This simple question–what makes my coin valuable?–requires numismatic knowledge. New hobbyists typically ask, “What’s my coin worth?” (The value of the hobby is the hobby, not the value.) But coins do have investment value, and every collector should know how to tell which ones are worth keeping, spending, buying or selling.
Although there are other factors, here are 7 top reasons your coins may be valuable.
The Metal
This would seem an obvious answer. Gold is more valuable than silver. Silver is more valuable than nickel. Nickel is more valuable than copper. Copper is more valuable than zinc. This is why the U.S. Mint continually changes metal content of coins when the metal exceeds the value of the issue. For instance, a nickel’s melt value (and you can’t do that, per U.S. law) is worth a dime. Pre-1982 cents are worth 2-4 cents as scrap metal. The website, Coinflation, gives melt values based on metal content. One of my war nickels (pictured above), with 35% silver, has a melt value of $1.57. The patina, however, dramatically increases the value of this particular coin.
The Mintage
The smaller production of a coin typically increases value. For instance, the 1893-S Morgan, with 100,000 minted, is considered one of the rarest in the series, bringing fantastic prices, even for low grade examples, such as Good 4, worth $3,900 retail. The 1881-S with a mintage of 27 million at Good 4 (no flaws) is worth a little more than its silver melt, or about $35. Some coins with reasonable mintages are valuable because so many of that year and mint have been melted under the dictates of the Pittman Act of 1918. Some 270 million Morgan silver dollars were cast in the melting pot. So at least with Morgans, the initial print production might be high … but the survival rate, low. This requires knowledge of each year rather than just the Sheldon 1-70 scale.
Key dates often are based on mintages, including rare errors like the 1955 double die obverse cent, about 24,000 of which are thought to have left the mint. That makes it rare and valuable. Here is a scale to help you identify what you should be looking for when adding to your collection.
The Grade
The higher the grade on the Sheldon 70 scale, the higher the value. For instance, the aforementioned 1893-S and 1881-S Morgan dollars at Good 4 continue to rise in value as the numbers increase for those issues. An MS65 1893-S is worth $775,000. An MS65 1881-S is worth $215.
The Condition
Some coins, for one reason or another, went into circulation with few saved and many melted. A perfect example is the 1884-S Morgan dollar. A VF40 example is worth $135. An MS65, $295,000. These are called condition rarities.
Other coins are valuable because the typical strike is weak and the device not well defined. So a stronger strike with these coins brings premiums. An example is the 1945 dime with full bands. An MS65 example without full bands is worth $45. With full bands, $19,000.
The Patina
At one time about 30 or so years ago, coins with rainbow toning were worth less than clear metal with no toning. Now the market for toned coins has skyrocketed with natural colors bringing multiples of what the coin is really worth. A 1964 Kennedy half dollar at MS66 is worth about $90. With this patina, from my collection, hundreds more.
The Variety
Some years and mint marks have different die varieties. The most popular/valuable ones are listed in Red Books and other resources, such as PCGS CoinFacts. Here’s an example that most collectors of Mercury dimes know: 1945-S regular strike, worth $44 dollars at MS65, and 1945-S micro S, worth $135 at the same grade. Add full bands to the latter, and you have a $900 coin.
The Error
One of the most popular errors is the three-legged 1937-D Buffalo nickel. At MS65, a regular strike is worth $105. The error at the same grade is worth $32,500. Because errors are so valuable, scammers try to recreate them with doctored coins. The three-legged nickel is one of the most altered coins. But there usually is a device that is a telltale sign. See this post about how to identify an authentic three-legged 1937-D nickel.
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