Is The "Whole" Greater Than The "Parts"?

wondercoin

There has been numerous threads recently pointing out that the ranking of a registry set is essentially meaningless to the value of the coins in the set. The coins basically "speak for themselves" so the argument goes. If the coins are awesome, being ranked #3 or #4 is irrelevant. If the coins are average, being ranked #1 is irrelevant.

But, here is the question of this thread. WHAT IF THE COINS ARE AWESOME AND THE SET IS RANKED #1 OR EVEN #2. Is a "set premium" ever justified for being a "monster" set, as well as the "#1 set"? IS THE WHOLE GREATER THAN THE PARTS in the case of an awesome collection that also just so happens to be #1 or #2? If the seller wants an extra 5% or 10% for the set also being #1 in its class in addition to awesome in quality, is that ever justified?

Hypothetical: You are offered a #1 ranked Registry Set in your collecting area. The coins are, overall, stellar. A few are even "as good as it gets". The price included a "premium" for the collection being #1 in its Registry class (say a 10% add on). The quality is sensational. Do you happily pay the "Registry Set premium"? Are there circumstances then where the rank of a Registry set does equate to extra dollars and cents to the owner of that set?

Wondercoin.

EVillageProwler

I would not pay a premium due to the ranking of the set, but I would pay a small premium simply because it's a set.

But, that's if I actually wanted to keep the entire set. If I didn't want to keep the entire set, then I wouldn't pay a premium for the set. In fact, I'd probably start off by offering a slightly lower price. In short, it depends on whether I'm thinking as a collector or as a dealer.

EVP

Typetone

I paid a small set premium to buy the entire Frank Thomas CS Liberty Nickel set. But that is because I really liked most of the coins, and it gave me a chance to buy dates that I had never seen on the market. The #1 rank at the time wasn't that important as I knew of better sets that were then in existence.

Greg

goyankeez

I won't pay a premium just because it's #1 in the Registry. I will pay a premium for a #1 set, because 1) it's a complete set; and 2) it probably has a lot of top pop and near top pop coins in it. Coins that are hard to find, and when together, may command a premium. Though, it really depends on the specifics like eye appeal of each coin.

I'm not sure if the "whole" would ALWAYS command a premium to the "parts". If it was a great set, there might be many collectors trying to pick up a few coins (top pops and near top pops) here and there to add to their own sets. They might be willing to pay a premium for these individual coins. The entire set may be too pricey for most collectors, and somebody with half of two-thirds of a set may only need a few coins. With the competition of collectors to buy one or two coins, the "parts" may be greater than the "whole".

BTW- I am speaking as a collector and NOT a dealer.

braddick

I understand where you are driving at Mitch, and I agree. Mr. Greene, the owner of the number 1 set of Mint State Kennedies is the type of collector where the low pop, single digit pop coins aren't good enough. They have to be the BEST of the BEST.
He'll even upgrade WITHIN the grade and pay handsomely to do so.
(I hope he doesn't mind me using him as an example.)
If his set ever came on the market and I had the wherewithall I would pay a hugh premium for this set.
Not just because it is the number one set, but because it is (literally) the FINEST SET in existance and probably ever capable of being placed together.
In this case- and I'm sure there are others- in isn't just the single coins that make up the set, but the totality of the set that is worth a premium!

TWQG

It seems like we're all talking about paying a premium for quality which is nothing new. Apart from that I don't see a second premium.

relayer

The term for that is synergy.

syn·er·gy [ sínnrjee ] (plural syn·er·gies)
noun

1. combined effort being greater than parts: the working together of two or more things, people, or organizations, especially when the result is greater than the sum of their individual effects or capabilities


2. medicine combined action of drugs or muscles: the phenomenon in which the combined action of two things, for example, drugs or muscles, is greater than the sum of their effects individually. In the case of drugs, the result may be dangerous to the patient.

IrishMike

Way too hypthetical for me and when you ask a question with "is something ever justified", I suppose if you think hard enough most anything can be justified. On your other question would I pay a premium, probably not. If a set was recently put together, say within the past 20 years, it wouldn't carry as much premium value to me as one put together 50 years ago or 75.

Part of collecting is just that collecting, which means finding the coins yourself, not purchasing a ready made set.

RegistryCoin

A premium is undoubtedly fair to ask, and would be expected, IMHO.

tradedollarnut

Usually when a set is sold it is broken up or absorbed into a larger collection. The set's identity changes completely, so why pay a premium?

I once bought a set on the PCGS Registry....I figured the value coin by coin. All the Walser Sets were sold...coin by coin. The Geosits Collection of trade dollars was just sold at auction....coin by coin. I've seen many sets bought and sold. It usually takes a discount to sell a set whole.

Quality coins will bring quality prices as stated above. But anything more than a miniscule set premium just won't happen except in certain instances. There might be a premium involved if you have an unwilling seller with a buyer who comes out of the blue with an exceptional offer because he just has to have the set. But how often does that really happen?

LincolnCentMan

Rank in the registry is irrelevent to me. If the coins justify it, a premium is in order. I'll almost always pay 10% more for a screamer over an average coin. Why own it if you dont enjoy looking at it?

To the right buyer, however, the whole is greater than the sum of it's parts.

David

gmarguli

Registry rank is meaningless for value. Some might pay a premium to have a complete set because they don't want to take the time and effort to put the set together themselves. However, most buyers wouldn't want all the coins in the set and would discount several of the coins since they were unneeded.

It is rather rare to encounter a set, even a #1 set, that has the highest graded for all the coins. Even if it does, they are not usually pop 1 coins. The buyer of that set probably has some of the coins and wouldn't need duplicates.

And if sets carried a premium, then why are most broken up when sold?