The value of coins are determined through a variety of different methods. Some of the basics are the condition, the rarity, and the type of metal (gold, silver, bronze), and the year it was minted. One other important factor is the demand for such a coin the higher the demand the more valuable it can be.

The condition of a coin is vital to its value, the nicer the coin the more valuable. Several professional grading companies for a fee can grade the condition of a coin based on a scale from 1 to 70. One such company is the Numismatic Guaranty Corp (NGC). A professionally graded coin can range from P-1 poor to as high as MS-70 meaning mint state; the highest grade a coin can receive.

The rarity of a coin speaks for its self; the fewer number of coins minted the more value they will command in the market. To give you an idea of the enormous amount of coins minted each year. Let’s look back to the year 1900 were there about 67 Million pennies minted in the US, and that may sound like a lot, but in the year 2000, Just one of the three US mints made over 5 ½ billion pennies.

The value of a coin is also based on the material it is made from. A five dollar gold piece is going to be worth more than a five dollar silver piece if you only went by the content of the material. Again please keep in mind that is not the only factor involved, in fact a one dollar silver piece could be worth more than a 5 dollar gold piece if you take a modern day five dollar gold piece (1/20oz of gold worth 150.00) and compare it to a rare one dollar silver piece the silver one could be worth thousands of dollars.

The value of rare coins and the value of gold coins will often change on a yearly basis depending on the market forces.