AGE DOES NOT ALWAYS EQUAL VALUE
A common myth held by non-collectors is that the older the coin the more valuable it is. Nothing could be further from the truth. While many coins increase in value with age, supply and demand are the most significant factors related to their increase in value. (The metal content of a coin is, of course, another obvious factor contributing to value. It stands to reason that a gold coin is often more valuable than one comprised of copper just based on its gold value alone.)
To illustrate, many Morgan silver dollars from the 19th century are worth less than $18.00 while a 1995-W U.S. silver Eagle dollar has a current value of $2,500 and up. The difference in values between these two coins is astounding to the new collector but is a perfect example of a price based on supply and demand. In the case of many Morgan dollars, they were minted in the millions and barely circulated since consumer demand for them at the time of minting was low. As a result, many still existed in uncirculated to almost uncirculated grades in the Treasury’s vaults way up into the 1960s when the supply finally ran dry. Today, most Morgan dollar dates are in such plentiful supply that even though the coin is in high demand by collectors, many dates can be had in uncirculated grades for under $50. On the contrary, the 1995-W silver Eagle dollar was only minted for inclusion in a set containing the 1995-W gold Eagle series (including a 1/10th, 1/4, 1/2 and 1 oz. piece), in very limited supply. Demand from silver Eagle collectors, needing this specially produced coin boasting the West Point mintmark, quickly outstripped supply and the price skyrocketed.
1906 Indian 1¢ $2.00–$3.00
Good to Very Fine condition
1929 Buffalo 5¢ $1.75–$3.00
Good to Very Fine condition
Another good example of age not contributing significantly to the value of a coin can be drawn from a look at ancient coin values. While some are quite valuable, you can find offerings of “common” ancient coins from 2,000 years ago at prices ranging from $10 to $30.
Other coins often saved with the belief they are valuable because they are no longer being produced (but are actually of little demand) can be found described in the back of this book under “MYTHS.”
The best way to educate yourself on coin values is to purchase a price guide from your local coin dealer or bookstore, or to subscribe to one of the many coin periodicals. These types of books and magazines are not expensive and are very easy to understand.
A NOTE ON FOREIGN COINS
A common question asked by newcomers to the hobby is what the values of foreign coins are. It is not uncommon to uncover foreign coins in circulating pocket change or in the small cigar box that a family member set aside after vacation. While the value of foreign coinage can be difficult to determine without the proper references, for the most part, these coins do not command large premiums and are generally worth sentimental value only. It is normally very difficult to sell foreign coins in small numbers but they may be sold by the pound to dealers at $8 to $10 a pound, NOT each. The reference materials for foreign coins are often more expensive and difficult to read than the inscription on the coins. Current foreign coin pricing guides come in one to three volumes and can be priced at over $50 each. Use caution with foreign coins if you are out to make a fast dollar.
