Teaching Fair Value using the Art of Numismatics

• In Event: Reception with Effective Learning Strategies Posters Session

Abstract

Numismatics is the art or collection of currency, including coins, tokens, paper money, and related objects. Fair Market Value refers to the retail price of certain coins, tokens, paper money, and related objects, a seller is asking for and the buyer is willing to pay. The definition of a collector's coin versus a bullion coin; a collector's coin is sold for a premium over its metal value. That is the focus of how I get students to understand the concept of supply and demand, which leads to a better understanding of fair value. Things are often not what they seem, nor what students think they are. The fair value of two similar coins may vary significantly based on a number of factors, including short-term pricing trends, eye appeal, trading frequency, special characteristics, market availability, demand and precious metal spot prices. What truly gives a collector's coin its value is its relative rarity compared to common date coins. The more coins that are available within a given grade, the lower fair value will be. If a seller has a coin that is certified and has a very low population, or is a one-of-a-kind issue, the fair value will be much higher. In these instances, it behooves the buyer to research this particular coin to determine whether they think this is a good value. As a wise buyer, you are obligated to study and learn about coins before you spend substantial amounts of money on a rare coin. Competition among sellers will create the most competitive prices for coins.

Author

• John D Rossi, Moravian College