The CAC Myth?
Out in the numismatic world there is this perception sometimes that CAC is a major market maker. I love coins with CAC beans on them (>80% of my collection) bc on average it means they are a great coin. But. Each week like many of us, I receive a highlights of the upcoming GC auction tomorrow. There are are incredible coins that are being highlighted and I am sure that Ian is putting up the creme de la creme of the listings. This week, there were 224 CAC eligible coins shown in the highlight email. Out of those, I counted 41 CAC, or 18%. That is even higher than on ebay. For example, on ebay for barber quarter listings for MS and PF in grades down to 40, there are 389 coins listed, 37 that are CAC (9.5%). In early halves there are 98 CAC (<6%) out of more than 1700 eligible from G6 up. For early halves with prices from $750-1500 there are 298 listings of CAC eligible and only 11 are CAC (3.7%) - >$1500 there are 613 CAC eligible listed and 69 of those CAC (11%) . I think both GC and ebay provide a key view of what the real market is out there.
So what I see here is that even within the area CAC considers, only a small fraction of the market is CAC approved coins. If I were a dealer, I think I would want to deal in more than CAC coins to make a living. All of these coins find a home and move through the market so it seems one is leaving a whole bunch of the market out if one only sells CAC. Now HST, there are dealers who have a heavy emphasis on CAC and are very successful at it, but I am thinking there is only room for a few of them.....
Conclusion, CAC as a market maker is mostly a myth - only a very small part of the market - maybe more influential on 4 figure coins on up (although ebay listings of early halves don't support this), but in terms of numbers and possibly total value of the numismatic market, no.
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