Questions about coins and collecting

A. Perhaps the most common question in all of the industry and perhaps the most complex. There are several factors that determine the value, value being the key word, of the coin. They are listed here not necessarily in order:

Condition of the coin. By condition, we mean the appearance of the coin. Is it in perfect shape or worn to the point that it is nearly unidentifiable? This is known as the grade. Coins are graded on a scale of 1-70 for coins meant for circulation. See Grading for full descriptions.
Scarcity. By scarcity, we mean how rare or scare is the coin? This is not to be confused with mintage as some coins that had large mintages could be scare or could be scare in a certain condition. All US coins have an actual mintage meaning of number produced. Some older coins have an estimate due to poor record keeping or lost records in the early days of coin production.
Mintage. As described above, total mintage of a coin can also have impact on price. In most cases, a coin with a low mintage will have a higher value than those with a higher mintage. This is of course not always true as demand for a coin also can impact value.
Demand. The demand for a coin is probably the item that creates value more than anything. As demand for a coin goes up, then so does value. Many key or semi-key coins in excellent condition often times, but not always, sell for more than retail listed prices

Generally speaking then, a coin is worth only what someone else will pay for it. Many folks who think they have a valuable coin become disenchanted when they take it to a dealer. Unless it is high in demand, many dealers will often snub their nose at the coin(s) or will offer far less than what the collector was expecting. Looking up the value of your coin(s) in Coin Prices, Coins or other trade publications give collectors a false sense of the value of their collection. These prices are often retail prices, meaning, this is what you might expect to pay for a coin from a dealer. Remember, a dealer is in business to make money to feed his/her kids/family. Dealers will offer far less than what is published in these magazines.

Q. What are the best coins to own?

A. The best coins to own are those that give you enjoyment. If you are a coin collector, you collect coins for the enjoyment rather for the investment potential. As collectors, we all hope our collections rise in value, but this is not always the case. Additionally, the answer to this question from an investment perspective will change everyday with the rise and fall of the market. Silver and Gold prices obviously have impact on demand and price. If you are a lover of the Lincoln cent, then you should learn everything you can on the Lincoln cent and concentrate on that series or a few others.

Q. Can I make money collecting coins?

A. Yes and no. We are currently in a bull market for coins but that could change any time. Also, remember, when you buy coins at or near retail, you can expect that the coin(s) will have to appreciate to make a profit as a dealer will not generally give you retail value of a coin

Q. What is a good strategy for collection coins?

A. Again, this is entirely up to you. Many folks concentrate only on proofs or mint sets while others concentrate on a specific series or two. Another option is to build what is called a “type Set”. A type set is one coin of every type coin and denomination produced by US mints. Certainly a challenging task you upgrade to finer coins.