| Coin and paper money values are based on a combination of
rarity, grade and collector demand. Several factors that affect
the value of a coin are :
1. Rarity
This is an important consideration. In general, the rarer a coin
is, the higher its value will be. However not all rare coins are
valuable. There are some series in which rarities can be
purchased for a few hundreds dollars or even less.
2. Popularity
Coins in popular series such as one-cent pieces, silver dollars,
and commemoratives (among many others) will sell for more than
coins in a series collected by a few (such as streetcar tokens).
3. Grade
The condition or grade of a coin is important. Grading is a
system by which one can describe the present condition of a coin
in comparison to it's condition at the moment of manufacture.
A coin in Uncirculated or Mint State is worth more than one of
the same variety in a worn grade such a Good or Fine. Carefully
preserved Proof coins (with mirrorlike surfaces especially made
for collectors) are also valuable. Coins are often graded on a
numerical scale from 1 (worn nearly smooth) to 70 (perfect). A
grade such as MS-65 (Mint State 65) represents a superb quality
Uncirculated piece.
The lowest grade is Poor-1: A coin so worn coin that it is
almost unidentifiable. It is not considered collectible except
for extremely rare issues.
4. Market
The coin market varies and sometimes moves in cyclical patterns.
This affects price and demand.
5. Other
Other considerations contributing to value include the beauty of
the design, a coin's historical significance, and, in some
instances, its bullion or metallic value. Curiously, age is not
particularly important. There are United States coins issued
within the past 50 years that are worth thousands of dollars,
and there are 2000-year-old ancient Roman coins worth less than
$10.
Numismatists (coin collectors) today, "generally" collect items
in three main areas of interest. The areas most collected today
are Ancient Coins, mostly of Greek or Roman origin, Medieval or
hammered coinage (a.d. 476-1453), Modern era.
Leslie Lee
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