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From raregoldcoins.com: The Market Premium Factor

RYKRYK Posts: 35,797 ✭✭✭✭✭
The Market Premium Factor (MPF) is discussed in the latest Doug Winter blog.

I personally have mixed feelings. While it is certainly intellectually satisfying to consider that a 1923-D Saint should sell for more money than a 1924, because the survival population is considerably lower, unless several thousand collectors/investors are all seeking one for a date set, there seem to be more than enough around even at the MS-67 level.

Any comments?

Comments

  • LongacreLongacre Posts: 16,717 ✭✭✭
    Interesting blog. Here is a quote:

    "For the savvy collector or investor a key to making a good return on your investment is to identify coins that are scarce but which do not sell for a significant premium. If and when this series becomes popular and collectors start paying attention to specific dates, you might well have some nice profits."


    I wonder if anyone has done an analysis of similarly situated coins in other series and determined what percentage of increased demand causes the prices of common and MPF coins to separate. I can't even guess whether it is a relatively large change in demand, or whether a somewhat smaller change in demand will cause the price increases (hmmmm, I think I should start buying up some dates once someone provides the answer...).
    Always took candy from strangers
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  • BarryBarry Posts: 10,100 ✭✭✭
    Collector demand is everything. In gold's case, with a very limited number of sets being put together, nobdoy cares about the rarer dates (as DW said), so limited premium.

    OTOH, look at 09-SVDBs and 16-D dimes, for example. They are dirt common. They can be found in plenty of dealer cases and appear in every auction in large numbers. Why are prices high? Because there are lots of collectors putting together the sets.
  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    If you buy into the concept-- paying a big premium for 'scarcer' gold in a long gold series---- is a great deal for sellers and dealers. About once a decade --or so-- the conditions are right.
    Have a nice day
  • 291fifth291fifth Posts: 24,421 ✭✭✭✭✭
    Is the Market Premium Factor just another one-way-market gimmick?
    All glory is fleeting.
  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    <<another one-way-market gimmick? >>

    GIMMICK????? -------such a tacky word....wash your mouth out sonimage
    Have a nice day
  • PerryHallPerryHall Posts: 46,342 ✭✭✭✭✭
    So let me get this straight----better date coins at or near common date prices are a good idea. Wow!!! Why didn't I think of that?






    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

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