Why are coin price lists always so far off on actual values ?

silvereagle

The coins that are graded in ms 66 or higher are always listed in the price books at much higher than what they actually go for in the marketplace. I dont just mean the rogue company's. I mean PGS and NGC as well. NGC has a 64 quarter in ms 66 priced at $70 + but I just saw one go on EBAY for $12. It was an NGC MS 66 and it went for 20% of what it is supposedly worth. Would it really be so hard for the companies who make the price guides to be realistic with the prices ? Or is it because NGC has something to do with setting the value of an MS66 Quarter and they realize if we think its worth $70 we will be more likely to send it in and pay to have it graded than we would be if its only going to be a $12 coin ? I think that may be the reason and if so the price guides are really quite worthless.

relayer

It's fun to pretend

orie

I've wondered the same thing.

silvereagle

Ha. Thats Funny. I think you're right. Those prices are so high its just a fantasy. I hope noone thinks they are actually going to get thos kind of prices when they go to sell their coins. If they do, they have a rude awakening coming.

pharmer

They may not pay attention to actual sales. They may just be stating their opinions and those of the guys on their bowling team. But you shouldn't, and you should use the information available about actual sales. Keep records, search Heritage and TT archives, ebay past sales, anything that has actually occurred.

Russ

A price list is a static device attempting to keep pace with a dynamic market.

Russ, NCNE

silvereagle

Understandably, a price list once made doesnt change where the market changes constantly. But even so, wouldnt we expect to see prices way off base in both directions ? Some prices way overvalued, while others are way undervalued. It seems that the bias is alway in the same direction. It seems that the coins graded from MS 66 through MS 70 are always valued at some crazy price that wont even actually be realized at 25% in the real world.

Russ

<< <i>But even so, wouldnt we expect to see prices way off base in both directions ? >>



There actually is some of that in the PCGS price guide. There are a handful of issues they have listed with values well below market. On balance, though, you're right. Most price guides are too high. Probably because they cater to retail dealers.

Russ, NCNE

Coinosaurus

The only price guide I don't argue with is auction results. All the rest is noise.

Codder

From what I've seen, dealers use the price list to sell coins. They use the "real world" price when they buy them back.

Steve

<< <i>From what I've seen, dealers use the price list to sell coins. They use the "real world" price when they buy them back. >>



Dealers SHOULD use the PCGS price list when they sell coins. It is a RETAIL price guide, isn't it? If you want a more realistic listing of low/high prices representing recent wholesale dealer and auction prices check out the Heritage Index under coin pricing for numistists. It probably is the best way to ESTIMATE the true value of your coins. Sorry, the after 1964's are not there now.
Steve

Baley

a 1964 quarter is a very common coin. in an auction situation, maybe a slabbed MS66 just isn't in demand.

robertpr

The coin market is too dynamic to be accurately reflected in a price guide. Coins of the same grade typically vary widely from coin to coin in terms of eye appeal, and even technical quality. Additionally, the coin market is relatively thin compared to other markets and thus is somewhat inefficient. In addition to the wide varience in quality among pieces graded the same, the different grading companies use slightly different standards for grading the same coins: NGC is particularly loose when grading Washington Quarters for example, and thus the market does not place a lot of confidence in the grades assigned by NGC for that particular series, unless the coin is inspected in-hand.

The price guides you see typically are attempting to price high-retail in-hand transactions where the actual coins are being physically inspected by the buyers. eBay transactions typically price coins lower than that, sometimes significantly lower, and other venues even lower than that. In addition, sight-unseen transactions usually involve other costs such as shipping and insurance that are not present in in-hand transactions, resulting in lower prices as well.

hootchiegirl

a coin is only worth the last price paid for it if one person wants it it is cheap if 100 want it it is expensive they have very little intrinsic value until you liquidate yours.

jayboxx

Isn't the PCGS price guide supposed to be based on auction prices and what the coins are actually selling for instead of setting prices?

Trime

Price lists for coins are not accurate because:
1) They are intended to provide a high end estimate for average coins. This serves the retailer and teepromoters. This creates a sense of value and allows retailers to create a false sense of retail price when selling to the uninitiated.
2) Grades may also not recognize what a buyer is willing to pay for what he/she perceives as a special coin. This is BTW one of the bases for market grading (rewarding a coin for special eye appeal by a higher grade than the coin technically deserves). Highend for grade coins also demand a premium which may or maynot be similar to published retail guidelines. There are no guidelines for passionate decisions and hype.

1921obsession

Um, because the people publishing the price lists have a vested interest in high coin prices.

291fifth

It has to do with the way the prices are compiled. The error will differ with every pricing guide depending what factors they consider.

About a year and a half ago one pricing guide raised its large cents prices following a particularly strong auction. However, the auction had little effect on the prices on the bourse floor. Coin pricing is very inexact and always has been.

mrearlygold

<< <i>It's fun to pretend >>

DennisH

I'd be thrilled to death to know what "actual values" are for any series of coins. I've always been under the impression that there is no Coin Value Czar that decrees what a coin is worth, but instead sellers of the coins have the final say in what its price is.

Or have I been wrong about this all along?

Steve27

"Dealers SHOULD use the PCGS price list when they sell coins."

ROFL!!!

If dealers tried to sell modern coins for the PCGS guide price, they would go out of business.

Whizzard

<< <i>The only price guide I don't argue with is auction results. All the rest is noise. >>



Absolutely right. To price a coin you have to look at whats been realized in past auctions, consider the coins being sold and price appropriately. Even so in an illiquid market, e.g. eBay auctions on less popular issues or specialized issues, even that won't give you much guidance.

AU58WALKERS

Some coins you can't buy for multiples of the price guide.

Normaly the ones I try to buy.