Collecting valuable coins can be a fun challenge, and it’s especially rewarding when you are able to acquire the most valuable coins and collections. There are a few ways to gauge the investment value of “better date” coins, or those most valuable in a series. One option is the simple and reliable “Benefit Factor” developed by California Numismatic Investments’ own Ken Edwards.
The Benefit Factor is a calculation of a few values that takes rarity and comparative value into account. To find the Benefit Factor of a coin, one must first find the relative rarity of the “better date” coin by dividing the PCGS Population of the most common year in a series by the PCGS Population of the “better date.”
Next, divide the value in dollars of the “better date” by the value in dollars of the most common date. Then, you will divide the rarity number calculated earlier by this new relative value number. The answer is your Benefit Factor, and the higher the number the more value in rarity you are getting for the cost.
For more tips on investing in coins and precious metals, contact California Numismatic Investments at (800) 225-7531.