The Value of Gold and Silver Coins in a Collectors Eyes
Coins are used as money to pay for transactions of goods and services; it may be created from any kind of metal however the most common metals used to create coins are gold and silver. Coins have been used as money and as facilitator of trade since the Greek times. However, it was suggested that India invented the coinage system in the 5th or 6th century according to literature. The coinage system was adopted by the European countries and was popularized by the ancient Greeks. Americans and other countries have also adapted the system to facilitate trade and commerce.
Pure metal coins were first created by the king of Lydia and gold coins in China were created during the Ying Yuan dynasty. The Greeks followed the use of gold and silver as coins and the first minted coin was created in 550BC. In the 16th to 19th century carrying coins began to be impractical with the invention of paper money and banks. Soon the market is dominated by notes and paper money to facilitate trade and commerce all over the world and the coins began to have lower values but is still used as money. Today coins are mass produced and known as bullion coins, these coins have more value in terms of quantity rather than quality.
In time, gold and silver coins may have lost their part in the coinage system but has increased their individual monetary value. These kinds of coins are what they called collectors item and can have high value regarding on the metal used, date minted, historical significance, rarity, quality, beauty and design of the coin. Most collectors are willing to pay high prices just to complete their collections. In July 2002, a gold coin, specifically the 1933 double eagle gold coin was sold for almost 8 million which has the highest value ever sold. The 1933 double eagle gold coin is rare because most of the coins were melted down and re-minted and only few coins survived.
Gold and silver prices differ from each vintage coin. It has two values; the face value and the gold or silver value. The face value is the value placed on the mint or postage in the coin while the gold value is the price of the coin as gold or silver. Prices of most collectors items coins range from 50 USD up to 8 million USD. However damage and quality of the coin greatly affects its price. The coins are passed into a grading system to determine its price and value. The Sheldon scale is the universally known basis of coin value in the world. It uses a 1 to 70 numeric scale to determine its quality. But for most collectors, they prefer to put a value on the coin depending on several factors like; the eye appeal, dents on the rim, scratches and blemishes in the surface of the coin, luster, tone and retained detail. The more detail retained in the coin, the higher the gold price compared to the worn out ones.