WHAT MAKES A COIN VALUABLE?

What distinguishes a Canadian 50-cent coin from 1918 from a Canadian 50-cent coin from 1921? Simple: three years. Informative response: 1921 is far more valuable (estimated value of $249,000 USD) and rarer (it is believed that just 75 exist).

Of course, that should be evident. In addition to rarity, there are additional factors that affect a coin's value. The distinction between one coin and another might be as little as a flaw, but to coin collectors, who have access to hundreds of thousands of coins, it can have a significant impact on their prices. When looking for rare coins, coin collectors take into account elements within the field of numismatics (the study of currency) such as mintage/supply, grade/condition, toning, composition, and unusual variations/errors.

Mintage/Supply

Checking the mintage and quantity of currently available coins is the first step to determining whether a coin you have is a rare coin. The quantity of coins created is known as mintage. According to the economic theory of scarcity, when a specific coin is in abundant supply, its value is low since there are many of them available. Because of this, the majority of coins in circulation and the change in your piggybank often have a face value only. One currency that was in circulation but was removed and melted down is the 1921 50-cent coin. It was an uncommon coin because to the sharp reduction in quantity. A coin's value, however, may rise if there was a large demand for it despite its enormous supply. When a coin is a member of a set or has a unique mint mark from other coins of the same sort, this occurs.

Grade/Condition

Next to rarity, a coin's grade or condition is the most crucial consideration for determining its value. Like everything collectible, a piece in pristine condition and that has been carefully cared for is more valuable than one that has little damage. The American Numismatic Association rates the condition of coins using an adjectival scale. A general wear pattern and a loss of design features are the two main things to watch for.

• Poor (PR)
• Fair (FR)
• Pretty Good (AG)
• Good (G)
• Really Good (VG) - Original detail of 25%
• 50% of the original detail in fine (F)
• Fine (VF) - 75% of the original detail
• Fine (XF) - 95% of the original detail
• Regarding Uncirculated (AU) - Original detail of 95-99%
• 99% original detail on uncirculated (Unc.) notes
• 100% genuine detail, Mint State (MS), and no evidence of use or handling

Toning

The discoloration of the coin caused by the metal's reaction with oxygen and other airborne substances is known as toning. This is certainly a consideration when grading coins and would be regarded as coin wear. However, the tone is typically a natural wear that increases a coin's value, which appeals to certain collectors. "Natural" is the crucial term. The worth of anything drastically decreases the moment you touch it with naked hands, scratch at its surface, or even attempt to restore its original colour. (Hint: Avoid touching the surfaces of rare coins. Always use gloves to grip them at the edge.

Composition

The metal content or composition of a coin can also affect its value. However, more expensive specialty coins and bullion coins are created of precious metals like gold, silver, or platinum. The majority of coins are composed of copper, nickel, or a mix of the two metals (bimetallic coins). Coins made of precious metals are highly valuable and have a secure investment value for obvious reasons. Sometimes a coin's composition increases its rarity. For instance, the five-cent nickel coin was manufactured using tombac during World War II because Canadian nickel was set aside for the war effort. Tombac is a cheap metal, but the variety in its metal composition makes it a prized coin among collectors.

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Rare Variations/Errors

Coins become incredibly expensive due to rare variants and mistakes simply because they are uncommon and there are so few of them (again the principle of scarcity). Rare variants might include special edition coins created to honor an occasion or a specific individual, as well as differences in the mint mark or design from one year to the next. Then there are extremely uncommon variant coins like the 1936 Canadian "dot" cent struck during King George V's final year of rule. On the back of the coin, underneath the date, there was a tiny dot. There are only three known variations of the coin, and they have sold at auction for over $250,000 USD.

When there are technological challenges during the minting process, there are mistakes in the design. Some of the rarest coins are those that manage to get through in this fashion. Because one of the buffalo's legs was obliterated by excessive die polishing on the American 1937-D three-legged buffalo nickel, the piece became renowned.

You may have noticed that I didn't include age as a value-related element. Of fact, a coin's age increases its value, but that doesn't mean it will always be worth much more than its face value. If it's not an antique coin, the other qualities listed above are more important to collectors.

The collector may think of other explanations for why a coin would be so valuable. The value of a coin can be determined in part by coin collections and themes. Each collector searches for little distinctions or features such as the nation, year, mint mark, variation or limited edition coins, heritage or theme coins, personage coins, and time period coins like those produced during an empire or king's reign.

Then there are the collectors who are more concerned with the aesthetics of the piece than with its rarity or quality. We occasionally overlook the fact that the coins we hold in our hands and the yearly commemorative coins are designed by artists.

Of course, a coin's aesthetic design may have been accomplished by the way it was toned or worn down, adding to its distinctiveness. Victorian pennies that have been naturally blackened and only have the highest elevated surface displaying the copper underneath clearly show the head.

One of the most prominent reasons people collect coins is their historical value. Have you ever found a coin that was older than you and wondered where it had been before? "Art in the form of coins is not just what we study but the emotion when we hold a piece of history," said Geoffrey Cope for CoinWeek.com. I have a German mark that dates to 1871, the year that all of the German states became one country. It's an antique coin in Good (G) condition, yet millions of them were made. However, the historical importance is what is really important to me, and the sensation I get from holding a piece of history like that is worth much more to me than any amount of money.

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