Coin collecting is a great hobby for many people. They usually connect valuable coins that were a part of the legal tenders in the past. The value of a coin is determined by its grade and its rarity. If you come across a coin that has any historical significance or if there are any prominent minting errors, then the coins can be worth a lot.
Many people confuse the concepts of collecting and numismatics, but there are many core differences between the two. Numismatics is not a hobby but an academic study of currency (money) and coins (minted). On the other hand, coin collecting is just the collection of all coins that hold value.
Coin collectors can make significant profits if they know just what type of coins they need to collect and what factors determine the value of a coin.
To help you make a profitable decision, we will go through some of the most valuable coins. Here you will learn how to identify valuable coins and add them to your impressive collection.
A Brief History of Coin Collecting
Coins were first introduced as the legal tender in 650 B.C.E. It took several years for people to begin collecting coins and understanding their artistic worth.
The historical record of the first coin collecting instances dates back to Ancient Rome. There are traces of the treasury department and scholars cataloging coins and adding them to their collection. In history, coins were also presented as keepsakes during essential occasions to the courtiers; Emperor Augustus is known for this.
Coin collecting gained popularity among the elite during the Renaissance period. Several names like Louis XIV of France, Petrarch, Holy Roman Emperor Maximilian I, Pope Boniface VIII, and Elector Joachim II are prominent in collecting coins during the period.
Earlier the collecting of coins was not very systematic, and there was no literary element to it. However, in the 17th and 18th centuries, the collection of coins lead to the popularity of Numismatics. Moreover, coin collecting was not limited to the elite; even the middle classes started participating.
The art of coin collecting did not make its way to the U.S. until the 1850s. Soon, coin collecting from the mint facilities was trendy. In 1962, the American Numismatic and Royal Canadian Numismatic Association sponsored a convention for coin collecting. The event occurred in Detroit, Michigan, and was attended by 40,000 enthusiasts.
What Do Coin Collectors Look for In a Valuable Coin?
Condition
The condition of the coin is a significant factor that helps determine the value of a coin. If the coin is in mint condition, it will be more valuable. Wears and tears can reduce the price.
The highest valued coins are the ones that never made it to circulation. Such coins are produced but removed from circulation for preservation.
Mint Marks
The mint marks are marks from where the coins were minted. S, D, and P are mint marks easily found on regular coins. However, a W mint mark is specifically on the coins that were minted in West Point mint. The rest of the mints are in Philadelphia, Denver, and Sans Francisco.
Commemorative and bullion coins often host the W mark, which adds more to these coins' value. Most popular bullion coins include the American Eagles and the Buffalos. They make great options for collections and can be precious options.
Mintage
The numbers of copies have a significant impact on the value of the coin. The fewer copies there are, the higher the coin's value. This is also called the mintage.
Meltdown Value
The meltdown value of a coin illustrates the content of precious metal in a coin that is found after the coin is melted.
If the coins have a high content of valuable metals such as silver and gold, they will be more valuable. Bullion coins are usually made of precious metals, and the content can go up to 97.1%. This makes them very profitable, and the value only increases with time.
Mint Error Coins
Interestingly mint error coins are precious and often don't go into circulation. This makes these coins even more valuable. These errors are often a result of a mistake in the minting process or if the equipment is not in the best condition.
5 Valuable Coins in Circulation
1. 1913 Liberty Head V Nickel
- Numismatic Value: $3.7–$5 million
- Mint Mark: No mint mark
- Face Value: $0.05
- Total Produced: Unknown
- Silver Content: 0%
1913 Liberty Head Nickel:
This limited-edition American five-cent coin is unauthorized by the United States Mint. Because of this, they are very popular with American numismatics.
At present, there are only five coins available.
- Sold in 1972 for $100,000
- Sold in 1996 for $ 1 million
- Sold in 2010 for $3.7 million
The coin is currently priced at $5 million.
2. 1794 Flowing Hair Dollar
- Numismatic Value: $75,000–$825,000
- Mint Mark: No mint mark
- Face Value: $1
- Total Produced: Approximately 2,000
- Silver Content: 90%
- Silver Melt Value: $21.53
1794 Flowing Hair Dollar:
This was the first-ever dollar by the U.S. government. Only 1,758 dollars were issued and are considered to be very valuable. It is essential to verify the certification, so you only get the original. Their value is typical $75,000, but it can go up to $800,000.
3. 1933 Indian Head Gold Eagle
- Mint Mark: No mint mark
- Current Numismatic Value: $2,000–$600,000
- Face Value: $10
- Gold Content: 90%
- Gold Melt Value: $915.72
- Total Produced: Approximately 312,000
Indian Head Gold Eagle:
This 10 dollar was minted between 1907 and 1933. Augustus Saint Gaudens was the designer, and the dollar was very popular. No more coins were minted after 1933. Many of these coins were melted after President Roosevelt prohibited the private ownership of gold.
These coins are valued at $2,200, but collectors have even paid up to $600,000.
4. 1893 Morgan Silver Dollar
- Numismatic Value: $3000–$400,000
- Mint Mark: S
- Face Value: $1
- Total Produced: Approximately 100,000
- Silver Content: 90%
- Silver Melt Value: $21.53
Morgan Silver Dollar remains:
This coin is scarce, and only 100,000 existed. Many of these coins were also melted; therefore, they are rarer. The coin's value is $4,500, but it sold for as much as $414,000.
5. 1927 St Gaudens Double Eagle
- Numismatic Value: $1800 – $3000
- Mint Mark: D
- Face Value: $2
- Total Produced: Approximately 180,000
- Gold Content: 90%
- Gold Melt Value: $1834.28
1927 D St Gaudens Double Eagle:
These are among the most valuable gold coins in the U.S. The Philadelphia Mint produced them, but there are no mint marks. There is one troy ounce of gold in every coin. The coins' value can go as high as $3000 or as low as $1800.
How Can You Value, Store, and Protect Your Coin Collection?
You may have a valuable coin collection. For the upkeep of this collection, it is essential that you take care of it the right way and protect it. You must keep them the same from any calamities, being stolen, lost, or getting ruined in the fire.
Do not handle valuable coins without washing your hands. Hold the coin on the edges to avoid damaging the face of the coin with things such as sweat and other contaminations.
Use a soft pad to handle them, so they don't damage when you drop them. Keep the coins safely in controlled environments, so extraneous factors don't damage them.
Do not make the mistake of removing the encapsulation of the coin grading service. Removing it may decrease its value. You must keep them safely in exceptional cases or albums designed for them if you remove them.
Insuring your collection is a great way to safeguard them. Choose an insurer that protects against market changes and other threats such as theft and damage.
Do not be very public with your coin collection and stay anonymous. You can join coin collecting club meetings and talk about your collection safely.
Conclusion
If you know what factors affect the value of a coin, you will make better decisions when it comes to collecting them. The coin's value does not remain the same and is subject to change over time. This is why it is best to get your hands on coins that have a stable value and are in demand by collectors. These coins are profitable, can be a perfect addition to your coin collection, and even make a significant investment.
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