Holder grade - and "new investor" pricing

DHeath

As more collectors/investors enter the market, to what degree will holder grade dictate pricing. Obviously, if you don't have any experience grading, the holder grade becomes your only benchmark with which to make a price decision (without dealer assistance). Sight unseen, the holder grade is the only trustworthy measure of the coins relative value. Will the ugly, or overgraded coins bring retail? Will there be a smaller gap between PQ undergrades and technically graded dogs? To Mark Feld's credit, the common theme of the coins featured his posts has been the difference between market grade and technical grade. Please correct me if I'm misinterpreted your pics Mark. If the nuances between the two are not obvious to an investor, which example are they likely to buy? Will that raise the water level for all coins, or will the gap close between the barely made the grade stuff and the why didn't this upgrade stuff. Since many of the neophyte wealthy collectors will be do-it-yourselfers, will even the dogs become scarce and exensive? Long term, is that a good thing for the hobby? BTW - and this question is really aimed at the dealer community, do you believe the new investor will pay a premium for a PQ coin with eye-appeal, or will they simply read the price guides, and bargain shop?

DCAMFranklin

I don't believe the answer is either/or. Some collectors are going to continue to "buy the plastic" and give no premium/discount for the individual coin. Other, smarter collectors will pay the premium for the PQ coin or a coin with superior eye appeal. Personally, I think there will always be adequate supply. Heck, there are so many awesome coins sitting in mostly older age collectors' safes and safety deposit boxes, that there will be lots of opportunities to acquire great coins and place them in 3rd party grading services' holders. Heirs who do not share an appreciation for coins will make them available immediately after the probate process.

merz2

I definitely think there will be an increase in investors/collectors buying.They will more than likely buy the slab.Most wouldn't know PQ from average coins.The prices for the top graded coins will continue to rise.I was watching the Lincoln Proofs on the Heritage site.The current bids are above prior prices realized.IMHO,these will set new records.