How to Get Your Coins Appraised

What an appraisal is (and what it isn't)

An appraisal is a professional opinion of value for a stated purpose on a stated date. The purpose matters more than most people realize, because the same coin has several honest values at once. Replacement value is what it would cost to buy a comparable coin from a retail dealer, which is what an insurer wants. Fair market value is what a willing buyer and a willing seller would agree on with neither under pressure, which is what an estate or the IRS cares about. Liquidation value is what you would get selling quickly, often to a single dealer. It sits below the other two.

An appraisal is not an offer. When a coin shop owner looks over your collection and says a number, that number is usually what the shop would pay you. It already includes the shop's margin. That's fine if you want to sell. It's the wrong number for an insurance policy or an estate inventory. An appraisal is also not a grade from a grading service. PCGS and NGC tell you what condition a coin is in and whether it is genuine. They do not put a dollar figure on the holder.

Who appraises coins

There is no state or federal license for coin appraisers, so you are judging experience and independence rather than a credential printed on a wall.

• Coin dealers. A local shop or show dealer is the fastest way to learn what you have. Many will give a verbal estimate at no charge when they hope to buy. Some also prepare written appraisals for a fee. Ask which service you are getting before they start.
• Auction houses. The large numismatic auction firms will review a collection and suggest auction estimates, usually free, because they want the consignment. Some also offer formal estate or insurance valuations as a separate paid service.
• Independent personal property appraisers. Members of groups such as the American Society of Appraisers, the International Society of Appraisers or the Appraisers Association of America write formal reports that follow USPAP, the Uniform Standards of Professional Appraisal Practice. Coins are a specialty, so ask whether the appraiser handles coins personally or brings in a numismatist.
• Grading services. They authenticate and grade, which feeds into an appraisal, but they don't appraise.

How to prepare before anyone looks at your coins

Leave the coins exactly as you found them. Don't wipe, polish, dip or rinse anything. Don't pull coins out of albums, mint packaging or grading holders. Cleaning is the single most common way people turn a collector coin into a melt coin.

Make a simple list: denomination, date, mint mark, quantity and how each coin is stored (album, flip, roll, slab, original mint set). Note any slab certification numbers. Put silver and gold to one side and count them separately. If there are receipts, old price guides with notes in the margins or a handwritten inventory from the original collector, bring them. Those papers often show which coins the owner thought were special.

Photograph anything you think might be important, front and back, in daylight. Keep the original list at home and bring a copy. If the collection is large, ask whether the appraiser will come to you or whether you should bring a sample first.

Questions to ask the appraiser

• Which value will the report state: fair market, replacement or liquidation?
• How do you charge? Flat fee, per item or hourly are all normal. Get the structure in writing before work starts.
• Will you or your company offer to buy these coins? If yes, keep the appraisal and any offer separate. Get a second opinion before selling.
• How many coin collections have you appraised? Which series do you know best?
• Will each coin be listed individually, or will bulk silver and modern sets be grouped by lot?
• For raw coins, how will you describe condition? Will you note coins that you think deserve professional grading?
• Does the report follow USPAP? Will it be signed and dated?

Red flags that should make you slow down

Walk away from anyone who wants a percentage of the appraised value as a fee. The appraisal profession treats that as unethical because it rewards a high number. Be just as wary of the opposite: someone who glances at a box for a minute, declares it all common and offers a round figure for everything. A careful appraiser sorts first, uses a loupe and checks dates one by one.

Other warning signs include pressure to decide on the spot, refusing to let you stay in the room while coins are examined, taking coins away without an itemized receipt, telling you not to get another opinion or claiming every coin is a rarity. If an appraiser offers to clean coins to make them look better, find someone else.

Written appraisals for insurance and estates

A proper written appraisal identifies each item clearly: series, date, mint mark, grade or grade estimate, certification number if slabbed and the value assigned. It states the purpose, the type of value, the effective date and the method used, such as recent auction results for comparable coins. It includes the appraiser's qualifications, a statement that the appraiser has no interest in the property and a signature.

For homeowner's or renter's insurance, ask your agent before you pay for anything. Many standard policies limit coverage for coins and currency. A separate rider or collectibles policy usually wants a replacement value appraisal. Update it every few years, since coin and metal markets move.

For an estate, the executor typically needs fair market value on the date of death. That figure matters later for taxes, so get it done early, even if nobody plans to sell. If coins are being donated to a museum or charity, the IRS has its own rules for appraisals of donated property. The donor's tax professional should confirm what kind of appraisal is required before the gift is made.

Frequently asked questions