This CoinStats summary (distilled from the full 32-page quarterly publication) condenses the most important factors effecting a coin's value in the marketplace into a single rating that will lead you toward outstanding values. The rating takes into account the number of coins of a certain type available in the market and their collective market value. Other rating factors are variations in price between coins of the same type but different grade, affordability vs. supply, and the amount of trading activity a coin generates. Coins rated between 90-100 are an extraordinary value; between 80-89 an exceptional value; between 65-79 an excellent value; and between 50-64 a fair value. Coins rated under 50 are a poor value and are recommended for liquidation. Ratings of 80 or above are set in blue type indicating a strong BUY recommendation. Ratings of 49 or below are set in red and indicate coins to SELL. 
 

1. Market Capitalization (40% of rating) 

Market Capitalization is calculated by multiplying the quantity of coins of a certain type by the current market value. Current market value is the Certified Coin Dealer Newsletter* (CCDN) bid for the most common dates plus 15% (which approximates dealer ask). This is based on coins certified by either Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC). 

Market Capitalization is an excellent way to compare all coins of a certain type and grade within the same category. Coins with the lowest Market Capitalization receive higher ratings. 

* The Certified Coin Dealer Newsleter (CCDN) is a copyright publication of the Coin Dealer Newsletter. 

2. Value Differential (20% of rating) 

Value Differential is twofold. First, the percentage difference between the coin's value in this grade and the value of the coin in the next higher grade. Secondly, the percentage difference between the coin's current market price and its all-time-high price. The greater the value differential in both cases, the higher the rating. 

The rating is weighted with 2/3 of the point value given to the coin's percentage increase in the next higher grade and 1/3 of the point value given to the coin's percentage increase to the all-time-high price. Due to the unavailability of data for coins graded MS68, all of the point value is given to MS67 graded coins based on the coin's percentage increase to the all-time-high price. 

3. Affordability & Supply (20% of rating) 

Coins with a value of under $10,000 are in greater demand from investors as well as collectors and receive 5 points. The supply of certified coins is based on totals tabulated by PCGS and NGC. Coins with populations between 20 and 5,000 receive 5 points and are recommended, depending on the coins total Market Capitalization. Coins with populations under 20 are not rated by CoinStats and coins over 5,000 may receive unfavorable ratings based on a comparison of all coins of the same grade or type. 

4. Trading Activity & Popularity (20% of rating) 

Coins actively trade between dealers on Certified Quote Service (CQS) in the American Teleprocessing Computer Network as well as at trade conventions. Some dealers are wholesale market makers; these dealers actively quote their BUY and SELL prices for many coins. The BUY and SELL price of the most popular coins dominates trading on the CQS. 

Some coins traditionally have greater public demand than others, due to size, design, precious metal content, historical significance, etc. The greater the volume of trading and public demand, the higher the rating for this component.