The market value of any coin—the price a dealer can actually receive for it—is determined by supply and demand. Some exotic coins are quite scarce, but their prices remain low because there is no great demand for them. Yet many fairly recent British, Canadian, and American coins, as well as coins from other times and places, are more available, but their prices are relatively high because there are far more numismatists who collect them. As with any collectable, the condition of a coin is a major factor in determining its value.
When deciding on the purchase of expensive coins or notes, collectors must do the same kind of research necessary for any other major investment. The collector must assess the current market value of the item, its current resale value, and its potential appreciation. Above all, the collector must be knowledgeable enough to know if a coin is genuine and properly graded (assessed as to condition) or must have confidence that the dealer does.
Coin catalogs give some idea of the current prices for various coins. However, dealer advertisements in coin magazines and newspapers are usually more up to date. Coin auctions are an important feature of major coin collecting conventions. Catalogs of the items to be sold are issued ahead of time, and lists of the prices that the items sold for can often be obtained afterward. Coin conventions usually have tables where numismatists can consider the offerings of many dealers, and coin shops also often provide a wide selection. Web sites are a good source for information on the value and availability of coins.
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