Quote:
well sometime's it has to do with what they are made up of.
Hey Mossy - that's a good point, but that doesn't refer specifically to their numismatic value. That is generally referred to as bullion value - the value of the silver in the coin.
jawmins - to answer your question in a different way (though shadow did an excellent job)
Numismatic value refers to the collectibility of the coin for non-bullion reasons. Numismatic investments shouldn't be confused with bullion investments, even though bullion investments can be coins. Bullion investments depend on the precious metals markets - how much silver or gold (or whatever metal) is worth. Generally speaking, the markets are more volatile than the rare coin market, which is determined by by the coin collector base.
Sometimes they do cross over - I have both certainly.
The coin market can be and is effected by the bullion market, however more numismatic investments - coins that are scarce or rare enough that they're not as effected by the bullion market, are really a different thing.
In other words, if you have a quarter that grades "good" or G-4 (have a look at
http://www.pcgs.com/photograde to help determine your quarter's grade) that is primarily made of silver (pre-1964), your quarter is GENERALLY less of a numismatic investment and rather more of a bullion investment. On the other hand, if your quarter grades "mint state" or MS-68, your quarter is less of bullion investment and more of a numismatic investment because there are relatively few remaining in that condition.
Collectors want the best that they can get, and they often enjoy creating complete sets. So if they don't have the year you have and your coin is in excellent condition, there are probably a lot of collectors looking for your coin - and keeping the price up.
If on the other hand you have a quarter that is easily available (in a lower grade, was created in high numbers - "high mintage", and most of them have survived the years), a lot of people can get one, so the price is lower.
An excellent free resource (online) is ngccoin.com - you can see things like mintage numbers and rough values for coins there. If you're going to get at all serious about coin collecting (and if you are already, forgive me!) a good idea is to get a copy of the "
Red Book", shorthand for
A Guidebook of United States Coins available from
Amazon or at any good book store.
If you're looking to spend little on books and more on coins, you can avoid the books, however if you want to spend a little more on books, you'll end up spending less for better coins. ;)
The market price of numismatic (less bullion value) coins doesn't change drastically from year to year, so for most coins it's fine to get a book that's a year or two out of date. They're a lot cheaper, and the
Red Book will give you a *relative* idea of coin values for certain series based on grade, year, and mint mark.
These books don't determine the value of the coins, they are a reflection of the collector market. Most often they are not exactly right, but they give you an idea.
Also, I should note that if you sell your coins to a collector, you will probably get a different offer than if you take them to a coin shop, where the owner is in business to make a profit - a completely fair and equitable thing to do in a capitalist economy! You can't be in "business" to break even. The more dealers you meet, the more you'll learn to pick the good ones from the better ones.
It looks like I just spewed a lot of information at you - but I hope you'll find it helpful!
Posted 09/20/2011 09:08 am
