How Much Should You Pay for a Coin?

So, have you found the perfect coin for your collection? The right grade, the right look, the right everything? Unfortunately, the price tag makes you stop and ask yourself, “How much should I pay for a coin?” Determining how much to pay is an imprecise science. It is among the most challenging skills to master in numismatics. The differences in how people price coins allow many to make a living. In the modern age, we have many ways to evaluate a coin, but not all are worth looking at. Mispricing coins can leave you overpaying for bad pieces and underselling on nice ones. Knowing where to find information and using that information properly can propel your collection further than those of hobbyists who indiscriminately spend.

Printed Guides

Books and printed magazines offer organized price lists for every coin in almost every grade. They are convenient and quick and are among the most trusted and tested ways to price. Greysheet is the most accepted and accurate printed guide. Greysheet’s figures are typically the only numbers people care about for most coins. “What is sheet?” is a common phrase on a show’s bourse (or selling) floor or at a coin-shop counter. One of the most bizarre aspects of price guides is that collectors rarely follow them to a tee. People often use a percent below or above the listed value. It takes experience to determine which series sell above or below these values.

The unfortunate byproduct of printed materials is that they are fundamentally slow and provide values in a vacuum. There is an evident range of prices for the same coin of the same grade, so what makes a coin worth less, equal to, or above the printed value? Additionally, the coin market can shift significantly in the time it takes to change a price, print, and ship the guide to you.

Books and printed magazines offer price lists for every coin in almost every grade.

Auction Prices Realized

My favorite source of information is auction prices realized (APRs). APRs are free on the Internet and offer long histories of prices at least one person was willing to pay for a particular coin. These usually come with photos, or at least a description, of the coin that allows you to determine why it sold for notably less or more than others of the same date and grade. Unfortunately, dealers and auction houses are not obligated to sell every type of coin regularly. It can take years, or even decades, for a particular coin to cross the auction block at a certain grade. Searching for APRs takes much longer than consulting printed materials, although the Collect Pure app and PCGS CoinFacts make life easier.

Buy Lists

Suppose you are looking at a “generic” coin (one that is plentiful and regularly traded in a grade range). In that case, large companies like Heritage Auctions, Stack’s Bowers Galleries, and Upstate publish buy lists (usually daily) stating prices they are paying and selling for particular coins, such as Morgan dollars, pre-1933 gold coins, proof sets, and more. Although not always available to the public, those with access are usually kind enough to share it.

Assessing a Coin

Knowing what similar coins are selling for doesn’t help if you don’t look at the coin itself. The eye appeal, the holder, current events, the size of the coin, toning, and even how many times it has been sold influence a coin’s value within the bounds of established prices. A large coin graded 20 years ago, sold only once before, with bowl luster and bright toning, can blow prices out of the water, sometimes surpassing much higher ones. A small coin graded 5 years ago, sold 15 times in that period, with muted luster and discoloration, will test how low that type of coin can sell for. A Certified Acceptance Corporation (CAC) label adds a premium to any coin. Still, there are vast differences between coin types and grades. Considering your coin as a list of pros and cons will help determine which end of the spectrum you should be willing to pay for it.

Making the Decision

The principal thing to remember about pricing coins is that you only know their value once that coin sells. Then, it is only that valuable until it sells again. Guides, APRs, and buy lists are just data points to form an approximate appraisal. You should never use a specific source of information as the final word. Most importantly, the price you should pay for a coin is one you feel comfortable paying.