What Determines the value of coins?

Many collectors have come across a particular coin from time to time and wondered whether they had something of great value in their possession. There are various factors influencing a coin's value. The fact that a coin does not have significant monetary value does not mean that it is not interesting or that it should not form part of your collection.

Factors Influencing Value

The value of a particular coin is influenced or determined primarily by the following four factors:
Scarcity or rarity is a major determinant of value. Generally speaking, the rarer a coin the more it is worth. Note that rarity has little to do with the age of a coin. Scarcity refers to number of coins available in the market place.

The condition of the coin will influence its value. Usually the better the condition a coin is in, the more it will be worth.

The bullion value, determined by the value of the precious metals it contains. A gold or silver coin will not normally sell for less than its melt value.

The demand for the particular coin, how many collectors want it and how badly they want it will also greatly influence coin values. Some coins that are relatively plentiful, but are more popular with collectors, may command higher prices than scarcer coins.

What's the best way to clean my coins?

In most cases, the best answer is do not clean coins. While you might think they'll look nicer if shiny, collectors prefer coins with an original appearance. Cleaning a coin may reduce its collector value by half or more.

Cleaning coins is similar to restoring works of art - they're both jobs best left to professionals who have the knowledge and experience to know when it's advisable, what techniques will work best and how to use them properly.

Never abrasively clean coins. Even wiping with a soft cloth will cause small but undesirable scratches, which will reduce the coin's value. If the surface of a coin appears to be tarnished, it is best left alone as the colour change is the result of a natural process, which collectors call toning, and this natural toning sometimes increases the value of a coin – especially when it is considered attractive.

How should I store my coins?

Environment - A relatively constant, moderate temperature and low humidity are preferable for long-term storage of coin collections. Placing packets of silica gel in the coin storage areas also helps to control atmospheric moisture.

Containers- Several types of "containers" for coins are available. Most anything will do for coins with little numismatic value, while nearly airtight holders made of inert materials are a good idea for valuable coins.  Bags, jars and boxes are adequate for pocket change and circulated bullion coins.

Paper envelopes of various sizes are sometimes used for one or more coins. Be sure to use envelopes made specifically for holding coins or, in time, your coins may change colour (natural toning) because of a reaction with sulphur or other chemicals present in the paper.

Folders and albums are sold for series and type sets and when properly used, they offer some protection from wear and handling but, if thus stored for several years, coins may develop natural toning.

Mylar-lined cardboard, often called "2x2s" but also available in other sizes, are similar to plastic flips. A coin is placed between the two halves, which are then stapled together.

Tubes are plastic containers designed to hold a number of the same size coins and they are fine for bulk storage of circulated coins and can also be used for higher-grade coins, provided the coins do not move. A distinct disadvantage is that the coins cannot be viewed without being removed from the tube.

Ask a coin dealer for advice on what would be the best option for your collection.