Buy Rare Coins Online at SD Bullion
Collecting rare coins is a hobby that dates back over a hundred years. The American Numismatic Association, for instance, was established back in 1891. Since then, coin collecting has become one of the most popular hobbies in the United States and is sometimes referred to as the "King of Hobbies."
Being able to understand and appreciate all the symbolism in designs and the incredible work that goes into coinage production is what sets apart a real collector from a simple investor.
This page is a curated selection of SD Bullion's inventory of some of the most valuable coins, not only from the United States but also from around the world. It includes a wide collection of Pre-33 US Gold Coins, "key dates" silver coins, commemorative issues, and both vintage and modern collectibles.
Characteristics of Rare Coins & Valuation
It is crucial to understand how rare, collectible coins are valued so you can sell and buy your products for a fair price. Here are some of the main factors that can influence the value of rare coins:
Mintage Number
Each mint produces a different number of coins every year. A low mintage could indicate a coin is rarer and more valuable because there are fewer of them available.
The accurate measure of rarity is how many pieces have survived in good condition. Even a coin issued initially in large quantities can become rare if only a few well-preserved examples remain.
Mint Marks
Initially, mint marks were placed in United States Mint coins as a quality control measure so the mint could track where the coin was produced if it presented any errors. Nowadays, a coin's mint mark also plays an essential role in its rarity since it provides additional historical value to the coin.
For example, Morgan Dollars minted in New Orleans and Carson City are in higher demand than those from other mints due to their limited mintage numbers. Additionally, both mints are no longer in operation, so any coins originally from them attract even more demand.
Historical Significance
Even though coins have always been the primary means of exchange or legal tender, they tell the country's history. Coins, including United States coinage, usually carry the face or bust of essential figures, like George Washington in circulating Quarters.
Symbols like Lady Liberty bring a message of desire for peace and freedom, and the bald eagle symbolizes the courage and strength of the United States.
Grade/Condition
The coin's condition is one of the main aspects of its value.
Third-party grading companies like PCGS and NGC grade coins on a scale from 1 to 70 (named the Sheldon Scale). Poor 1 signifies heavy wear with a barely discernible design, while MS 70 represents a perfectly struck, uncirculated coin in Mint State (MS).
Most coins fall somewhere between these extremes. When it comes to coin collecting, being able to find a rare coin in Almost Uncirculated condition (grades between 50 and 60) or even in Uncirculated condition (grades between 60 and 70) is a collector's dream.
Market Demand/Popularity
It is relatively simple to understand how a coin's popularity affects its value: the more collectors interested in a particular coin, and the fewer samples available, the more expensive it will generally be.
According to the American Numismatic Association, Morgan and Peace Dollars are some of the most popular series in American history. And this partly explains why they are commonly more expensive than other series of equal rarity.
Composition
The coin's composition also tells us about the country's economic or supply situation. For example, the U.S. removed silver from coins in the 1960s due to a silver shortage.
While industrial uses drove demand for silver to nearly triple between 1958 and 1965, silver mining and production did not increase at the same rate. This imbalance caused silver prices to rise, making the melt value of silver coins exceed their face value.
However, most rare coins will not be valued solely by their precious metal content but mostly for their scarcity, demand, historical significance, condition, and popularity among the coin-collecting community.
The US Mint
Since its founding in 1792, the U.S. Mint has been the nation’s sole manufacturer of legal tender coinage. It is responsible for producing circulating coins that allow the nation to conduct trade and commerce.
The Mint also produces coin-related products, including proof, uncirculated, commemorative, Congressional Gold Medals, and silver and gold bullion coins.
Currently, the United States Mint operates from four different branches: The West Point Mint, the Philadelphia Mint, the San Francisco Mint, and the Denver Mint.
The US Mint is also responsible for maintaining the Fort Knox Bullion Depository.
Their headquarters is in Washington, D.C., though it does not make coins. Instead, it is responsible for the general administration of the Mint, including research, marketing, and other business-related operations.
Rare Coins in the United States
The United States holds a rich legacy in coinage that reflects pivotal moments in the country's history.
From the early years of learning and adaptations in the original United States Mint facility in Philadelphia (known as "Ye Ole Mint") to the bustling popularity of modern-day bullion coin programs, such as the American Eagles Program, the United States has no shortage of options for coin collectors.
Since the advent of the fiat currency era and the complete debasement of gold and silver from the US Dollar, the fact that these Pre-1933 gold coins and even Pre-1970 silver coins have stood the test of time and survived hoarding and melting down is a testament to their historical significance, symbolism, and undoubtedly, the artistry and high craftsmanship of the US Mint.
Pre-1933 Gold Coins
Pre-33 gold refers to U.S. gold coins minted before 1933 when President Franklin D. Roosevelt issued Executive Order 6102, which banned private ownership of gold bullion. This government order stopped the U.S. Mint from producing gold coins for public circulation.
After the 1929 crash, gold prices skyrocketed, and as a result, many people started hoarding and melting down gold coins for their precious metal content, which was surpassing their face value.
As a result, the surviving population of most of these Pre-33 Gold Coins was severely affected and reduced. That is why these coins are so crucial to collectors: not only because they are incredibly rare but also because they represent a pivotal moment in American history.
Silver Dollars
Silver Dollars are some of the most collected coins worldwide. They remind us of a bustling economic era, especially Morgan Dollars from the turn of the 20th century.
"Common date" Silver Dollars are relatively cheap and priced as regular 90% Constitutional Silver. In other words, their prices are mainly based on the current silver spot price. However, some rare samples from specific dates or bearing specific mint marks are priced for their numismatic appeal and can be worth thousands of dollars.
Commemorative Issues
Throughout the years, the United States Mint has released commemorative coins and medals that pay homage to important figures, celebrate important historical events, or even commemorate national landscapes.
These coins and medals are incredibly appreciated for their unique designs, low mintage, and, above all, for what they represent or celebrate.
Collecting Rare Coins
Even though you can find an error coin in your pocket change, very few valuable errors exist today in circulation.
Before you start your coin collection, you first need to establish the following:
- A budget - how much of your monthly income or savings will you spend on these collectibles?
- Your goals - do you have a specific collection in mind? Do you want to focus only on silver dollars or diversify your collection from the start?
- Plan how you are going to store your assets—do you have a safe place to keep them? Most of our rare coin selection comes in protective slabs that will prevent exposure to warmth and moisture that could potentially cause tarnish, but do you have a lockbox or safe to protect against theft? Or do you plan on keeping your coins in a 100% insured depository service?
There are various approaches you can take when collecting coins. You can collect coins by country (United States coins), period, denomination, or composition. Error coins, such as off-center strikes, overstrikes, doubled die errors, clipped planchets, and defective dies, are also popular among collectors.
But the main aspect of coin collecting is learning and appreciating what these coins represent. Each of these coins has played a significant part in American history. They take us back to important periods of economic shifts, war and peace, evolution, and enlightenment. They are a legacy to behold, a symbol of struggle and fight for our collective rights as a society.
Investing in Rare Coins
When it comes to bullion coins, the primary value is in their composition; the value is mainly based on the spot price of the noble metal and then other aspects like the mint's reputation, the designs, security features, and demand.
On the other hand, investing in rare coins can be complex, as their value primarily depends on numismatic factors like rarity, condition, design, mint origin, and age, often exceeding their precious metals content.
Precisely because of this dynamic, rare coins can appreciate due to growing demand and limited supply, but they are not guaranteed to sell for the same price you paid. Their market value is driven by demand, which can fluctuate, affecting the coin's resale potential.
Therefore, when collecting, remember that the primary goal is to enjoy and learn from the hobby.
- What makes a coin “rare”?There are different reasons for a coin to be considered "rare." First, the original mintage figures and that coin's existing or surviving population. The scarcer the number of existing specimens, the more attractive it will be to collectors. The condition also plays a crucial role. Some coins might be common in "circulated" conditions but rare in "uncirculated." Finally, the coin's historical significance is the ultimate driver for popularity and demand. That means coins tied to specific historical contexts, influential figures, or coins with unique mint errors or rare variations.
- How do I know if a rare coin is authentic?
Each coin has distinctive characteristics that make it unique. It can be the precise lining and the font in the inscriptions, the position of the designer's initials, the alignment of the design elements, or many other small details, sometimes not noticeable to the naked eye. To ensure a coin is authentic, take it to a trusted coin dealer or have it appraised by a grading service, such as PCGS, NGC, or CAC.
- What is coin grading, and why is it important?
Coin grading is a system of appraisal that indicates a numeric grade for the coin on a scale from 1 to 70 (named the Sheldon Scale), where 1 is a specimen almost completely worn out, and 70 is a perfect mint condition. Coin grading is important because it clarifies to both parties in a transaction the precise condition of a coin and its estimated value according to its grade. The higher the grade, the more valuable the coin will be.
- How should I store and care for my rare coins?
Store your rare coins in protective holders or slabs in a dry, cool environment to avoid tarnish or corrosion. Consider using silica gel packs to absorb moisture and regularly inspect your coins. Always handle your coins with gloves or with dry, clean hands, holding them by the edge only. Ideally, store them in a safe or lockbox to prevent theft.
- Are rare coins subject to capital gains tax?
Yes, in the United States, rare coins are considered collectibles, so any profit obtained as you sell them will be subject to taxation. If you hold the coin for less than a year, your gains will be taxed as ordinary income, according to your income tax bracket. Coins held for over a year will be subject to long-term capital gains tax, with a maximum rate of 28%.
- What is the difference between numismatic and bullion coins?
Bullion coins are intended for investment purposes. Precious metals are hard assets and are considered a safe haven to hedge against the financial implications of a widespread economic downturn (e.g., high inflation, fiat currency devaluation, etc.). Bullion coins are priced according to their precious metal content and the current gold, silver, platinum, or even palladium spot prices. On the other hand, numismatic coins are collectibles.
- Can I include rare coins in my retirement account (IRA)?
Only certain coins can be included in a self-directed retirement account (IRA). Gold coins must be 99.5% pure, silver coins must be 99.9% pure, and platinum and palladium must be 99.95% pure. Most rare coins, including Pre-33 US Gold Coins or US Constitutional Silver Coins, were usually 90% pure. Because they were intended for circulation, their alloys had to be hardened with copper, nickel, or other base metals to improve durability. Therefore, most rare coins are not IRA-eligible.
- How can I determine the market value of a rare coin?
You can determine the market value of a rare coin by knowing its precise grade and consulting its estimated value in a price guide. Most third-party coin grading companies, such as PCGS and NGC, maintain a regularly updated price guide with a supposed price for coins in different grades.
- What are the most popular U.S. rare coins among collectors?
All Pre-33 US Gold Coins are reasonably popular, but the Saint-Gaudens Double Eagle is the most popular. It is largely accepted as one of the most beautiful designs in American Coinage history, with the rendition of Lady Liberty standing with a torch held high in one hand and olive branches in the other, with the rising sun rays in the background. When it comes to silver coins, the Morgan Dollar is arguably the most collected and desired. Some key dates and variations can sell for thousands of dollars.
- Do rare coins appreciate in value over time?
Yes, some rare coins can appreciate in value over time. As they are not being minted anymore, you can only expect the survival rate of those coins to diminish. On the other hand, a collector's desire to own that specific piece of American coinage history does not equally reduce, but in fact, it can even grow over time as these coins become older and rarer. Therefore, rare coins can appreciate in value over time.
- Where can I sell my rare coins, and how does the process work?
SD Bullion has a fair and transparent buyback process. To start the transaction, you can contact our team at 1-800-294-8732 or through our web chat feature. You will receive a shipping label to send your products to our facility. Our inventory team will receive your package, inspect each product for authenticity, and, once approved, send you your payment within 1-3 business days.
- What should I look for when buying rare coins online?
Look for trusted dealers only. SD Bullion is a Top 100 Internet Retailer in the esteemed Digital Commerce 360's 2024 database and rated A+ on the Better Business Bureau. We've shipped more than 1,500,000 orders to over 450,000 satisfied customers. We take pride in being a respected player in the digital commerce landscape, and in doing business the old-fashioned way.
- What are key dates, and why are they important in rare coin collecting?
"Key dates" refer to specific mint years, indicating that a coin from that year has unique characteristics that possibly make it highly collectible. It can be due to specific changes in the design that only occurred that year, existing mint errors, or simply because the mintage figures were lower than the average, meaning a coin from that year is potentially scarcer than from other dates. It is quite a big deal in rare coin collecting because "key dates" will generally be much more valuable than "common dates."