It’s not uncommon to find a box of old coins tucked away in the attic of your grandparents or parents house. During the 1960s, the US Mint changed the composition of the coins in circulation to the nickel clad copper that we are familiar with today.
Before 1965, most coin denominations were minted from an alloy that contained 90% pure silver. This included all of the dimes, quarters and half-dollars. As the new coins were put into circulation, many people hoarded the old coins for the intrinsic value of the silver.
Melting of old silver coins is legal, and over the years many of the old 90% silver coins have been melted down and refined into other forms.
Many old coins can also have numismatic value to collectors. If you find an old box of coins in the attic, it is a good idea to do so research about the coins you have to give you an idea of the value.
Begin by sorting and cataloging your coin collection. Organize the coins by denomination, country of origin, and year. Many collectors will make use of spreadsheet that can make it easy to sort and organize and allows you to take notes of any unique traits or properties.
There are various coin guides and price guides available that are frequently used as reference guides in local coin stores, pawn shops and other coin dealers.
Research Your Coins
Research the coins you have using books, online resources, or professional coin appraisers. Look for information on coin values, rarity, and historical significance.
Invest in numismatic books and catalogs that focus on the specific type or era of coins you’re interested in. These books often contain historical information, mintages, and pricing data. The “Red Book”, officially titled A Guidebook of United States Coins is available from Amazon is one of the most widely used reference books by coin collectors and numismatists and provides detailed information and price estimates for thousands of different coins.
Numismatic forums like Coin Community Forum and Collectors Universe are excellent places to ask questions, share photos, and learn from experienced collectors.
Attending local coin shows and coin club meetings can help you meet other collectors who share a similar passion for collecting. These events are excellent opportunities to meet knowledgeable collectors, dealers, and experts who can provide information and guidance.
Websites like FindBullionPrices.com, Numista, PCGS, and NGC can be valuable resources providing databases of coins from around the world. You can search by country, type, year, and denomination to find information about your coin.
Once you’ve identified your coins, determine their approximate value. Keep in mind that a coin’s condition (graded on a scale from poor to mint state) has a significant impact on its worth.
Establish relationships with reputable coin dealers. They can offer insights, appraisals, and information about the coins in their inventory.
For rare or valuable coins, consider getting a professional appraisal from a reputable coin dealer or numismatist. They can provide you with a more accurate assessment of your coin’s value.
Sell Old Coins
Visit local coin shops or contact coin dealers who specialize in your type of coins. They can provide offers based on their expertise.
Websites like eBay, Heritage Auctions, and GreatCollections allow you to list your coins for sale. Be prepared to handle shipping and potential fees.
Attend coin shows in your area where you can meet dealers and collectors who might be interested in your coins. Understand that dealers at the show will be knowledgeable about coin values, so be realistic in your expectations and have some prior understanding of the current market value of your coins.
Consider consigning your coins to reputable auction houses that specialize in rare coins. The consignee may evaluate and grade your coins to determine their condition and market value. This assessment helps in setting appropriate prices and descriptions. The consignee will market your coins through various channels, such as auctions, online listings, or direct sales to collectors and investors.
Online forums and communities, such as those on Reddit or CoinTalk, can be places to connect with potential buyers or get advice on selling.
When selling your coins, set a reasonable and competitive price based on their condition and market demand. Research recent sales of similar coins to gauge their market value.
Tax Implications:
Depending on your location and the value of the coins and the profits generated from the sale, there may be tax implications for selling. Consult a tax professional to understand your obligations.
In some states, the sale of collectibles, including old and rare coins is subject to capital gains tax. Capital gains tax is typically calculated on the profit you make from selling the coins. The tax rate may vary depending on factors such as how long you held the coins (short-term vs. long-term gains) and your overall income.
You may be required to report the sale of collectible coins to tax authorities, even if you don’t owe capital gains tax. Dealers may be required to report the sale of valuable coins to the IRS, depending on the amount of the transaction. Accurate record-keeping is crucial, as tax authorities may require documentation of the sale.
Some states have exemptions or thresholds for the taxation of collectibles. For example, some states might have a minimum profit amount below which capital gains tax doesn’t apply. Be sure to consult with a tax advisor regarding your local tax laws for any exemptions that might apply.
Given the complexity of tax laws and regulations related to collectibles, including coins, it’s advisable to consult with a tax professional or accountant who specializes in these matters. They can provide guidance on your specific situation and help you understand your tax obligations.
If you have a substantial collection or are dealing with high-value coins, consider consulting with a professional coin broker or auction house to help you navigate the selling process.
Remember that selling coins can take time, and finding the right buyer at the right price may require patience. Be cautious of scams or deals that seem too good to be true, and prioritize safety when meeting buyers in person.
