What Makes The Coin Valuable?

So, adding to the OPs question..... the RedBook....are the values posted there not taking into account melt value?

There are several possible values to a coin. The Melt Value is the metal value of the materials used to make the coin. The Red Book Value is the amount the publishers of the Red Book have decided in their learned wisdom that the coin is worth to collectors. Rarity, desire of collectors and other factors are used to determine these values. On low grade common date coins of no particular numismatic value this will usually approximate the melt value.

The only values that really matter for the most part however are those placed upon it by buyers and sellers. If the Red Book says a quarter is worth $10 but I really think it is worth $20 and can convince you to buy it at $20 then it is worth $20, at least to you and I.

Don't forget about retail and wholesale buy and sell prices. The Red Book displays suggested retail values and is what many expect to pay for an individual coin at a shop or from others. Since dealers sell at prices close to the Red Book price due to it being a respected resource, they would buy coins at a substantial discount, they need to pay salaries, rent, the light bill etc. Often this is done in bulk or from estates. They will buy an entire collection and sort it out for individual sale on key dates.

Individuals selling individual coins also often use the Red Book as a resource and price their coins accordingly.

so all in all:

1. pretty much a coin is worth what the buyer thinks its worth
or
2. if the melt value is higher than what the coin itself if worth, then the coin would be sold at melt
or
3. if the coin is worth more than the melt value, then it would be sold at what its worth

The value of rarities is based on collector demand. Historically these have held well even when pm prices drop. Particularly in high grade, due to supply being low, prices often move regardless of metal value. The big question if metal falls so much is if collectors will leave the hobby or if the economy is troubled and collectors don't have money. That's what will influence the value of such a coin more than anything else.

If a coin is worth LESS than melt, it will sell for the value of it's metal, not the coin.

If a coin is worth MORE than melt, it will sell for the value of the coin, not the metal.

Easy cheezy.

How many were made and the condition is what makes a coin valuable !

The answer is a little bit of both. Of course, the higher the value of the intrinsic metal - the more it will effect the price. Even an AG Gold or a harshly cleaned or otherwise abused gold coin will be worth its metal value. A numismatic premium is based on the perceived rarity and popularity of the piece. If the famous 1933 Double Eagle was kept in someone's pocket and worn down until it was barely legible it would still command a tremendous price because of its then unique status. Would its grade have turned off some buyers? Perhaps... but it wouldn't have turned of that high dollar collector who has waited his whole life to find one. In any case, most modern coins are especially plentiful in all but the top grades. The premiums here are determined by the marketplace. The marketplace can represent hundreds or thousands of transactions- or in the event that the coin is especially scarce, can be determined by whatever one or a handful of people have paid for it over the past several years.