Rare coins tend to appreciate in value with time. As you may have guessed by now, the rarity and uniqueness of such coins do matter in appreciation. The prices of rare coins are never evaluated on the spot value of the metal alone, which is otherwise called the intrinsic value. What matters more is the numismatic value, and dealing in rare coins is always more complicated than buying bullion bars and coins. In this post, you will find an overview of how these coins are evaluated and how you can actually determine the value while investing and selling.
What determines the price of a rare coin?
Well, many factors may influence the price of rare coins, but more importantly, the rarity, beauty and the past of the coin do matter. For example, a coin might be decades old, but probably thousands of similar coins from the same era is up on sale, and in such cases, the price of that coin wouldn’t be high. Although it is rich in history, it is not rare. Secondly, the beauty and visual appeal of a rare coin are important. For example, if a coin has been in circulation and has too many marks and scratches, it will not fetch a very high price. The value of the precious metal – the intrinsic value – also does matter, and in that context, the value of a gold coin will be considerably higher than silver ones.
Buying and selling rare coins
First things first, always buy your rare coins from a reliable, known dealer only. The dealers should be licensed and absolutely transparent in the way they deal with such coins, and their experience in the numismatic industry is something you need to consider. In all situations, rare coins are considered to be liquid assets, because you can expect to get at least the intrinsic value of the coin if nothing else. You have to deal with a dealer who deals in such coins on a regular basis, and their experience with varied types of coins also matters. Unlike pawn shops, these sellers always use state-certified calibrated scales, and you can expect the best ones to have a A+ rating with the Better Business Bureau.
Do not buy rare coins blindly, and ensure that you will be able to sell of your investment in the future if need be. At the end of the day, you want to make money from your spending!