Appraise Your Coins: Know What You Have and What It’s Worth
Coin collecting is more than a hobby, for many it is also a big investment opportunity. As with any investment it is crucial to know the value of what you own. The only way to make sure that your collection is appreciating is to have solid numbers for the current value and to follow changes in the market.
You may not have time to pay attention to every shift and wave in the market, but the professionals do. An honest appraisal of your collection can offer you a variety of benefits.
What Type of Appraisal Do You Need?
The reasons to get your collection professionally appraised are endless. There are two basic types of appraisal: replacement value and sales value.
- Replacement Value – This appraisal method is used predominantly for insurance purposes. Coin collections must be insured in case of loss, theft or damage like any other valuable property.
- Sales Value – The value of the coins if they were sold on the day of the appraisal is what you are provided. This is often significantly less than the replacement value, since it represents what a dealer would pay, or the wholesale value.
Understanding the differences between the two types of appraisal can be critical depending on the intended use. If you are appraising your collection for insurance purposes, you want the highest possible price. If you are appraising the collection for donation or to split in your estate between heirs you need a more realistic number.
Why Appraise Your Collection?
Not only can an appraisal help you determine the value of your collection, it can also help you maximize your trade value. Grading is a large part of the final value of a coin. Under graded coins are not as valuable in either direct sale or in trades.
A large part of the coin market is trades for coins of like value. It is not uncommon for coins to be either under or over graded. In either case, you need to know so that you are not surprised by grading disputes. A reputable dealer is your best resource for accurate appraisals.
How to Get Your Collection Appraised
Choosing the dealer to provide a valuation for you coin collection is a delicate process. If a dealer expects to be able to purchase coins from you in the future they may be motivated to undervalue some of your collection. Research multiple dealers before choosing one for your official appraisal.
Never accept appraisal terms that charge based on the value of the collection. Instead, make sure to negotiate the total fee based on the size of the job, before presenting your coins. This will help you get the best price on the appraisal and an uninterested party for the final valuation.