What Makes a Rare Coin Valuable?

Rare and collectible coins are one of many ways educated money managers look to preserve their hard-earned cash long-term. A coin collection is a valuable treasure that can be passed down to future generations, or it can be sold to generate cash, potentially with a healthy profit! Collectors of valuable numismatics find luxury in searching for coins based on monetary, rarity and historical values. 

Monetary Value

Collectors consider a rare coin collection to be a long-term investment culminating from years of learning and experience, one that can be passed down for generations. The monetary value of coins can be determined by a combination of factors such as the rarity, age, condition, and historical value of the coin.

It is worth repeating, that investing in rare coins comes with a certain level of risk, depending on the experience and knowledge of Numismatics the collector/investor possesses. Check out our article: “The Differences Between Raw and Certified Rare Coins” to learn more about collecting and investing in raw and certified coins.

Rarity Value

Another element of coin collecting is considering the rarity of coins. The rarity value that coins hold stems from their mintage (how many were originally produced), survival estimates, and the rarity of their condition.

 Remember: these Historical coins are not being produced anymore, and they are only getting older as time goes on!

How does mintage affect a coin’s value?

Coins with a lower mintage are rarer simply because there aren’t as many of them. The more difficult a certain coin is to find the more collectors are willing to pay to own it. Some coins may have been minted in higher volumes, however melt-offs and shortages in circulating currency could have resulted in lower survival populations for that date, making the coin rarer than its original mintage might imply.

Does a coin’s condition affect its value?

Some coins are only valuable due to their condition, or “conditional rarity”. The better the condition of the coin, the more monetary and rarity value it holds. Coin collectors are often willing to pay a premium for coins that are in better condition. Coins in nicer conditions are generally more valuable than coins with signs of wear or damage. The rarity of condition can add to the coin’s scarcity and value.

Historical Value 

Many people are interested in the rare coin market simply for the little piece of History they can hold in their hands. For example, the rare coin market is made up of many coins minted during significant time periods in US History, like the American Colonial era, the Civil War, World War 1 and World War 2, to name a few. These coins can often be a window into the past, providing a tangible reminder of the History of our Country.

Should I Collect Rare Coins?

A rare coin collection can be a great way to secure your wealth for the future, as well as being a rewarding hobby. The potential to increase in value over time makes rare coin collecting an attractive option for investors and hobbyists alike. You can also find great pleasure in the hobby, as you appreciate the stories and history behind each coin you collect.

Give us a call today to visit about your collecting and investing questions and needs!

Toll-free: (888) 409-8344.

Or, email us at: info@greatsoutherncoins.com

 Happy Collecting!