Rare coins are, by definition, uncommon coins that can command top dollar, with some rare coins topping the million dollar mark at auction. How does the market dictate what a coin will bring at auction or on the open market? Here are the main factors that determine the value of a rare coin.

The grade that the coin receives from an independent third party grading service is one factor. The grade, which can range anywhere from 1 (poor) to 70 (perfect), is what differentiates one coin from an identical coin of a different condition. The number scale was developed to lend precision to the scoring process. Often collectors will submit their rare coins for a second opinion in hopes that the grade will increase, even by a small amount. Grading services openly admit that the grade may vary by one or two points depending upon the evaluator.

Rare coins also hold more or less value depending upon how many of them were minted in the first place. A coin’s rarity depends upon how many are known or thought to be in existence. Scarcity is the key to driving up value.

Some rare coins are on more collector wish lists than others. Which coin is or isn’t in vogue may change depending upon personal taste. Prices swing up and down depending upon who is willing at any given moment to put up the cash for a particular coin.

Desirability, scarcity, and grade will always be the main determinants of the prices of rare coins.