3 Things Getting Your Coins Appraised Will Allow You To Learn

If you have a collection of coins and you think that the coins hold value beyond their face value, it is vital that you get your coins appraised. Here are three things that you can learn by getting your collection of coins appraised.

#1 Replacement Value

The first thing that you will learn is the replacement value of your coin. This is exactly how much money you would have to spend in order to purchase the exact same coin on the market today, should anything happen to your coin. For example, if your coin collection was lost in a flood, this is the money that you would have to spend to replace every coin in your collection with the exact same one.

If you choose to specifically insure your coin collection or inform your insurance company of your coin collection, this is the value that they need to know. This is the value that your insurance company would pay you if your coins were lost or damaged due to one of their covered events.

#2 Bid Value

The second thing that you will learn about your coin by getting it appraised is its bid value. Bid value is different than the replacement value. This is the amount of money that an appraiser estimates that a coin dealer would pay you to obtain your coin. This amount is generally lower than the replacement value.

Think of it as the difference in price you would get if you tried to sell a guitar to a pawn shop instead of to an interested third-party via a website like eBay. The individual on eBay is more likely to pay close to the market, or replacement value, for the guitar, as they want the item to use it or for their own personal collection. The pawn shop is going to offer you less than you could get from a third-party seller because they make their money by selling your guitar to a third-party seller themselves; you are getting less money because you are paying someone else to facilitate a sale for the actual value of the item. The replacement value is what a collector would pay to obtain your coin or that you would pay to replace your coin; the bid value is what a coin buyer who is just interested in reselling the coin would pay for your coin in order to still be able to make a profit off it.

#3 Detailed Description

Finally, the last thing you can expect to get when you have your coins appraised is a detailed description of your coins. The appraiser will look over your coins with a well-trained eye, and they will record any imperfections in your coins that they notice, as well as the level of cleanliness of your coin. This detailed description will help you better understand the value of your coin and will help you provide a more detailed description, beyond the year and type of coin that you have, should you ever decide to sell your coin.  

Click here to read more about coin appraisals.