4 Four Factors That Influence Numismatic Coin Prices

Knowledgeable coin purchasers and investors recognize that a numismatic coin’s price is not necessarily the same as its value. A dealer’s buying or selling price can be shaped by several considerations, so, when this article was originally published, prospective investors were encouraged to approach new purchases carefully. Before making another purchase or trying to sell coins online, readers were invited to consider four basic influences on a sale.

Mintage and Production Volume

A very old coin that remains in excellent condition does not automatically command a high sale price. In many cases, the number produced, or mintage, is a more important consideration when assessing a coin’s value. Over the years, the U.S. Mint and its various facilities around the country struck coins in widely different quantities. The Carson City, Charlotte, and Dahlonega Mints, for example, generally produced fewer coins than facilities in Philadelphia, Denver, San Francisco, and New Orleans. Coins were also made from different metals at different points in history, and that composition can contribute to value. Major events, including the Civil War and World War II, also affected both the number of coins produced and the metals selected for their manufacture.

Condition

At the time of publication, sellers seeking to sell rare coins at a substantial premium could generally expect buyers to look for coins showing little or no wear. Most coins were made for ordinary circulation, rather than as proof or specimen coins, so they commonly show contact marks. These marks often resulted while coins were moved in canvas bags from the U.S. Mint to individual banks. Their presence does not by itself mean that a coin entered circulation. Instead, the amount and nature of the contact marking help establish the coin’s grade. Small details may materially affect value, which is why the original article emphasized using a reputable grading service or dealer.

Survival

A survival rate estimates how many examples of a particular issue are believed to remain, and it is generally understood to be an estimate rather than an exact count. Age, the quality of the original mintage, the number intentionally destroyed, and other circumstances can affect that rate. At various times in history, coins were withdrawn from circulation, returned to the United States Treasury, and melted. In particular, the Pittman Act of 1918 led to the destruction of nearly 270 Morgan silver dollars. Many silver coins were also melted in 1979 and 1980, when silver reached an all-time high of $50 per ounce.

Supply, Demand, and Market Conditions

Although rare-coin survivorship matters, rarity alone does not establish value. When this article was originally published, dealer prices could also be affected by the available supply, collector demand, and the economy’s place in the business cycle. For instance, if a dealer had a large inventory of a rare or numismatic coin, that coin could often be purchased at a lower price than during periods when it was scarce. During a strong economy or expansion, people may have more discretionary income, which can lead bidders to push numismatic-coin prices higher. In contrast, contractions and recessions may bring lower rare-coin prices because collectors are more inclined to reduce discretionary spending in that setting.

When this article was originally published, Atlanta Gold & Coin Buyers was described as a trusted Metro Atlanta coin dealer with an A+ Better Business Bureau rating and membership in recognized industry organizations. The original article stated that clients could review its coin prices and buying rates online and that mail-in appraisals were offered through USPS. At publication, readers were invited to Complete our contact form today to learn about buying and selling rare coins and bullion with an expert numismatist.