retail, bid, ask,... example?

1907Quarter

I know this sounds dumb, but what market forces drive these 3 figures? What are their definitions? And what causes people to pay so much attention to these last two terms?

MrEureka

but what market forces drive these 3 figures?

Fear and greed. I know that sounds glib, but it's more accurate than "supply and demand".

What are their definitions?

"Retail" is a guesstimate as to the price a collector will pay. CW Trends is an example of a "retail" guide. "Bids" and "Asks" are dealer-to-dealer offers to buy and sell. You'll find the most real time bids and asks on CCE, Facts, CoinNet and Eureka. The CDN and CCDN are based, in large part but not completely, on these bids and asks. When someone refers to "bid" or "ask", he is most often referring to the prices in the CDN.

And what causes people to pay so much attention to these last two terms?

Fear and greed, of course.

Julian

Supply and demand, pure and simple.

The bid and ask are theoretical #'s that dealers will buy and sell for, as listed in the various newsletters. CDN, the primary publisher of newsletters, watches the electronic networks and dealer to dealer transactions, to arrive at these prices.

Not everything trades every week and in the case of a non-trade, the existing price remains.

Retail is the price that dealers ask the collecting public to pay, and is generally a function of replacement cost for the item; at least it is in my business.

No one needs numismatics to survive, so any of these prices may be subject to negotiation, just as houses and cars are.

RYK

No one needs numismatics to survive, so any of these prices may be subject to negotiation, just as houses and cars are.

Except that people do need houses and (perhaps less so) cars to survive. Frankly, at this point, I need my coins, too.

Julian

<FONT style="BACKGROUND-COLOR: #c0c0c0">Exactly what is anyone afraid of, Andy?

I understand the greed end of it, but not the fear. Is it that you might sell something too inexpensively?

Collectors, who enjoy the hobby, will pay a fair price for something that they wish to add to their collections.

Traders, speculators, etc. are just looking for capital growth.

Clearly, no collector wishes to be abused by the seller, but will buy an item if it is within reason.

Not everyone needs to get their acquisition at the lowest price.

If that is the case, why does Tiffany's stay in business?
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MrEureka

I understand the greed end of it, but not the fear. Is it that you might sell something too inexpensively?

Yes. Also, that you might pay too much for something.

BTW, I wonder if people are more scared of leaving a few dollars on the table or of being berated for doing so. I suspect the latter.

solid

And there is also fear that prices may go up and it's better to buy now.