For people who are not familiar with the coin-collecting community, the terms “value” and “price” are similar in meaning. Veteran coin collectors and dealers know that the value and the price of coins are mutually exclusive. The price refers to the retail price of a coin when you buy it from a dealer. It indicates the amount of the coin that is available in the market for purchase. There are many factors that determine the price of a coin. It could be the demand of that particular coin in the market, the grade, or the rarity. Rare challenge coins have higher retail prices because they are inimitable. Custom coins are priced considerably because they are current and they don’t hold much worth in terms of material.
The value of a coin, on the other hand, refers to the amount that a dealer pays in present time to acquire a coin or the coin collection. Also known as the wholesale price, the value of the coin is often less than its retail price. When you are marketing the worth of your coin collection, you are establishing the value it holds. So whether your collection of challenge coins and custom coins is expensive or not, it still wouldn’t get the retail prices that are stated on the Red Book.
The coin-collecting community looks at prices and values broadly. Before making a purchase, dealers consider a lot of factors so they’ll know in the end that their purchase is fair. Here are some of the factors that affect the price and the value of challenge coins and custom coins today.
Grade and Condition
Coin collectors seek coins that are rare and uncirculated. This means that the coins with less scratches and are in perfectly mint state are the highly desirable coins in the market. The uncirculated coins are also more expensive because they look as if they are stored safely and taken fresh off the coining press.
Coins that have increased demands are higher in values and prices. There are different factors that affect the demand of a coin. The more people seek out a specific type of coin, the more expensive the trade gets. It was like in 2009 when the Lincoln cent was remodeled. The demand for the redesigned Lincoln cent drummed up as people started to show interest in that particular model of coin.
Mintage and Supply
Mintage refers to the quantity of the coin that the coining press produces. In some cases, the value of a coin decreases as more people hoard that particular type of coin. The quantity of a specific coin with a specific grade that is supplied to people affects its value and price. The initial mintage of a coin determines the number of supply that is available to the market.
The worth of the metal used in a coin is a huge factor in determining its value and price. Coins that are made from high-quality metals like silver and gold have higher melt value. When the price of silver decreases, the value of silver coins consequently decreases as well. Coins from the U.S. that are dated 1964 and before have higher worth because they contain 90% silver and 10% base metal.
It’s important to always be practical about the prices and values of challenge coins or military custom coins. The price of the coin when you purchase it subtly influences the value of the coin. The price and value of coins also differ depending on a lot of factors including the rise and fall in the dealer’s market. It’s wrong to have the mentality that the value of your coin should be equivalent to the price that you shell out for it.