How to Determine the Value of Gold Coins

Although there is a lot of buzz in the online world about gold coins these days, most people are disappointed with the returns that get from this precious metal. The main reason behind this is the lack of proper knowledge regarding the value of a coin. Several factors influence the value of gold coins. Let us briefly look at some of these factors.

Rarity

This is one of the most important determinants of coin value. The rarity of a coin depends on the limited number of coins originally minted and the surviving population. In general, the rarer a gold coin is, the higher is its value. For example, a rare 1933 Double Eagle Gold Coin was sold for $7.59 million at an auction in New York in 2002. Rare coins can be obtained from auctions, coin shows and dealers.

Grade or Condition

The condition of a coin largely influences its value. If a coin is in better condition, it is assigned a higher grade by the Professional Coin Grading Service (PCGS) and the Numismatic Guarantee Corporation (NGC). The higher the grade of a coin, the higher will be its value. On the other hand, if a coin’s condition has deteriorated over time, such as scratches on the surface, damage of any kind or wear over the years. it is assigned a lower grade by the authorities.

Quality

The quality of a coin plays an important role in determining its value. However, it is not easy to determine the quality of a coin properly and an expert’s eye is needed for this. The quality of a coin depends on many characteristics, such as flawless mint state, survival condition, strike, luster, coloration and overall eye appeal, which give it a unique presence among other coins of the same grade or design. The better the quality of a coin, the greater is its value.

Popularity

Popularity also determines a coin’s value. Some coins possess great value simply because they are more popular. For example, the St. Gaudens Double Eagle, which is considered to be an excellent work of art, is extremely popular and thus holds immense value. On the contrary, the coins that are in less demand, such as the US “pattern” coins and half-dimes, possess lower market value. Popular gold coins would therefore offer better monetary value as well.
Price

All the characteristics of a coin including rarity, condition, quality, popularity, and price when combined together provide a coin its true value.