Supply and demand is a huge factor in the price of collectible coins. If the demand for coins is low and there are many coins available, the price for them will be low. When the total number of coins available becomes insufficient to meet the demand, the prices increase.
The demand is often set by collectors and investors, but the majority of the time it is directly set by dealers. Dealers need to sell coins for a higher price than they paid in order to cover their own costs and to generate income.
Collectible coins have several tiers of prices. Collectors and investors are charged a retail price by dealers. Wholesale prices are the prices that one dealer charges another. The Published Price Guides can give you an idea of what a fair price is for some coins. This book list the typical retail and wholesale prices, although actual prices may vary somewhat.
Dealers rarely pay wholesale prices when purchasing coins from the public, as this is how they make their profits. This makes it hard for collectors and investors to gain a sufficient return on their investment if they need to sell all or part of their collection. Skipping the middleman and going straight to the collector or investor can lead to a better price for your coins.
The chances of finding a collector or investor looking for the exact coin you are looking to sell is remote, though. Purchasing from a coin dealer has its advantages. A highly regarded dealer will assure the validity of the coin that is being traded. They will also be educated enough to form an opinion on the grade and quality of a coin. An experienced person can detect the smallest defect that a less experienced individual may have missed, and they usually are willing to help the public, especially their customers, by sharing that information.
There are many factors that affect the price of a collectible coin:
What the coin actually is tends to be the most important factor in price. If the coin is new, the condition and the grade of the coin will be the main issue. Of course, the date is the crucial thing when considering the value of an older coin. Of less importance in this instance is the grade of the coin. You must also factor in the rarity of the coin. Find out how many of that particular coin were minted. How many of those coins are still out there?
Using a professional grading services or a professional coin dealer is the best way find out the value of your coin. There are some dealers who will offer free appraisal services if you wish to sell a coin. If you use a professional grading service, there will most likely be a fee involved, but it may very well be worth it.
Taking the time to do the proper research is the absolute best way to maximize your profits when selling collectible coins.