How Does a Coin Collector Know the Value of a Coin?
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Identification
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Identifying the coin is the first step in the process of determining it's value. A coin collector will look to see the date on the coin, the country of origin and the mint where it was pressed, if applicable. For coins in the U.S., this process is fairly simple--but if it's an ancient coin, the collector must take note of all markings and lettering.
Mint Errors
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A collector will also check for special conditions and mint errors that will make the coin more valuable. There are occasionally double-faced coins, coins missing letters or mint marks that will make the coin a rarity and therefore increase its value. Using a jeweler's loupe, a collector will inspect the coin for oddities and make note of any findings.
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The Materials
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The materials used to make the coin also help to determine its value. Silver and gold coins will be more valuable than coins that use a nickel or copper blend. A coin collector can identify the coin material visually or through her knowledge of coins made during that period, such as ancient Greek coins.
Grading the Coin
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The grade of the coin also determines its worth. If the coin is in perfect condition, its price will be higher than an older coin that has wear or is marred in other ways. Coin that have faces with a lot of wear will be less valuable than coins with clear markings.
Checking the Resources
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Once all of the identifications are noted on the coin, a collector will check common resource books that help dictate the value. Online users can use a site such as Coin Resource or reference books such as "Ancient Coin Collecting," by Wayne Sayles.
Demand for the Coin
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A coin's value is also determined by demand, so a collector might look into whether or not the coin is rare enough to have other collectors bidding. A collector will check auction houses and talk to other collectors at trade shows to help determine demand for a particular coin.
Appraisal
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If the collector is new to the hobby, he may choose to have his coins appraised by an expert. It may cost a bit, but if the coin is a really unusual or ancient coin, the knowledge gained by dealing with someone with years of expertise will make it worth the time and can lead to better decisions if the collector wants to sell.
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Resources
- Photo Credit Photos by Joe Geranio Flickr.com
