Wednesday, 6 August 2014

How Collectors Rate The Most Valuable Coins

By Jessica Drury


Since the beginning of time people have enjoyed hoarding things. Many people develop a passion for collecting specific objects and they will go to great lengths to enlarge their collections. There is no limit to the types of objects people like to collect. In fact, some collections are rather bizarre. Collecting minted tender is a particularly popular and potentially even profitable hobby. Some of the most valuable coins fetch extremely high prices.

Some collectors choose this hobby as a way in which to earn large profits. These collectors are normally extremely knowledgeable about coins worth money and it is indeed possible to make handsome profits. Others simply enjoy the act of collecting a specific item, in this case minted tender. There are also accidental collectors that inherited collections and then became enamored with the hobby themselves.

Many collectors subscribe to a specific theme. Some will only collect coins made from a very specific metal. Others will focus on a specific country or period. Yet others will only want tender that has been issued by a specific mint and there are even collectors that will not want a tender that does not feature a very special theme, such as animals, plants or the faces of heads of state.

The value of coins is determined, to a large degree, by supply and demand. However, tender that is in mint condition is often many times as valuable as samples that are in poor condition. The American Numismatic Association uses a scale ranging from one to seventy to rate the condition of a specific sample, with a rating of seventy describing a sample in perfect condition.

The very first tender that was minted by the newly established United States mint was the Flowing Hair Dollar, designed by Robert Scot. This tender was minted for just 2 years, during 1794 and 1795. After that the Draped Bust Dollar followed. The Flowing Hair Dollar, however, remains the most expensive coin in modern times. One was sold in 2013 for a price in excess of ten million US dollars.

In 1933 the US minted half a million specimens of the Double Eagle. This tender was never distributed and all but two of them were melted again. This makes it the rarest tender in the world. One specimen is part of the US National Numismatic collection and the other belongs to a private collector who paid more than seven and a half million US dollars for it on open auction.

This hobby can become very expensive. It is vital to belong to a club where experienced members can impart valuable advice. There are also numerous sites on the internet that is certainly worth perusing. Before making any purchases, it is deemed wise to first settle upon a theme. Purchases should only be made from respected experts in the field of numismatics. Valuable collections should be insured and kept in a safe place.

Many collectors of minted tender build their collections over many years and then pass it on to a loved one. Some collections are extremely valuable and it is imperative to make sure that the collection is insured and properly safeguarded. Others simply collect tender because they enjoy it and they like to learn more about the various pieces that they possess.




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