Some believe that finding a penny on the ground means you’re in luck. But it could also mean you’ve stumbled upon a secret fortune.
$2,000 Quarter? Check Your Pockets Before You Use This 2004 Coin
How To: Pocket an Extra $400 a Month With This Simple Hack
The same goes for other coins such as dimes and quarters. You could even discover a coin that is worth hundreds of thousands of dollars — or possibly more.
How can you know if a coin you find is worth more than its face value? What makes a coin rare and precious, and could you have some of these valuable coins in your possession? Let’s find out.
High Demand
Interestingly enough, there is high demand out there for rare and valuable coins. This comes heavily into play when determining the current worth of a precious penny or dear dime.
“A couple dozen of any coin sure sounds pretty rare, doesn’t it?” Joshua McMorrow-Hernandez, a numismatic expert and journalist, wrote in a blog for Gainesville Coins. “But is it all that rare if only, say, five or 10 people want an example of a coin with 20 or 30 survivors?”
You see, a rare coin is like a rare piece of fine real estate. The more interest there is in it, the more money it will go for. The golden rule of supply and demand reigns supreme — even in the valuable coin world.
Old Age
In a society where ageism is rampant, you may be gladly surprised to hear that the older the coin, the more likely it’s rare and valuable.
Mike Fuljenz, president of Universal Coin and Bullion, explained, “The age of a coin can also contribute to rarity and value as older coins were often mishandled or cleaned over time thus resulting in fewer specimens with coveted original luster and surfaces.
“Finally, an antique coin that has survived the test of time and is still easily legible and in nice condition, is unusual. This too increases a coin’s rarity and value.”
Related: If You Find a Rare ‘Doubled Die’ Penny, It Could Be Worth $1.14 Million
But Antiquity Plays Less of a Factor Than You May Think
Though antiquity can help drive up the value of a coin, it’s far from the biggest factor here; in fact, sometimes it doesn’t mean much at all!
“There are many valuable and rare ancient Roman and Greek coins, but simply because a coin is old does not automatically mean it has significant collector value,” said Donn Pearlman, spokesman for the Professional Numismatists Guild and a former member of the Board of Governors of the non-profit, 26,000-member American Numismatic Association.
“Some historic 2,000-year-old Roman bronze coins are so common and easily available that they can be purchased for as little as $25 or $50 each,” Pearlman said.
Mintage
Mintage is a critical factor in determining if a coin is rare and valuable. What does this mean?
Well, every coin has a mintage number that indicates how many examples of that exact coin were made at that origin of mintage. The lower the mintage, the higher the value of the coin (because there are less of them, and so there will be a higher demand for them).
“Low mintages often lead to lower survival rates for older coins,” Fuljenz said. “Lower mintage coins are also coveted by many collectors, which can help increase their numismatic value.”
But don’t get too hung up on mintage; it’s not the ultimate factor in what makes a coin valuable
“[Mintage] gives us a number on how many specimens may exist in the largest possible pool of a certain coin,” Mcmorrow-Hernandez wrote. “But too many collectors fixate on mintage numbers alone when they should really be more concerned about a coin’s population estimate.”
Population Estimate
This brings us to the population estimate. What is it, and how does it play a role in whether or not a coin is valuable?
This one is a tad trickier to put into simple language, but basically, population estimate is the rough number of how many of that coin type exist in all collections, including, holdings, across the marketplace and ‘wild’ in circulation.
McMorrow-Hernandez wrote this example of how population estimate impacts and shapes a coin’s value for Gainesville Coins: “We know 44.6 million 1921 Morgan dollars were struck at the Philadelphia Mint that year. The reality is that a far lower number of these coins remain today.
“Losses through theft, fire, burial and melting have reduced the numbers of available 1921 Morgan dollars to a much smaller total than records show.”
Condition
You may be surprised to learn that the condition of a coin can actually be more important than age and other factors.
This is because so few antique coins are in presentable condition, particularly if they are no longer in circulation. The good news here is that even a somewhat ‘common’ date coin can be rare and valuable — if it’s sought after and in good shape.
“For example, an uncirculated late 1800s Indian Head penny or V nickel may be worth many times the value of a circulated condition coin from the same year,” said Tony Davis, the owner of Atlanta Gold & Coin Buyers, in a blog for the site.
If you have an old coin, you can help protect its value simply by how you handle it.
“Be especially careful not to touch the face or reverse of an old well-preserved coin, as oils from your skin can tarnish the coin; thus reducing its value,” Davis wrote.
And to highlight just how important condition is, consider this:
“Tens of millions of Liberty Head design nickels were made at the United States Mint in Philadelphia from the late 1880s to early 1900s, and most of them in circulated condition may be worth only a few dollars each,” Pearlman said.
“But that same otherwise common coin [that is uncommon], in pristine mint state, uncirculated condition can be worth hundreds or even thousands of dollars.”
Design
We all know that every coin has a head side and a tail side, but the small and often nuanced details of a coin’s appearance help determine its value. These fine details may also tell a beautiful story from a long time ago, bringing in a fascination factor and upping its worth.
“The design of a coin communicates all kinds of cultural, historical and patriotic themes,” wrote McMorrow-Hernandez.
“This endearing feature of coins has been common to all peoples in recorded world history. Even the earliest representations on coins tell us something about a moment in history. Whether the design is of an emperor or indigenous fauna, it is a reflection of cultural values.”
Beauty
“Beautiful coin designs are collected more often by collectors than less desirable designs,” said Fuljenz.
“For example, a Walking Liberty half-dollar is considered more attractive than an earlier Barber or later Franklin half-dollar design. Another example would be the Saint Gaudens Double-Eagle design, which is considered by many to be one of the most beautiful coin designs ever created.”
Bullion Content
What precisely is that potentially rare and valuable coin made of? That’s what bullion content comes down to — and it really matters. A coin made from copper or other less precious metals isn’t nearly as valuable as a coin made of, say, gold, silver, platinum or palladium — all more expensive metals.
“The bullion content of gold, platinum or silver coins adds to the desirability of a collectible coin for many collectors,” Fuljenz said. ” Also, precious metal coins containing gold, silver or platinum have no sales tax in many states, but copper and nickel coins do.”
Check In With a Rare Coin Dealer for Value Estimates
At the end of the day, if you think you might have a rare coin on your hands, the best thing you can do is handle it very carefully and, from there, bring it in to be checked out by a rare coin dealer.
And remember: Never attempt to clean or even wipe a potentially rare and valuable coin.
“If you believe you have a rare coin, find a reputable coin dealer, who is honored in the industry and belongs to numismatic trade organizations, and have them review your coins with you,” Fuljenz said.
“Also, because of mishandling or a lack of knowledge, many historic older coins have been lost or melted over time and thus are less available to today’s collectors.”
More From GOBankingRates
- 4 Hidden Consequences of Ignoring Your Credit Score
- How to Get $340/Year in Cash Back -- for Things You Already Buy
- 4 Reasons You Should Be Getting Your Paycheck Early, According to An Expert
- 10 Ways to Turn Your Six-Figure Salary Into Generational Wealth
This article originally appeared on GOBankingRates.com: What Makes a Coin Valuable? Experts Say It’s These 8 Factors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
