What Makes a Rare Coin Worth Collecting?
What makes a rare coin valuable? If not for profit, why would you want to collect coinage at all? Some people actually do enjoy collecting coins and have no particular strategy in mind. They simply enjoy the hobby and the history of it all. Unique coinage is fun to show off to guests and enjoyable to read about. That said, practically any coin collector will admit that the best coins to collect are the ones that are extremely rare.
While there might be some collectors that collect any and all mints (even modern coinage) to complete a theme, the majority of collectors want rarities. Rare coin mints are the most valuable form of coinage. In order for a coin to be perceived as a true collector’s item, make sure that it has rarity, historical value and good mint condition. Rarity means the coin has a very limited release—often less than 75 coins in existence.
Historical value means that the coin has some special significance culturally or socially. It may have been associated with a particular year or a political scene. In addition, the coin must be in near perfect condition. While some junk coins might have economic worth, they will not sell for as much as coins in perfect or near perfect condition. The more the coin is circulated, the less pure bullion it contains. This is why new releases of collectable coins are always released in a bullion version as well as a special uncirculated or collector’s edition.
You also have to consider the market demand for such rare coin mints. If you have an old coin in your possession but no one knows what it is, then it won’t have much value. There has to be a market for this type of coin. How can you tell if a coin is rare and has this historical and marketable value? It’s best to research the coins you come across. Try to search coins by year and by name. Having some understanding of bullion content and collectability will help you narrow down your search.
It always helps to consult a coin dealer who can help get you started in rare coin collecting. You can find a coin dealer online or in person. Coin collecting is not only a fun hobby to keep, but it can also lead you to a very shrewd investment opportunity. Remember that coinage is also bullion—it retains value over time. You can use coinage as a hedge against inflation and economic downturn!