Your coin collection can be thought of as an investment. In fact, when people pass these down to relatives, it’s oftentimes surprising how much they’re actually worth. Your collection’s value can be kept track of using some fairly simple tools. You’ll need to keep apprised of what’s going on in the bullion markets, for one, if you have coins made of precious metals in your collection. If you have rare coins, you’ll need to keep informed about the world of coin collectors and how various coins are priced at any given moment.
Your coin collection can soar in value if the bullion markets become bullish. To calculate the amount of bullion in your collection, you first need to know the purity of your coins. Most gold coins are alloyed with other metals. Silver coins are generally alloyed, as well. The alloy metal will usually be copper or some other base metal that won’t increase the value of the coin. The market price of gold and silver are based on one troy ounce of .999 fine bullion. If you’re bullion is less fine than this, you’ll have to calculate that into the price, which you determine by multiplying the mass of your metal by the spot price.
The numismatic value of your coin collection is much harder to assess. If you’ve inherited a collection with little documentation to go with it, you may want to have your coins examined by an expert numismatist. These numismatists usually work for companies that provide certification services. You’ll have to have rare coins certified before you’ll be able to sell them for a reliable price. Without certification, there’s no way for the buyer to know for sure if the coin is real. There are many businesses that perform this service.
If your coin collection is principally about investment, you can simplify it by purchasing coins that are rather common. This way, the numismatic value is usually low and it doesn’t take long before you’re profiting on the coin relative to your purchase price. Having coins that have real numismatic value, however, can be very profitable. While there’s no spot price for numismatic value, collectors are sometimes willing to pay very high prices for a particularly rare coin that’s in good condition. If you have such a coin, be sure to have it certified and encased in a slab to protect it.