How does a rare coin get to be worth $19 million?

The phrase ‘Don’t take any wooden nickels’ is something many of us have heard during our childhood, but what if this wooden nickel was good for a million dollars? I am not suggesting that there is any wooden nickel out there, or more to the point, that it is actually worth that amount of money, but there are some coins in circulation that are as valuable as their face value.

Almost always, money in circulation that can be obtained as change for instance, a quarter, may be worth over $2,000. One just has to know how to look at them or, in other words, where they’re located.

Here is how Jeff Garrett, a past president of the Professional Numismatists Guild, sums up the auction of the most costly coin that is now available: “The most expensive coin sold at auction has one of the best stories ever!”

Also Read: 1921 Silver Dollar Coin Prices

The coins were never issued into circulation and shortly after the tapes, a small number of the coins that had been produced were banned as illegal to possess and most of them were recovered, says Garrett. “In the 1990s, another example was seized in a sting by the Secret Service, and with the help of a long court case, it was ruled to be the only legal example that could be owned. It was sold at auction in 2022 for nearly $19 million.

As you perform your pocket search, empty your piggy bank, pick up coins from under the cushions of the couch, and rummage through the storage closet for coins, there are several things you need to remember in a bid not to lose cents that could make you a millionaire.

Metal Content

There is only one way for a given rare coin to possess a higher circumstantial price value than the number ordinarily attributed to it, namely if the metal content is either precious or base.

The coins produced in precious metals, especially gold, silver and platinum, are much more highly valued due to the actual value of the metal used in their making. The $50 face value of the USA’s American Gold Eagle is a gold bullion and at today’s price of gold on the market, it could fetch you over $1,800.

coins made from base metals such as copper or nickel can also become priceless if the base metal becomes scarce over time or has some uses that make it precious. “The rarity and the fact the fact that it has been mistakenly minted from copper only add to its worth; it is now being appraised at over $100,000.”

Also Read: Valuation Of The Mercury Dime (1916-1945)

Age

In fact, the age of an old coin may have a substantial impact on the value of the entire piece. As a rule, the older the coin is, the shadier it will be; in other words, it will become increasingly difficult to find such a coin in good condition with each passing day.

Zaldivar uses such examples as the 1794 Flowing Hair Silver Dollar. This was “one of the first silver dollars ever minted by the US, and because of its age and historical value, it was sold for $10 million in 2013.

Zaldivar says that there is extra value in coins that were produced and used during certain historical periods or occasions because they offer knowledge into the epochs and their circulation may be rare. “The 1787 Brasher Doubloon is a private currency minted by Ephraim Brasher and it is worth over 7 million dollars due to its historical undertone and some of its historical implications concerning the formation of America.”

Limited Edition

Anything that has the tag ‘limited edition’ will automatically increase its price because of its lower availability. That, of course, is all changed when it comes to coins and that goes through an entirely different set of evaluations. One of the reasons that there are few examples of attempted designs of the coin is again whether or not they were made with some particular purpose in mind; they could, therefore, be considered commemorative.

As Zaldivar says, it is possible that such pieces as the 2009 Ultra High Relief Double Eagle made of gold with the design of Augustus Saint-Gaudens can cost more than $2,000. This is true because “souvenir coins that are launched to mark a particular year, occasion or personality usually have a certain quantity in circulation in the market.”

Of course, other aspects of cone design can also be a reason why particular cones are scarce and comparatively costly.

“Coins that have unique features in the shape or artwork also trade at a premium,” adds Zaldivar. The Liberty Head Nickel of 1913, with only five known pieces in the world, is worth millions of dollars because of its vagaries and design.

Design Flaws

It is therefore possible to argue that even though something is perceived to be perfect, that does not necessarily mean that it comes with a steep price. Indeed, it is very frequently the case that whether a coin has some design feature that will make it more valuable or not is up to the observer.

“There are many varieties, such as the 1955 Double Die Lincoln, which has a clear doubled image and goes for over $1,000 in high grade,” says Zaldivar, explaining that even though minting a coin seems like a mistake that is costly in terms of money at the end, it will add value to the coin in the future.

For instance, Zaldivar points out that ‘coins that have design flaws that were by accident can become collector coins because they are rare.’ Coin die varieties cause design flaws that ultimately increase the price of a coin by making it scarce.

FAQs