(Sorry CCU, but another Doug Winter thread)-- how can "underappreciated" coins get to the

Longacre

I was taking a look at Winter's new New Orleans gold book. One of the frequent themes that I am seeing in the book is that many of the New Orleans gold coins are "underappreciated" for their relative rarity. The author frequently points out that "C" and "D" mint coins of similar or even lesser rarity command much higher prices than the underappareciated New Orleans dates. There is one coin in particular that I researched that was downright shocking in its rarity levels, while the prices currently are dirt cheap.

Other than starting up my own well-managed promotion to inflate the demand for certain coins, what does it take for dealers or collectors to finally realize that certain coins are underappreciated, and then move those coins to appreciated status?

UncleWiggly

First, be a mult-gazillionaire, buy up every 1881-S Morgan you can find and melt them! Then the 81-S will pop over to the appreciated category.

ColonialCoinUnion

Uncle.

What does downright shocking in their rarity mean in terms of actual quantity known?

USCGCraig

I have a quarter eagle with a mintage of only 1,632 pieces yet this PCGS AU50 piece is worth approx. $800-$1,000. Under-appreciated? You think?

Longacre

<< <i>Uncle.

What does downright shocking in their rarity mean in terms of actual quantity known? >>




I think total known of 150 pieces is quite rare, relatively speaking, when you compare C and D coins of similar rarity and the prices. Maybe 150 pieces is not rare in other series, though.

ColonialCoinUnion

<< <i>

<< <i>Uncle.

What does downright shocking in their rarity mean in terms of actual quantity known? >>




I think total known of 150 pieces is quite rare, relatively speaking, when you compare C and D coins of similar rarity and the prices. Maybe 150 pieces is not rare in other series, though. >>



I asked, because I assumed it would be some number in the hundreds and I can name 20 or 30 different colonial types which exist in numbers of 25 pieces (not slabbed - total) or less, and which are similarly underappreciated.

Perhaps its semantics, but the issue isn't appreciation IMO. Its finding a manageable and understandable way for people to collect them.

partagas

Rarity while important to me and others is far outweighed by popularity. Popularity effects the price more then rarity.

Just look at the 1893s morgan and 1916 SLQ. Huge pops compared to many true rarities. Yet these coins go for moon money compared to truely rare coins.

I think you said it best, well managed promotion. Without one, the coins will always be rare yet oddly affordable. So long as supply outweights demand you will be under appreciated.

RYK

Here's a good real world example and comparison:

The 1842-C SD $5 is the rarest and most expensive of the C & D half eagles. There are about 60 known and 5-7 in the AU range (one MS). A nice AU piece will run you well over $50,000.

The 1842-O $5 is the second rarest and most expensive of the O mint half eagles. There are 50-60 known and 6 or seven in the AU range (two in MS). A nice AU piece will run you between $12,000 and $15,000.

Longacre

<< <i>Here's a good real world example and comparison:

The 1842-C SD $5 is the rarest and most expensive of the C & D half eagles. There are about 60 known and 5-7 in the AU range (one MS). A nice AU piece will run you well over $50,000.

The 1842-O $5 is the second rarest and most expensive of the O mint half eagles. There are 50-60 known and 6 or seven in the AU range (two in MS). A nice AU piece will run you between $12,000 and $15,000. >>




RYK-- thanks for providing a specific example. That was not the coin that I was thinking of, but it is similar. I am shocked by the prices outlined above.

lloydmincy

You're opening the flood gates, Longacre. I still feel the $3 gold series based on rarity and cost for au50 and up grades are "underappreciated". The basic economics 101 answer to your question would be more buying, and pricing goes up. BTW, to me, an existence of 150 or less is RARE.

IGWT

In my experience, rarity alone means bupkus when it comes to price, and one of the joys of collecting is focusing on rarity where there is little demand.