gold coin

A Penny for Your Thoughts: 4Things That Tell You the Value of Coins

gold coinDo you ever wonder why a newer coin is sometimes worth a thousand dollars more than a hundred-year-old, vintage one? It’s not really about how new or how old the coin is. A multitude of factors determine sits market price and value.

It’s a complex market. It is an industry difficult to understand, but when you are considering to buy or sell one, it is important to know how to determine the value of the coin.

Mintage

The value of the coin depends on the supply of it in a specific grade. The initial mintage of that coin tells the supply available to the market. In most countries, the coin “dies” with the year on it. This means that once the year ends, companies will stop manufacturing that particular coin and there will be a limited supply of it.

Rarity

Most modern coins are not rare, except for a few, such as the Mickey & Friends coin sets or any autographed coin. Some Horses of Lore and Legend coin sets from Australian Gold and Silver Exchange, for example, are extremely rare because there have only been 50 signed sets of them ever to be released.

Demand

Without demand or without people fighting for a collectible coin, the coin would only get its face value. A 10c silver coin, for example, will only be worth no more than 10 cents if you trade them in.

If you have a recently released collectible coin, it will not be popular among collectors because it’s abundant. When years pass and new series come out, that particular coin will have an increased value and you can trade it for something worth more—that is, if you know how to care for it.

Condition

A coin with a mint condition usually has a higher value than one with a good condition. This is different from those coins that only have everyday wear or nicks when they rub together, or have any other defects from simple human handling.

As long as you know the value of the coins, collecting them can be your sure-fire strategy for lasting wealth. It’s nice to collect for fun, too.