Coin Prices Are Not Coin Values

Whenever you collect something, it has some sort of value.  Now it’s true that while some collectibles may only have sentimental value, they still have value.  Often, collectors buy items for their collection, and when it comes to collecting coins, there’s a difference between coin prices and coin values.

Coin Prices

Coin prices are what you, the collector, will pay for the coins.  If you’re very lucky then you paid the coin’s mint price.  For rare or valuable coins, however, you probably traded with another collector or went to a coin shop to buy it.  Those coin prices are usually higher than the mint price. 

If you’re buying US coins for your collection, you goal is to find coin prices that are below Red Book.  The Red Book is a retail price guide for US coins.  The Red Book value is the price the coin shop charges you.  If you are at a coin show, or trading with friends, you want to get prices as far below Red Book as possible.

Coin Values

The value of a coin is the price you, the collector, can get for it when you sell it.  It’s the price a coin store owner will pay you for it.  The Blue Book lists wholesale coin prices.  So, when you’re selling, you want to get prices higher than Blue Book.

Your Coin Collection as an Investment

Coin collecting is a great hobby, but it can also be an investment because coin prices evaluate over time.  The longer you hold onto your coin collection, the more valuable it will become.  You have earned a return on your investment when the Blue Book prices exceed the Red Book prices you paid originally.

Insuring Your Coin Collection

In investment terms, the worth, or value, of your coin collection is the sum of the Blue Book prices.  That’s what you could sell your coin collection for.

In insurance terms, however, the worth, or value of your coin collection is the sum of the Red Book prices.  That’s what it would cost you to replace your coin collection if it were stolen or destroyed.  Insure your coin collection for its replacement cost.

The difference between coin prices and coin values can be confusing, especially when you’ve got a Red Book and a Blue Book.  Just remember that, initially, you will pay a higher coin price than it’s worth.  If you hang onto it long enough, however, it will be worth more than the coin price you paid.