Coin Values

 

I recently received an email from a reader asking me what I think affects coin values most.  This is a tough thing to put a definitive answer on because there are many contributing factors we need to consider when working to determine what affects on old coin values.  I am going to leave comments open on this post so you can also suggest what affects a coins value most.

Now, at the time of this original writing (July 2012), we are five plus years into the recession.  We have seen gold coin values sky rocket as a result of investors flocking to gold and precious metals as a safe haven from equities and other investing instruments.  This has affected quite positively any coins value made of these precious metals regardless of the minting country, relative artistic value of the coin, or the coins condition.  Quite simply it’s worth its weight in the least in the metal the coin was minted in.

In hard times precious metals fair the best.  Coin values have historically increased when concern for national economic strength is highest.  This is true because there is only so much of the metal available that goes into a coin thus increasing the coins value.  Since 1999 gold has risen per troy ounce from $250 to over $1,700.  The math here is simple as it relates to gold coin values; they have increased in tandem with the price of the metal.

Now of course into 2014 old coin values, particularly gold coins, have fallen off their high rather dramatically.  The same is now true for silver old coin values as the perceived value fo the metal and the confidence in the metals ability to back paper and any given economy.


Now let’s take a look at silver coins value over the same time period as gold.  Since 1999 silver has risen per troy ounce from $5 to over $48 (and of course we’ve seen that back off the highs of late).  As we have seen in gold coin values the same is true of silver coin values.  Old coin values, in my opinion and unless extremely rare due to scarcity, mint oddities, etc., are pretty much worth their weight in metal and any value a person may but on the old coin values at any given time.

Lastly, what about the value of the coins rarity, artistic value, and do these as well as any factors contribute to a coins value?  When I think of specific coins of mint oddity, or limited run, “yes” of course there is value to be considered here however when considering volume and old coin values over all it is pretty clear, to me anyway, that the coins value is most affected by its content particularly a coins value in gold or silver.

In closing, and to answer the question from my perspective, what affects coin values most is their precious metal content.  No oddities or limited run coins have matched the velocity and value changes that gold and silver coin values have.  Old coin values will continue to fluctuate and lately we have seen then move strongly to the downside.  Keep the faith however; old coin values change often and those of us that collect for investments will look to buy on the lows and sell on the highs.

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July 21, 2012   Posted in: Value of old coins

2 Responses

  1. Jack - August 12, 2012

    Coin values have had positive pressure on them for some time now.  I am a modest collector of liberty walking dollars and I have seen my collection over all increase sharply on a coin by coin basis each year for the past five years.  Good post and thanks for keeping them short.  I check back here once and a while for updated links to coin values.
    Jack

  2. Molly - October 8, 2012

    The 1989 WTC MS69 Silver Eagle appears to be the only $1 eagle that will ever show a polotapiun that is on its own in the PCGS polotapiun website. All other $1 eagles were included in the mass polotapiun numbers for the same year as an ordinary silver eagle NOT recovered at Ground Zero inside the Iron Mountain Vault. The 1989 WTC MS69 $1 Eagle may someday have a price on the PCGS price guide since it is a separate listed coin. PCGS states that they have not priced the coin yet due to to much variation in the average sells price for this coin. But, what do you expect from a coin that has only 65 examples, they are worth as much as their HIGH Demand and True Rarity says they are and the few proud owners will not be willing to part with the coin knowing that it may cost them a second mortgage later to own another one. This Coin is going to be exciting to watch. It is Truly a part of our American History!

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