Numismatists are the ones who collect especially old and rare coins as a hobby and keep them as their prized possession.
As a fact of matter rarity is one of the most important factors in establishing value of a coin.
Since, it is not easy to make sure whether old or worn out looking coin is original or fake, enthusiastic numismatists prefer to buy rare coins from government approved business bureaus dealing in rare coins & bullion.
These agencies for ancient rare coins, investigate before certifying and grading the coin laying strict emphasis on eye appeal, value, and rarity.
Factors that determine rarity of coins
Rarity is certainly a dominant factor for value of rare coins and definitely adds to coin’s appeal.
Other factors that place coins in category of rare coins and determine their value and price include:
· Survival Rate and Surviving Population
· Grade and Condition
· Stock availability with dealers.
It refers to number of coins produced by mint for a given issue. Coins with low mintages may be classified as rare coins.
Mintage is a major determinant of value of rare coins as low mintages of coins are usually scarce in all grades.
Survival Rate and Surviving Population
Often, some coins are removed or disappear from circulation because of variety of reasons.
More often than not, coins are recalled by government due to damage, over worn or to be replaced with some other metal.
Coins may also be melted by certain people due to intrinsic metal value exceeding the face value of coin causing scarcity of coin or never return to circulation.
The drastic fall in surviving population of many coins adds those in the class of rare coins which leaves major influence on price of such coins.
Grading and Condition
The value of rare coins is graded considering its numismatic value. The grade of rare coins depends upon their aesthetics, visual appeal, history and rarity.
Certain coins became popular which generate interest for coin collection among numismatists. This invariably increases demand of coin especially rare coins.
Sometimes, redesigning coins and low mintages also arouse interest in people to collect that particular coin.
Similarly, when demand of rare coins soars, value of those coins also surges up.
Stock availability with dealers
Value of rare coins is influenced by the stock inventory available with dealer and demand. Increased demand and scanty stocks fetches more money for dealers.
Similarly, sellers of rare coins in such situations can get much better value for their rare coin.