What makes the price of coins go up?

I know the price of gold and silver coinage goes up because the price of gold and silver goes up.

But what about other coins like copper and nickel?

What drives the price of these up over the years?

Every year price guides usually show increases, but what is the driving factor behind this increase?

Do the price of coins go up because the price guide raised the price, or is there something else behind it?

 

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Supply and demand are supposed to be the main drivers in determining a value of a given coin in one grade or another. But, when no one can explain why a trend (up or down) happens sometimes, and when everyone seems to agree that the popularity among collectors, financial situation, and supply remain relatively unchanged, the price suddenly shoots in one direction suddenly.

 

Oddly enough you would of thought that the rescission would of had an impact on prices, but it did not.

 

It did in some series lower grade key dates. Actually,lower grade coins in base metal series usually seem to follow the market pretty close. But, when investments across the board are doing bad, high grade key dates always seem to do well in a sour economy. I feel they are probably a better store of wealth than many investments in a recession such as this last one.

 

Collectable coins are recession proof, bullion is not. The rare coin market actually improved during years of economic strife. As far as what makes coin prices fluctuate, supply and demand plays a small role, but speculation plays the biggest part. As impossible as it is to predict, dealers and price guide printers have tried to predict trends in coins for as long as such things were sold, and 99% of the time they've been wrong. Prices in guides are often light years off due to this.
Guy

 

It's the TPG's-They're "unlocking value."

 

That is something that I didn't consider, financial matters. During a weak economy where people aren't spending, prices for any type of collectable or non-necessity will go down. Of course that would be a factor when determining supply and demand. There are deals out there right now but people still overpay. The admin here has noted that the value of the coin is determined but what educated buyers are willing to pay for a coin. Auctions are no good because sometimes people are asleep, there are bidding wars, bidiots, and sometimes shill bids. Like the coin below, the lower guide for that coin is numismedia and they say its retail price is $7. I bought it for $1.29 with shipping shortly after a lot of bidiots were overpaying for all types of coins. They must have all fell asleep all at once. I got two more as well from the same seller also. If a few Redbook Rons where bidding, the coin below might sell for $10. These factors cause wild fluctuations in price.

 

You're still thinking of the price guide as something that sets the price of coins. It doesn't; it reports coin prices. You're reversing cause and effect.

 

OK. So every year, people just decide to pay a little more for coins?

 

Coin collecting had one of it's best periods of
growth during the Great Depression. Seemingly
trival things such as penny boards can have a big
impact on history.

The trival horse stirrup changed the mounted Knight
from a dork to throw rocks at to someone who could
whipe out half the village.

 

Or people decide to charge a little more for them.

 

What makes the prices of coins increase? Assuming that question is valid, that the prices of coins do increase, then either a decrease in supply or an increase in demand, or a combination of both of the preceding is the cause of increased coin prices.

Now, supply and demand are each a function of many, many factors. The question assumes the elements determinative of supply produce a net decrease, or vice versa for demand, or some functional combination producing increased prices. If true, then the above, simple analysis, is true.

 

What blows my mind is how much cheaper world coins compared to US coins. There may not be many collectors in the US but surely there are in other parts of the world. It almost makes me think that the prices of US collector coins are artificially high.

 

It probably just has to do with popularity. I bought some VG Barbers at melt. Now, the same shop I bought them at charges significantly more. Popularity can be regional, maybe Barbers are not popular around here. I did notice a higher price for low grade Morgans though. Maybe Morgans are more popular here.

 

Desirability. if an object (coin, art, car, antiques, etc.) with finite production is desirable the price increases.

 

Demand is the key factor, as supply is usually known or fixed in many cases. TC

 

Almost everybody's answers SCREAM supply and demand without using the terms.

 

I agree but believe that demand is the key factor. You can have a coin with very limited mintage (low supply) but if nobody wants it then price will stagnate or even decrease. However, you can have a coin with a high mintage (think 2001 silver buffalo commemorative) that many people desire and price can take off and stay at a high level. This is why I believe that the majority of limited mintage proof silver world bullion that has inundated the numismatic market will eventually be worth only spot silver. TC

 

Supply and demand do play a large part, particularly demand. but don't forget to factor in inflation as well. While the coin itself may see little change in actual value, the cost to buy and sell said coin will increase with the increase in the rate of inflation.

 

If inflation is relative, then the cost to purchase a coin remains unchanged.