One of the most common questions people ask when they bring coins in to sell is some version of “How did you come up with that number?”
It’s a fair question. And it’s one every dealer should be able to answer clearly. If someone offers you a number and can’t explain how they got there, that’s a problem.
This article walks through the evaluation process step by step—what dealers look at, what data they use, and what you should expect from a professional buyer.
Step 1: Identify What You Have
Before anything gets priced, it needs to be identified. For coins, that means determining three things: the date, the mint mark, and the type of coin.
This sounds basic, but it’s where value starts. A 1921 Morgan Dollar from Philadelphia is common. A 1921 Morgan from Denver is less common. A 1921 Peace Dollar is a key date. All three are silver dollars from 1921, but their values are completely different.
For gold and silver jewelry, identification means testing purity. Karat markings (10K, 14K, 18K, etc.) are a starting point, but professional dealers verify with various modern testing methods: XRF analyzers, acid tests, and specific gravity measurements. Some jewelry is marked incorrectly or not marked at all, which is why testing matters.
For bullion, it’s about confirming the refiner, weight, and purity. Recognized products from government mints or established refiners (PAMP, Valcambi, etc.) carry tighter premiums. Generic bars and rounds may trade differently.
Step 2: Assess Condition
Condition has an enormous impact on coin values. Two coins that look the same to an untrained eye can be worth vastly different amounts based on grade.
Professional dealers evaluate wear patterns, surface quality, luster, strike quality, and eye appeal. The industry uses the Sheldon scale—1 through 70—with higher numbers indicating better condition. The jump in value between grades can be dramatic: a Morgan Dollar in VF-35 might be worth $50, while the same date in MS-65 could be worth $500 or more.
For coins already graded by PCGS or NGC, the grade is established and generally accepted by the market. For raw (ungraded) coins, the dealer’s assessment of condition directly affects the offer.
This is one of the most important reasons to sell to someone who knows what they’re doing. A buyer without grading expertise will default to conservative estimates—or just pay melt—because they can’t accurately assess condition.
Step 3: Check the Market
Here’s where data comes in. A professional dealer doesn’t price coins based on memory or gut feeling. They reference current market data from multiple sources.
Spot price: For bullion and jewelry, the daily spot price of gold, silver, platinum, or palladium is the starting point. Everything is calculated as a percentage of spot. The spot gold price refers to the price at which gold may be bought and sold right now, as opposed to a date in the future. The spot price for gold is in a constant state of flux and can be driven by many different factors. The spot gold price can refer to the current price of gold per ounce, gram, or kilo.
Greysheet (CDN): The industry standard for wholesale pricing. Updated regularly with actual transaction data. This is the baseline most dealers use.
Heritage Auctions and Stacks: Recent auction results show what coins are actually selling for in competitive bidding. This is real-time market evidence, not theoretical pricing.
PCGS and NGC price guides: These reflect retail market values for graded coins, based on reported transactions and census data.
eBay verified sales: For common coins and bullion, recent completed sales on eBay provide useful data points, especially for items that don’t appear frequently at major auctions.
A dealer who isn’t referencing at least some of these sources is making educated guesses. That might work in their favor, but it probably won’t work in yours.
Step 4: Calculate the Offer
Once the identification, grading, and market research are done, the dealer calculates an offer. This is typically a percentage of the current market or wholesale value.
Dealers are businesses. They need margin to operate. But what that margin looks like varies. Pawn shops might pay 50–60% of value. A professional coin dealer typically pays significantly more because they know the market, have established buyer networks, and can move inventory efficiently.
For bullion and jewelry, the offer is usually expressed as a percentage of spot. For numismatic coins, it’s based on a percentage of wholesale or retail value depending on the piece.
The key is transparency. A good dealer will explain exactly how they arrived at the number. You should be able to see the spot price, the Greysheet value, or the auction comparable they’re referencing. If the math is hidden, the offer probably isn’t in your favor.
What a Fair Process Looks Like
When you bring items to a professional dealer, here’s what the experience should feel like:
They examine your items in front of you. They explain what they’re seeing—dates, mint marks, condition notes, anything notable. They show you the data behind the pricing. They give you a clear number. And they give you time to decide without pressure.
If any part of that process is missing—if items disappear into a back room, if the number appears from thin air, if you feel rushed—those are signs you should get a second opinion.
Get a Transparent Evaluation
At Xenia Coin Shop, the evaluation process is exactly what’s described above. We go through every piece, explain what we’re looking at, reference current market data, and give you a straightforward offer with nothing hidden.
We’ve been doing this for over 40 years. We’re ANA members, authorized PCGS and NGC dealers, and we use Greysheet, Heritage, and live market data for every evaluation. The process is free, and the decision is always yours.
Bring your coins, jewelry, bullion, or collection. We’ll show you exactly how we determine value and what it’s worth.