In this article about coin collecting prices, you will learn about all the factors and considerations that are taken into account when setting prices for collectible coins, coin collections or coin inventories.Supply and demand is a big factor when pricing collectible coins. Coin prices will decrease when inventories are not able to be moved at current prices. When demand for coins out weighs supply, of course the prices have to rise. Demand of coin inventories usually rests with collectors and investors, with dealers playing a big role in this process also. Making a profit has to be taken into consideration by the dealer of course, to cover all expenses involved, hence, buy low and sell high.
So of course, collectible coins do not have one set price level. Prices can vary every day. In general, they remain constant, but depending on what is going on in the world of coins, they can and do fluctuate. Several pricing tiers do exist though, and have to exist, in order for this profession to be possible and profitable.
Retail prices are what collectors and investors pay to the dealer for coins, and wholesale prices are what the dealers charge one another. Published Pricing Guides are referred to often by investors and collectors to assess what the going rate for any coin currently is. A forecast if you will of where they may go and where they've been, and prices for retail and wholesale transactions. Keep in mind though, this is not law. Just like a weather forecast, they are subject to change.
A coin dealers profit is usually made when they make a purchase from the public, paying less than the wholesale price. That's correct. Profits are usually generated when purchasing a coin versus when selling it. Collectors and investors may sometimes get a better deal if they need to unload their collections, avoiding the middle man altogether. This usually does not happen to frequently though, as the chances of one collector wanting another s inventory is rare indeed. So the dealer is almost a necessity.
Now the pros of purchasing collectible coins from the dealer are important, in that the dealer provides authenticity of the items being sold. The dealer also has a vast knowledge of his profession, enabling him or her to provide accurate assessments of grades and conditions of coins. They can pick up on other factors also, that less experienced may have missed, and will generally share knowledge with the customer and the public coin collector enthusiasts.
If you are in the position of wanting to move some of your coins, and when discussing coin collecting prices with your dealer, if you are at all skeptical or in doubt of the dealers assessment, by all means, bring to another dealer for a second evaluation.
When it comes to pricing coins, many factors have to be taken into consideration, including age, condition, quantity and quality. And of course, what the coin is, tops out this list. Newer coins are valued higher if their grade and condition is above average.
Usually, the older a coin, the higher the value is put to it when being scrutinized, and the grade is of less importance. Another important factor is quantity, how many were manufactured and how many are available.
When you or someone you know has a coin they would like graded and priced, the best option of course is to have it examined by a professional grader or dealer. These necessary services will usually be of no cost if you are determined to deal your coin collection, or a small fee could be asked for if you are just curious about the state of your coin collection.
Now the most important thing you can do to profit from your collection or even just one coin, is to take your time and have it assessed by a professional coin grader. Do your research and by all means, get a second and third opinion if it will make you feel better. Then, and only then can you make an informed decision about the price of your coins.
Regarding coin collecting prices, even if your collections value is pleasing or not, some coins you can't place a value on because of emotional attachment.
Source: ezinearticles.com
