Coin investments can be a great use of your time, whether you have an existing coin collection or you’re interested in getting started.
In this article, we will cover what makes a good coin investment, and why coins can have value. Keep reading to learn more!
Why Does A Coin Have Value?
The most obvious question that comes to mind is why does a coin have value and how can it be an investment?
A coin has value for three primary reasons. First, it's legal tender that has been stamped at face value.
It will always be worth the face value and even coins that have been removed from circulation will still retain the intrinsic face value.
Next, a coin, especially older coins, will have a bullion value. The bullion value is the assigned value of that time period for the precious metals that have been used in the production of the coin itself and is often of greater value than the face value itself.
And finally, a coin has a numismatic value, which is why collectors exist. This value covers various metrics of a coin, but primarily focuses on the rarity and coincidentally the condition in relation to the rarity.
How to Make A Good Coin Investment?
So if you want to make a good coin investment, you have to consider the final reason for the coin value, and that's the numismatic value, rarity, and condition.
When it comes to investment coins, the condition is the key. Most coins are graded at either circulated or mint condition.
Mint will always be of greater value than circulated, which means the better condition, the more valuable it will be.
In coin investments, grading is not a science, but there have been great advancements in the world of coin collection that can help identify the authenticity and grade of a coin that is in the realm of buy and sell.
So if you want to get your coin graded by a third party, there are companies that come to mind, such as the International Coin Certification Service and the Professional Coin Grading Service.
However, high-end coins have most likely already been graded by either of the parties, so if you're looking to buy - make sure to get documentation.
Each coin has a denomination of date, and this can be hard to find. In most cases, coins before 1950 are harder to find, and they are considered key date coins.
A key date coin in mint condition can have tremendous value. For instance, the 1911 Canadian silver dollar of the mint condition can be bought for $1000000.
This is a rather overwhelming example, but many key date coins are often sold and bought in the thousands to hundreds of thousands range.
The coin market behaves in a supply/demand efficacy; thus the more people start collecting, the harder it gets to obtain the rare coins, especially of mint condition, which leads to value increase and consequently higher sell prices.
Coins for Sale
Now that you know what makes a good coin investment, and why coins even have value - you can begin your investment journey, as well.
Start investing in a variety of coins and build your coin collection in Toronto with Century Stamps. Get in touch, and we will happily accommodate your needs at our store in Mississauga or with our online shop.