If you’ve ever had a coin or a piece of gold jewelry appraised, you may have been surprised by the difference between what it’s “worth” and what it might actually sell for. This confusion usually comes down to two important concepts: fair market value and retail pricing. Knowing the difference between the two can help you make more informed decisions when buying, selling, or insuring precious items.
What Is Fair Market Value?
Fair market value (FMV) is the price an item would sell for on the open market between a willing buyer and seller, both with reasonable knowledge and neither under pressure to buy or sell. It reflects current demand, metal content, rarity, and the condition of the item.
This is the value typically used in estate appraisals, probate cases, and insurance settlements. It’s a realistic number based on current market conditions, not an inflated price tag.
What Is Retail Pricing?
Retail pricing is what a dealer might list an item for in a store or online. It usually includes a markup to cover business expenses and profit margins. Retail prices are generally higher than fair market value, especially for collectible or investment-grade items.
For example, a gold coin with a fair market value of $1,800 might be listed in a retail setting for $2,100. That doesn’t mean it will sell for that price—but it sets expectations for what a buyer might pay in a curated, retail environment.
Why This Matters for You
- If you’re selling: Understand that you will usually receive something closer to fair market value, not full retail.
- If you’re insuring an item: Make sure your policy reflects retail replacement value if that’s your goal.
- If you’re settling an estate: Courts and attorneys typically require fair market value appraisals.
Get the Right Appraisal for the Right Purpose
At Honest Coin Shop, we tailor our appraisals based on your needs—whether it’s for insurance, estate settlement, or selling. We’ll clearly explain the difference between market value and retail pricing so you can make informed decisions with confidence.
Have questions about a coin or piece of jewelry? Schedule an appointment with us today.
