Determinants of Values
What Determines a Coin's Value?
As an aid to making purchase decisions it is useful to be
aware of factors which determine the value of a rare coin. Here are my thoughts
on the subject:
Popularity: The more people who desire a given coin, the
more expensive it is apt to be. Pricing follows the law of supply and demand.
Among United States coins such series as large cents 1793-1857, Flying Eagle and
Indian cents 1856-1909, Lincoln cents from 1909 to date, Jefferson nickels 1938
to date, Mercury dimes 1916-1945, Washington quarters 1932 to date, Liberty
Walking half dollars 1916-1947, Morgan silver dollars 1878-1921, Peace silver
dollars 1921-1935, gold coins, and commemoratives have been high on the
popularity list in recent decades. Today the single most popular series is
probably Morgan dollars, with commemoratives coming in second. Preferences
change, and Indian cents, avidly collected in the 1960s, are not as sought after
today.
Less popular today are series such as half cents 1793-1857,
two-cent pieces 1864-1873, silver three-cent pieces 1851-1873, nickel three-cent
pieces 1865-1889, and trade dollars 1873-1885. Less popular does not mean less
desirable, and if you show me a sharp and beautiful 1793 half cent in Extremely
Fine-45 grade, I would be delighted to write a generous check for it. However,
coin for coin, a rare half cent will not bring as much money as a Morgan silver
dollar of comparable rarity, for more collectors desire Morgan dollars. In
numismatics there are exceptions to just about every rule, and sometimes obscure
coins can bring higher prices than well-publicized ones.
An 1892-S silver dollar in MS-65 grade is worth the best
part of $50,000, even though several dozen examples may exist in this grade. On
the other hand, a token issued by Steve's Coney Island, a chili parlor in
Springfield, Ohio, in 1933, and of which just two or three are known in MS-65
grade, might not find a ready buyer at $25. The reason is obvious. Thousands of
people collect Morgan silver dollars and desire a top-grade 1892-S, while no
more than a handful of individuals care about tokens issued by Springfield, Ohio
eateries.
