How much is it worth....rarity vs value?

keoj

Okay, the supply/demand got me thinking on a couple of levels. Someone astutely defined supply being related to rarity and demand being related to value (well said!). Okay a couple of different scenerios I'd like to relate. I'd be interested is seeing other peoples comments.

1) Low demand series but its a R7 variety. Because it is a low demand series, is the R7 rarity worth anything generically? (I know this is going to be "in the eye of the beholder" or "it depends" answer, just thought I'd ask.) I see a lot of 2C and 3C pieces that seem to fit this category well.

2) Same as above but the coin is a cleaned R7.

3) High demand series but a R5 or R6 coin. Without knowing the coin, but wow I've seen coins go for big money lately.

4) High demand series but a cleaned R5 or R6 coin. Example: what is a cleaned 89-CC Morgan go for these days.

Just taking a very generalized case, I've seen a 100-1000X multiple occur between case #1 and #3. Much more rare, much lower value. Just proves the point that demand rules.

keoj

bigtonydallas

Look at the 1804 dollar and the 1822 5 dollar gold? The 1822 has only one in public hands. The 1804 has a whole lot more!

longtimecollector

As long as the number of collectors is greater than the number of coins available, the price will rise astronomically.........

If you've got one of 6 known pieces of a certain variety, but there are only 2 collectors (#'s simplified to make a point), there's not going to be a premium even if it's a high R-7

Nysoto

The bust half series shows these market valuation dynamics for rarity. The capped bust series begins rarity premiums at R.4, as there are probably 100-200 serious die variety collectors who want all die marriages, not just a year or redbook set. The 1795 flowing hair R.5's often sell without premiums, as there are less than 30 collectors of these, only the R.6 sell for much rarity premium. With 1794 halves, I have seen R.6's sell for little rarity premium over the past couple years, as there are no more than 12 collectors of 1794 halves by die variety. The prices of 1794's have gone up 100-200% the past five years, depending on grade, as "first year" collectors demand them without regard to variety, bidding up the "common" O.101 R.3+ to prices even with R.5's and sometimes R.6's.

Then there are the 1796-1797 halves, with 1797 O.101 now R.4+, not even rare by the Sheldon scale. The rarest of the silver type drives prices sky high from the many type collectors.

Redbook demand for overdates increase prices for even common R.1 overdates.

Bill