Factors Determining Coin Value

There are great number of factors that influence the value of a collectible coin. Some of those are inherent to the coin like age, condition, mintage limit and errors. Other factors are only market forces, which can be changed by mass psychology, economic factors and dozens other causes.

Numismatists have no control over large scale factors. But when considering a buying or sale, there are still many aspects that a dealer can and should look at.

Coin grade is the 1st and most obvious of those factors. Even before seeking out one of the pro grading services available today (PGCS, NGC), there are determinations collectors can make for themselves. A visual inspection will allow one to categorize the coin into Good, Mint, Flawless, etc. Coin Catalogs can help make that determination, too.

History is an important factor in the coin value - a 1860 dollar will generally be worth more than a 1960 dollar, simply because of the age. But age is only one obvious factor of history. Ownership history, wear, mint location and others contribute.

Rarity is important. That factor isn’t inherent to the coin, but is a relative quality - the coin has inherent properties apart from how many others were produced or exist in a given condition. Nevertheless, the fewer of a certain type produced the more likely a coin is to be worth more than normal.

Coins produced at the Denver or San Francisico mints tend to be more rare, because Philadephia produced many more than any other. Look for the ‘D’ (Denver), ‘CC’ (Carson City), ‘S’ (San Francisco) or no mintmark for Philadelphia.

Rarity can be influenced by another factor. If a coin was struck in some fashion that produced one of various kinds of errors, it can be more rare as a result. For example: colonial coins with planchet flaws or weakly struck designs. Coins that have lint marks, in which foreign material came between the planchet and the die, can affect the value.

So-called ‘errors’ of that kind, along with others (file marks, double-strikes) can increase the worth of a coin simply because they don’t happen often. And so, the coin in question is different, and therefore more rare, than other minted at the same time.

A damaged condition generally decreases coin value. But in the case of errors, it may be higher. This is a different situation from those that simply have common defects, such as nicks, wear or others. That can be produced by bag damage (defects produced by coins rubbing together in carrying bags), use in machines and human handling over decades.

Market psychology is an important factor in economic value. Fads come and go. For example, paintings are notoriously fickle in monetary value. Coins suffer a similar doom. Those factors are not under the numismatists control. The best one can do is simply try to guess as well as possible about future conditions.

But carefully investigating the properties of a coin and researching its history represent the “first cut” for determining its value.