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Got Coin? It’s got value!
Our company regularly puts on coin and currency auctions. In fact, we’ve got a rather nice one coming up in November. At these auctions we sell from the rarest to the most common coins. Some of our highlights include a 1795 Flowing Hair Half Dime for $30,800, a 1879 Liberty Seated Half Dollar for $28,000, a 1907 St. Gaudens $20 Gold Coin for $22,275, and many more. You might be amazed to know you might have a valuable coin, and just not know it. Intrigued? Interested in finding out how to determine if you’re sitting on a valuable coin? Here is a quick lesson.
The value of a coin is based on a simple math problem. F+I+N. The Face value of a coin plus the Intrinsic value of the metal, plus the Numismatic (or collector) value of the coin. If you know those three components of your coin, you can determine the value of any coin. Let’s look at each of three components, and determine the value of a sample coin. It’s a coin that was just consigned to us for sale at our upcoming auction. It’s a 1794 Flowing Hair Half Dollar.
Face Value
The face value of a coin is fairly simple to determine. Simply put it’s the value of the coin as determined by the issuing entity (most likely a government), in our case the US Government. Our example coin’s face value is $0.50 because it is a half dollar.
Intrinsic Value
Every coin is made up of some sort of substance. In the United States coins have predominantly been made of a mixture of metals. In some countries, Germany for example in the 1920s, the currency inflated so fast, that coins were made out of clay. With the year of mint, and the type of coin, you’ll be able to determine what the coin was made of. I like to use the website CoinFacts.com to determine information about metal content. Our example coin is made of the following metals: 89.2% Silver, and 10.8% Copper. The total coin at the time of minting weighed 208 grams (± 13.5 grams). As a result we do some math to determine the amount of silver (185.5 grams ± 12 grams) and the amount of copper (22.5 grams ± 1.5 grams). Now, let’s determine the value of each metal. I like to use the website Kitco to determine the spot prices of metal. Silver closed today at $10.05 per troy ounce. A little more math, there are ~31.10 grams in a troy ounce. So 185.5 grams of silver is ~5.95 troy ounces or $59.80 in silver. Now, the copper. Copper traded last at 1.9007 per pound. A little more math, there are 453.59 grams in a pound. So 22.5 grams of copper is ~0.05 pounds or $0.10 in copper. Add the two figures together, and you get an intrinsic value of $59.90.
Numismatic Value
This is a bit harder to determine. The numismatic (or collector) value of a coin is determined by the number of coins originally minted, the number believed to remain in existence, and the condition of the coin. We can find original mint numbers from CoinFacts.com. In our example, there were 23,464 coins struck and all were made for circulation. A coin also can be struck as a proof by using special dies, and special striking (often two times), the end result being a very lustery detailed coin. You can obtain population reports from coin grading services which will provide you with an idea of the scarcity of a coin. The final part to the numismatic value is the condition of the coin. Coins are typically graded on the Sheldon Scale of Grading (1 being the poorest to 70 being mint). There are numerous books that assist in determining the grade of a coin as well as numerous grading services. We often grade coins in house for our use to determine the value of a coin, and then send it for a professional grade if warranted. In our example, we initially graded the coin in house. We net graded (that is we graded the obverse (front) and the reverse separately and then averaged the grade) the coin at a VG10 (obverse grade of VG8 and a reverse grade of F12). With the grade we can go to a price guide (I like the PCGS price guide) and find our coin to determine an approximate value. Using our example coin, we see the price for a G4 (lower grade than our net of VG10) is $5,750.00, and the price for a F12 (higher grade than our net of VG10) is $17,000.00. Based on this information, we decided the coin was worth the investment to have it graded (cost for a two-day turnaround is close to $100.00 for one coin of this value). If the coin does grade as we expect, the coin should fetch around $12,000.00.
Final Value of Coin
So, let’s add the parts of the value to determine the value of the coin. Our example coin was a 1794 Flowing Hair Half Dollar with an anticipated net grade of VG10. Face Value $0.50, Intrinsic Value $59.90, Numismatic Value $12,000.00. This results in a total value of approximately $12,060.40.
Now, it’s easy to say, ohh that was a rare, old coin. It doesn’t take long to browse through the price guides to realize that there are many valuable coins that are current issue. 2008 Lincoln Cents are worth $4 each in mint condition. A 1999 Lincoln Cent with a wide space between the A & M is worth around $300. A 2005-D Speared Bison Nickel is worth $300. And, the list goes on. Maybe you’ve got a valuable coin tucked away, or maybe you’ve got one in your pocket. We recently found a 1984 Lincoln Cent worth close to $150 that was in a container filled with regular circulated pennies. You never know what you’ve got until you look!
If you’re interested in me taking a look at your collection, or an individual coin, feel free to contact me. I’d be glad to assist you in anyway I can. Also, if you have any questions, or would like clarification, let me know. Happy coin hunting!