Coin Collecting Topics
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It makes sense to assume that the older a coin, greater will be its value. Wrong! Coin value is not necessarily dependent on its age. An ancient Roman coin might be much cheaper to buy than a nineteenth century American coin. Several factors determine coin value including rarity in occurrence, metal of composition, grade (i.e. condition of the coin at the time of purchase), and age.
Age of the Coin
While a centuries old coin might be an expensive item, age is not the determining factor of coin value. Some old coins are very hard to find and hence are in greater demand. But even younger coins that are not readily available might be as expensive or even more expensive than much older ones.
Condition of the Coin
Condition of a coin at the time of purchase is called its ‘grade’ and is judged by a Standard International Grading System. From poor condition of the coin to finer, these grades are listed as: poor, good, very good, fine, very fine, extremely fine, uncirculated and proof. Grade of a coin is an important criterion for determining coin value with lower grade coins falling cheaper than those higher on the grade scale. That is why the late 19th century and younger coins of the USA are cheap. An extremely fine grade coin can cast as much as ten times the value of a poor grade coin of the same age.
Rarity
Rarity is also an important determining factor of coin value. Rarity refers to the number of specimens of a particular coin available. While rare coins are generally costlier, the grade of the coin is more important in assessing the worth of the coin. Rarity is dependent on other factors, as well, such as the state of demand and supply. Many US coins are found in larger quantities than Indian coins of the same age. But the US coins are in great demand among the amateurs and hence coast much more than their Indian competitors. It is not very easy to determine rarity of coins and reference material should be exhausted before one can confidently determine the coin value of a particular item.
The coin market, like many other markets, is a tumultuous business. There might be great demand for one coin in the market and no demand for it after some time. To make a good purchase, it is important to be updated on coin value with reference to different types of coins. Coin catalogs and good coin magazines are helpful in updating on coin market.
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