Hobby

In the coin-collecting world, the value of individual coins is in constant flux. There are various guides online that are updated regularly to help coin collectors keep up with the ever-changing market. These guides generally decide upon the worth of specific coins by consulting dealer advertisements in trade papers, dealer fixed price lists, auctions, and activity at coin shows. Some guides focus on coins from a certain country, while others are more comprehensive.

Coins have a wholesale and Fair Market Value. Generally dealers are the only buyers able to purchase coins at wholesale prices. The Fair Market Value is the price a dealer asks for a coin. This value depends upon the rarity of the coin. The more coins available within a certain grade that are available, the more competitive and thus lower a dealer’s prices will be.

Dr. William Shelby developed the coin grading scale used in the United States. It is based on 70 points, with 70 being the perfect coin. In addition to the numeric grade, there is also a letter designation assigned to each coin. For example, the letters MS stand for “mint state”; these are uncirculated coins with no scars, blemishes or other marks. To give you an idea of how rare an MS-70 rating would be, the average new penny from a brand new roll is MS-63. A coin graded MS-68 would be one in 100,000.

A grade of AU means “almost uncirculated” This level includes AU-59 to AU-50. The letters XF or EF stand for extremely fine, and coins with this grading have very little wear. A very fine (VF) coin will show some wear, but most of the detail is visible. Coins in this category will be more affordable, but still quite collectible.

There are a number of resources available if you want to learn more about grading your own coins. Visit your local library to find books on coin collecting and grading; your local coin or hobby shop may also have some good titles to consider. To talk to an expert, plan to visit one of the various coin conventions or money shows; you are sure to find someone there who will give you some inside tips on how to evaluate a coin. And you can find any number of coin appraisers, both locally and nationally, by doing a quick search online. Be sure that the appraiser has the appropriate credentials and experience to give you a fair and valid appraisal.

Online sources, as well as pricing guides, help collectors to determine whether or not a coin is fairly priced. Collectors must keep in mind, however, that these guides are only approximations of actual values. The best way to determine whether a coin price is good or bad is to comparison shop. Dealers set prices based on these guides as well as market research. In short, dealers and collectors are in similar situations in determining fairness for coin prices. Some dealers may take the chance of losing an entire sale by setting a price too high. However, if the buyer hasn’t done enough research, the dealer ends up with the upper hand.

Software programs can also help determine your coin’s value, and its fair market price. There are several software programs out there, and most of them send yearly updates so that you have the most recent coin values. If you are doing a lot of coin pricing, a software program like one of these can be indispensable. To find several programs, do an online search for “coin collecting software.” Many of these are available for a free trial, and others have online tutorials so you can try before you buy.