How does the price of a coin form?

Many investors want the coins they have purchased to increase in price. The secondary coin market offers a price different from the original. Why is this happening? The formation of the future price of the coin is not an exact science. However, there are a number of factors that will help indicate how the price of the coin will change over time.

Offer

In most cases, rare coins will cost more than more affordable, with a large circulation. Therefore, when buying a coin, you need to view information about its circulation or the maximum amount that is planned for release. However, in order to determine the true rarity of the coin, it is necessary to additionally find out how many coins are available on the market.

Demand

Demand is the main factor raising the price of coins. It can significantly affect the cost of rare specimens.

Suppose 10 thousand buyers want to purchase a specific version of the coin. It is known that 5 copies are offered for sale on the market. The price of the coin in the secondary market will increase in proportion to the number of investors and collectors who want to purchase it and the degree of competition - the intensity of the growth in the number of buyers.

Imagine the opposite situation: the supply on the market is 10 thousand coins, and demand comes from 50 buyers. In this case, the demand for the coin is limited, which will not affect a significant increase in its price.

"Age" of the coin

At first glance, the older the coin, the more expensive it is. However, it should be known that the age of the coin is not always a guarantee of a higher price. For example, many old coins can be purchased at a lower price than modern ones. Ancient coins are rare, but they do not always have a good condition.

Collectors attach importance to the age of the coin. Time plays a crucial role in some cases. It is important to study the yield of the coin in retrospect, which is an indicator of its future price. If the value of the coin has grown over time, then there is demand for it. The price may vary over the years. It happens that for some time the value of the coin does not change, and after 15 or 25 years, interest from collectors increases due to the relevance of the theme or design of a particular version.

Coin Status

We are talking about wear and tear, physical damage, color changes. The better the state of the coin, the more it costs.

Products in ideal condition are usually more expensive than those with small damage. Collectors interested in a certain rare specimen are not so easy to find a coin in good condition over time. In this case, demand will increase the price of even a coin not in perfect condition.

Aesthetic characteristics of the coin

A coin, like a painting or sculpture, is an object of collection. Therefore, many collectors appreciate specimens with an attractive and unique design, different shapes and sizes. Customers want to have the best coin sample with a luxurious and distinct design.

However, there is the opposite situation. The value of the coin may increase if it is a rare variety or with an error in minting.

Precious metal content

There are two types of coin buyers: investment-oriented or creating private collections. The former are looking for coins that will eventually increase in price in order to receive income at resale. The second evaluate the rarity and decoration of coins.

Gold, platinum and silver are expensive metals, so coins that are minted from them are considered products that bring passive income. The latter arises due to the growth of precious metal quotes, as well as the presence of "internal value."