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Why is HERITAGE VALUE INDEX nearly always less than other price guides?

ERER Posts: 7,345 ✭
in U.S. Coin Forum
Does anyone have any theory / explanation about the Heritage Value Index?
Does anyone ever win a coin within their price ranges? I am sure there a few. But, based on my browsing
through their prices realized, the majority of the winnings are way above their Index range.
My theory is this: If you sell your coins to them, they will base whatever their purchased prices on their Index, which means you almost always come out at the short end of the stick.
Any opinions would help. Thanks.

ER

Comments

  • wingedlibertywingedliberty Posts: 4,805 ✭✭✭
    Your theory is 100% correct.


    Brian.
  • wingedlibertywingedliberty Posts: 4,805 ✭✭✭
    Oops, , Welcome to the forum!

    Brian.
  • ERER Posts: 7,345 ✭
    Thanks. That makes me feel better.

    ER
  • MastaHankyMastaHanky Posts: 933 ✭
    I think their value index is about what you could expect to get if you were selling your coins, not only to them, but to a dealer in general.
  • AndroidAndroid Posts: 726 ✭
    I think the Heritage Value Index is based on the average price of the number of coins for a particular date that they have auctioned. You can see auction price histories by date on their site I believe.

    Andy image
    We are finite beings, limited in all our powers, and, hence, our conclusions are not only relative, but they should ever be held subject to correction. Positive assurance is unattainable. The dogmatist is the only one who claims to possess absolute certainty.

    First POTD 9/19/05!!

  • barberloverbarberlover Posts: 2,228 ✭✭
    I don't subscribe to the sheets anymore but i remember seeing prices ranges between blue sheet at the low end of a range to above grey sheet at the high end of the range for most coins.

    Unless you are saying most greysheet prices are not what dealers will pay for properly graded coins, then i think they give about as realistic average as any value guide around, unlike redbook and some other price guides that give inflated retails.
    The President claims he didn't lie about taxes for those earning less then $250,000 a year with public mandated health insurance yet his own justice department has said they will use the right of the government to tax when the states appeals go to court.
  • sinin1sinin1 Posts: 7,500 ✭
    I'm not sure where you have been buying, but Heritage is about closest available - or else mid pt between blue sheet and grey sheet.

    But I guess I don't buy PQ, I buy holdered low end.
  • shirohniichanshirohniichan Posts: 4,992 ✭✭✭
    If only I could have gotten near HVI price for the 1876 double eagle I sold in AU-58 (they estimated its worth at around $1,200 to $1,400).
    image
    Obscurum per obscurius
  • keithdagenkeithdagen Posts: 2,025 ✭
    It was explained to me by a Heritage employee that the Value Index represents the approximate price that the coin sells for at auction, minus the fees. So if a coin with fees sells for $115, Heritage would estimate the value at $100 on the Index.
    Keith ™

  • ccexccex Posts: 1,188 ✭✭✭
    The Heritage Value Index is a result of past auctions, without the 15% buyer's fee. This is useful information, if you remeber it is 86.96% of the actual price to a buyer at an auction.

    I find the online price guides (PCGS, Numismedia, and usually Coin World Trends) useful only for the optimistic and somewhat misleading seller, and tend to stay away from auctions that list those "values" in their descriptions.
    "Never attribute to malice what can be adequately explained by stupidity" - Hanlon's Razor
  • ERER Posts: 7,345 ✭
    Appreciate your help.

    ER
  • MadMonkMadMonk Posts: 3,743 ✭
    Of course I believe that the prices are structured for them to realize the advantage. They are, after all, a retailer.
    Today's mighty oak is just yesterday's nut that held its ground.
  • BustmanBustman Posts: 1,911 ✭
    I think the Heritage Value Index is a decent representation of low-end or average for the grade, coins. Forget it for high-end, monster, PQ coins.
  • jgrechjgrech Posts: 47
    I look more to the actual Heritage auction results in researching values, along with the Teletrade auction results. There's nothing like actual past sales to give you an idea of a coins value. Also, the last coin I bought at a Heritage auction, I got for a little below their index value (and its nice coin).
  • darktonedarktone Posts: 8,437 ✭✭✭
    Here is what it says on the Heratige site. mike image
      Heritage Value Index
      *The Heritage Index™ is based on recent wholesale and auction transactions for NGC and PCGS certified coins. Infrequently traded coins may therefore show outdated prices. Our experts constantly refine and adjust individual prices based on their trading experience, but errors are still possible. If you notice any mistakes in the prices listed, or can suggest adjustments based upon more recent sales records, please e-mail your comments to JimS@heritageCoin.com so we can adjust these prices accordingly. These value ranges should not be considered an offer to buy or sell. Many factors go into pricing coins including relative rarity and eye appeal. The listed prices do not apply to coins graded by services other than NGC and PCGS, and even some NGC and PCGS coins may sell for substantially under or over these price ranges. Please use them as an indication only.

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