what premium means?

[josie 8]

If an expert coin collector or a dealer told a novice that your coin is not worth a premium, what premium in uk pounds or USA dollars, is premium is same as a major purchase in coin collecting? if they say major purchase it means you know what you are buying for its worth? what are the guide if you are buying major piece or coin.

[Rob 3,002]

If an expert coin collector or a dealer told a novice that your coin is not worth a premium, what premium in uk pounds or USA dollars, is premium is same as a major purchase in coin collecting? if they say major purchase it means you know what you are buying for its worth? what are the guide if you are buying major piece or coin.

There is an approximate price the majority of collectors will pay for a particular variety of coin in a particular grade. This usually applies to the commoner pieces because there are sufficient sales to say this, whereas the scarcity/demand will drive the prices of the rarer pieces. People who regularly follow sales will therefore have a rough idea what the coin should sell for. When a coin is said to be worth a premium it is because that piece is better than typically found for that type. It may be more attractively toned, a sharper strike, better centred etc or a combination of factors or simply that it is the best known example. In the case of milled pieces it usually applies to UNC or nearly so coins, but in the case of hammered would be applicable to lower grade coins if they were fully struck up with no flat areas for example. Better than average features will therefore drive demand and result in a premium to the price tyically paid.

An experienced collector will recognise what is a better example having seen sufficient numbers to be able to discriminate - novices, lacking this resource of experience should therefore not buy the first thing they see.

Edited October 8, 2006 by Rob

[Guest Guest]

Thank you Rob,

[josie 8]

So Rob the premium is only available in the people who follow the market regulary, there is no average or base line in all coin denomination and condition cannot really convert it into USA dollar, for more info example of the series of coin in GB on penny 1902 up in world coin catalog says original coin in mint and lustre command a premium but the value of uncirculated almost reach 500 dollars.

SORRY double check almost reach 100 dollars in uncirculated in normal struck in raw coin.

[Rob 3,002]

So Rob the premium is only available in the people who follow the market regulary, there is no average or base line in all coin denomination and condition cannot really convert it into USA dollar, for more info example of the series of coin in GB on penny 1902 up in world coin catalog says original coin in mint and lustre command a premium but the value of uncirculated almost reach 500 dollars.

SORRY double check almost reach 100 dollars in uncirculated in normal struck in raw coin.

No. Anyone can pay a premium to the going rate for a specific coin, but an experienced collector/dealer will only pay a premium for a much better than normally found example. A person who has not seen any or only few examples of that coin is unlikely to be able to grade it properly and it's not very sensible to buy £10 notes for £20.

[josie 8]

Thank you rob.