Rarity and the Establishment of Rare Coin Value

Aside from the grade, there are two other things that affect the value of a coin: the rarity of the piece, and the establishment of the value. The rarity of the coin is the most important part of the value because even if a coin is not very well-preserved, it might still have a good value because of a scarce supply of the coin. If the coin has a low survival rating because it is very old, then you may have a coin which is valuable despite its appearance.

Establishing Absolute Rarity

When you are considering a rare coin for part of your collection, you should consider two factors. First, you need to determine the rarity of the coin. An Absolute rarity is one which is in extremely limited supply. For example the 1822 Half-Eagle has a rarity scale of 8. There are estimated to be only 3 in existence. This type of rarity is very difficult to find. If you think that you have found an Absolute rarity of this type, you should remain skeptical because chances are it is a counterfeit. Finding a coin like this is so rare that you are not likely to ever see one in your lifetime.

Establishing Condition Rarity

There is another type of rare coin that is less extreme. This is known as a Condition rarity. It is valuable because of the appearance of the coin, rather than the mint. You may be offered a Morgan Dollar, which is usually valued around $200. In the Near Perfect (MS-68 or above) condition there are very few of these coins. Recently, these coins have sold for hundreds of dollars. There are more of these coins available, but you are still unlikely to be able to find it because collectors can search for years before finding one.

Establishing Value

The main condition which takes these rarity factors and gives them a high value is the market demand. Even if a coin is very rare, it will be worth nothing if there is no interest. Market value, is therefore, the other factor that you need to consider when looking to add rare coins to your collection. Although coin value is not initiated by the market, it certainly helps to push certain coins into the forefront.

The rarity of a particular coin may not be enough to convince people to spend a lot of money on purchasing it. In fact, some coins may fall in and out of favor as collectors turn their attention to other coins. For example, many collectors seek to have a Three Dollar gold piece. These coins are sought out simply because the coin that has a lot of value. In this case, the condition of the coin is not as important as the coin itself.

The market demand that has the strongest influence on coin value. You will want to know how to determine the condition and value of your coins in order to properly establish their worth.

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