Q:

What affects the price of rare coins?

A:

Quick Answer

Factors that affect the prices of rare coins include scarcity, condition, supply and demand. Rare investment-grade coins are a good investment, especially those with collector demand.

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Full Answer

Rare coins are getting increasingly difficult to find, meaning they typically increase in value. Demand and supply is a better indicator of rare coin scarcity than mintage, which is the number of coins originally issued.

The condition of the coin plays a major role in its value. Rare coin experts with specialized training inspect the coin’s front and back carefully to determine its condition. The condition of a rare coin is described using a numerical scale from 1 to 70.

Supply plays a similarly important role in rare coin values. Supply of rare coins is limited simply because rare coins are no longer minted. Other factors that affect supply include government intervention, mishandling, attrition loss, hoarding and donating to museums and collections.

Lastly, factors that affect the demand of rare coins include track record, quality, historical significance and rarity. The rare coin market is mostly made up of investors who are concerned with returns and collectors who are typically more interested in building life-long collections. Certified rare coins are usually placed in tamper-proof, hermetically sealed plastic holders. These usually have the certification and grade permanently displayed on the holder.

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