notin value. If a coin has a low supply and a high
limited to: grade, color, mintage, population, currentdemand, it may never see a downturn. This is the
precious metal values, popularity, and availability.reason why a lot of key dates do not go down in
Each of these factors influence a coin's value in avalue. But, some key dates don't really go up in
different way. But all of these factors onlyvalue because there is no demand for the coin.
influence a coin's value indirectly (more or less).One good example is the 1970 D Kennedy Half. It
Each also have different influences on a coin. But,only has mintage of 2.15 million, but its' demand is
no one factor can make or break a coin'sextremely low. But because supply and demand
"collectability."have to go together, this rare half dollar may
A low enough mintage could make a coin scarce.never skyrocket in value. A BU specimen could be
But it may not be worth much without stronghad for a mere $20 bucks.
demand. A high grade may boost a coin's value,When picking rarities, it is always best to pick low
but if its' population was sky high, its' value maymintage coins with high demand. The low mintage
plateau at some point. Precious metal values mayis easy to figure out. But, the demand part is not
influence a coin's value, but not all coinsparticularly quantitative science. So I think the
are.9999% pure. Furthermore, some coins areeasiest way to figure out the demand is to select
worth a lot more then their precious metalpopular series. Or you can select the more
content. So their precious metal values maybepopular key dates. The best investments are low
irrelevant to their book values. Colors make all themintage coins that has strong demand. It's these
difference in the coin market. But a coin cannottwo factors that drive a coin's value up and down.
be worth more then its' true market value. So, aSo don't hesitate to go straight for the popular
white coin is easier to market then a blackenedkey dates when you are looking for an
coin. So color only controls a coins salability. Clearlyinvestment that has strong reason to go up in
none of these factors completely control a coin'svalue.