What to Keep, What to Sell - Appraising Your Coin Collection

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Copyright 2015 by Kevin Flynn, All Rights Reserved

Some collectors want to sell part of their collection are retain part. They want to know which coins are best to keep. This is based upon your objective of keeping coins.

Different coins for different reasons. Silver and gold bullion coins are used as a hedge against the dollar. If the dollar is doing well, then stocks normally are on the positive side, which helps investments such as your 401K. If the dollar is doing poorly, this usually has a negative effect on the stocks, and a positive effect on silver and gold. When the dollar was doing poorly in 2011, stocks were down, and gold was up to $1,900. With the economy questionable, and many indications that middle class jobs are not returning and that we may be returning to a depression, having a hedge against the dollar helps round out your investment.

When considering 90% silver coins, such as dimes, quarters, and half dollars dated 1964 and prior, older series and coins should be command a greater premium over their bullion value as there is an additional value associated with their numismatic value. A Mercury dime will normally be in greater demand and command a greater premium than a Roosevelt dime. A Walking Liberty half dollar will command a greater premium than a Franklin or Kennedy Half Dollar. If choosing which coins to sell, newer coins should be sold first. As stated in the last paragraph, if the bullion value of silver or gold is low, it might be better to keep your 90% silver coins until the price rises.

Diversity within a series should also be weighed. Collectors take pride in completing a series with each date and mint mark available. If the goal is to save those coins that will be worth more, complete sets will sometimes bring more money than selling the coins individually. Plus this adds to your own accomplishment of completing a set. Set aside one of each date and mint mark with the highest grade for each.

Modern coins currently have no premium for them. New rolls of cents, nickels, dimes, and quarters from 1970 onward can be purchased for almost their face value. It is unlikely that these coins would develop a significant premium during our life time, but imagine what they might sell for in 100 years. Imagine if you great-grand-parents purchase new rolls in 1900 and passed them down through generations. These are coins that we can leave to our children with instructions to not sell them.

Normally the coins with the best return over the long term are those that have the rarity, grade, and demand. For example, in the Two cent series, only 100 proof coins were struck in 1864. In 1994, these coins could be purchased for approximately $600. Today they are worth around $2,800. You can get an idea what your rare coins might worth by check auction sites that list prices realized such as Heritage Auctions.

The majority of coin collectors have a favorite series. When selling their collection, some have chosen to keep parts of their collection that has a special meaning. This way they can continue to enjoy was has brought them happiness during their life.

If optimizing your return for selling your collection is your objective, you need to contemplate those factors which help determine your coins values. If the value of silver and gold is high, it is a good idea to sell them, if low, it makes more sense to hold them. Researching the prices realized for coins of the same grade, will help present those coins which prices are stagnant and have little potential for rising as compared to those that are in demand. The majority of non-silver modern proofs sets such as those from the 1970s and 1980s normally have no premium as they were struck in high mintages, unless of course they contain rare die varieties. It is better to sell those coins that have no potential for increasing in value. The exception being those coins that are now worth just their face value that you intend to pass down through your family.

One final note on this subject, if you find an individual who is passionate on collecting the type of coins that you are selling, it is always better to sell, this maybe for coins you wished to keep for yourself. Coins are worth what someone is willing to pay for them. If you find a buyer who is willing to pay the type of premium that is more than what your research tells you the coins are worth, opportunities do not often come like this every day.

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Next: Local Laws for Selling Coins and Precious Metals
Copyright 2015 by Kevin Flynn, All Rights Reserved