How to Appraise Inherited Coins & Bullion
Straight answer
Before you sell, donate, or split anything, your first job is to figure out what you actually have and what it is worth at fair market value — the same number that sets the tax basis for an inherited estate. Sort the lot into three buckets: bullion, whose value is melt (purity × weight × spot price), numismatic or collectible coins, whose value comes from rarity, date, mint mark, and grade and can run far above melt, and scrap or jewelry. Then get two or more independent appraisals from reputable coin dealers or numismatists, send anything potentially valuable to PCGS or NGC for grading, and obtain a written appraisal if you need it for estate or tax purposes. Do not clean coins first, and never let the same person both appraise and offer to buy.
Inheriting coins and bullion is rarely a tidy event. You open a box, a safe-deposit drawer, or a closet shelf and find a mix of things you cannot immediately name — tubes of silver, a few gold pieces, an album of old cents, some jewelry. The work ahead is mostly identification, not selling. Knowing what each item is, and what bucket it belongs in, tells you whether its value is set by the metal market that minute or by a collector who may pay many times melt. This page walks through that sorting job and how to get an appraisal you can trust.
The first job: identify what you have, then value it at fair market value
Resist the urge to sell quickly. The first task is an inventory, and the second is establishing fair market value (FMV) — what the items would sell for between a willing buyer and a willing seller, neither under pressure. FMV matters for two separate reasons. It tells you what the collection is genuinely worth so you do not leave money on the table, and for inherited property it generally becomes the cost basis, usually measured as of the date of death. A higher established basis means a smaller taxable gain if you later sell. Getting that number documented early protects you on both fronts.
Everything you found will fall into one of three categories, and the category — not the age or the look of the piece — determines how it is valued. Sort first, value second.
Bucket one: bullion, valued on melt
Bullion is metal bought and held for its precious-metal content: one-ounce gold and silver coins like American Eagles, Maple Leafs, and Krugerrands, generic rounds, and bars from a quarter-ounce up. Its value is melt value — purity multiplied by weight multiplied by the current spot price. A one-ounce gold Eagle contains a full troy ounce of gold, so its base worth tracks spot almost exactly, plus a small premium that fluctuates with demand. A 100-ounce silver bar is worth roughly 100 times the silver spot price.
You can estimate this yourself in a few minutes. Identify the product, confirm its weight and fineness, and run the numbers through our melt value calculator. For the underlying terms, see numismatic for the contrast and the definition of melt-based pricing. The key point: common bullion is a commodity. A 2021 Silver Eagle and a 2019 Silver Eagle in the same condition are worth essentially the same thing, because you are buying the silver, not the coin. Do not assume a generic bullion coin carries a collector premium just because it is a few years old.
Bucket two: numismatic and collectible coins, valued on rarity and grade
This is where inheritances surprise people in both directions. A numismatic coin’s value comes from rarity, date, mint mark, and condition — not its metal content. A common-date Morgan dollar in worn condition might be worth a modest premium over its silver. The same coin in a scarce date, from a low-mintage mint, in pristine uncirculated grade, can be worth hundreds or thousands of times more. Four factors drive it:
- Date and mint mark. A tiny letter — or its absence — can separate a common coin from a rarity. The 1909-S VDB cent and the 1916-D dime are famous because of where and how few were struck.
- Rarity. How many were minted, and how many survive in collectible condition.
- Condition and grade. Coins are graded on the 70-point Sheldon scale. The jump between two adjacent grades can double the price on a key-date coin.
- Type. Whether a piece is a circulation strike or a proof versus BU coin changes both how it was made and what collectors pay.
Because grade swings value so sharply, potentially valuable coins should be authenticated and graded by an independent third party before you act on any number. The two recognized services are PCGS and NGC. They authenticate the coin, assign a grade, and seal it in a tamper-evident holder, which both protects the coin and makes its value legible to any buyer. Grading costs a fee per coin and is worth it only when the potential value clearly exceeds that cost — your appraiser can tell you which pieces qualify.
Bucket three: scrap and jewelry
Old jewelry, dental gold, broken chains, and unmarked odds and ends usually have scrap value — melt, less a refiner’s margin. The first step is to read the stamps. A karat or fineness mark tells you the gold content; sterling silver is marked 925. Our guide to gold hallmarks and stamps explains how to read them. Weigh the marked pieces, subtract any stones or non-gold clasps, and you can estimate melt the same way you would for bullion. Occasionally a piece of jewelry has design, maker, or antique value above melt — but that is the exception, and a specialist, not a scrap buyer, should confirm it.
How to get a credible appraisal
Once the collection is sorted, you want valuations you can rely on. A few principles separate a sound appraisal from a sales pitch.
Get two or more independent opinions
Start with reputable local coin dealers, and get at least two opinions before you trust a figure. A single number tells you nothing about whether it is fair; a second and third let you see the range. For collections with potential rarities, a professional numismatist — ideally one with no interest in buying — gives a more careful read on date, grade, and authenticity than a quick over-the-counter look. Look for dealers who are members of recognized bodies such as the American Numismatic Association or the Professional Numismatists Guild.
Use third-party grading for anything potentially valuable
For coins that might be worth real money, do not rely on any dealer’s eyeball grade as the final word. Submit them to PCGS or NGC. An independent grade settles the two questions that drive value — is it genuine, and what condition is it in — and removes them from negotiation. See authentication for how genuine pieces are verified.
Get it in writing for estate or tax purposes
If the coins are part of an estate, support a tax filing, or will be divided among heirs, get a written appraisal that states FMV as of the relevant date, itemizes the pieces, and identifies the appraiser and their credentials. A verbal “it’s worth about X” does not hold up with the IRS, an executor, or a probate court. For larger or contested estates, an appraisal from a qualified, disinterested appraiser is worth the fee.
Three mistakes that cost inheritors money
Most losses on an inherited collection come from a handful of avoidable errors.
- Cleaning coins. Polishing or scrubbing a coin can erase most of its collector value in seconds — see why you should not clean inherited coins before you touch anything.
- Letting a single buyer appraise and buy. When the person valuing the coins is also the one writing the check, the incentive runs against you. Separate the two roles.
- Assuming old means valuable. Age alone does not create value; rarity, mint mark, and grade do. Many old coins are common, and common bullion does not carry a numismatic premium.
Putting it together
The path is the same for almost every inherited holding. Sort the lot into bullion, numismatic, and scrap. Estimate the bullion yourself with the melt value calculator. Flag anything that looks old, scarce, or unusual for a closer look, and have a numismatist or a PCGS/NGC grade settle its value. Get two or more independent opinions before you act, and a written appraisal if an estate or the IRS is involved. Leave the coins as they are, keep appraisal and buying separate, and you will land on a number you can defend — and a sale, if you choose one, on fair terms.
Does inherited bullion get the same tax basis as numismatic coins?
For inherited property, the cost basis is generally the fair market value as of the date of death, regardless of category. The difference is how you establish that FMV: bullion is valued on melt (purity × weight × spot), while numismatic coins are valued on rarity, date, mint mark, and grade. Both should be documented in a written appraisal if the estate needs it. Confirm the specifics with a tax professional.
Should I get coins graded by PCGS or NGC before selling?
Grade anything that might be worth clearly more than the grading fee. An independent PCGS or NGC grade authenticates the coin and fixes its condition on a recognized scale, which removes those questions from negotiation and usually raises what buyers will pay. For common bullion and low-value coins, grading is not worth the cost. Ask an appraiser which pieces qualify.
Why shouldn’t I clean inherited coins first?
Cleaning is the single most common way inheritors destroy value. Polishing or scrubbing leaves micro-scratches and strips the original surface, which collectors prize, and a cleaned coin is graded and priced lower — sometimes far lower. Leave every coin exactly as you found it and let a grader or appraiser handle it.
How many appraisals should I get?
At least two, and three is better for a collection of any size or potential value. A single appraisal gives you no way to judge whether the number is fair. Independent opinions reveal the real range, and they expose any buyer who is lowballing. Never rely on one person who both appraises and offers to buy.