Which is a more major factor determining value?
gecko109
Posts: 8,231 ✭
Is it rarity or condition? I realize its certainly a mix of the two properties, and possibly even a few more factors. In real estate, the axiom is "location, location, location". If coins HAD to have a similar type axiom to describe the reason for their value, what would it be? Think about how a modern prez dollar in MS70, pop 1 could be worth as much as $12,000 although the coin type itself is dirt common. Now think of a 1792 half disme in FR 02 condition that may be worth $12,000 although its a great rarity, the condition makes it hard to appreciate the coin itself. So, is it "condition, condition, condition"....or is it "rarity, rarity, rarity"?
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Collectors tend to not even want something if they don't consider it rare on some level and once they do want it then they tend to want the nicest they can afford.
Now for the extra credit question: What are the major factors that determine demand?
Liberty: Parent of Science & Industry
<< <i>Yep, Cladking nailed it. DEMAND.
Now for the extra credit question: What are the major factors that determine demand? >>
Highly choreographed and well planned dealer promotions?
<< <i>Yep, Cladking nailed it. DEMAND.
Now for the extra credit question: What are the major factors that determine demand? >>
When you can't buy a coin you need at anywhere near gray sheet
<< <i>Is it rarity or condition? I realize its certainly a mix of the two properties, and possibly even a few more factors. In real estate, the axiom is "location, location, location". If coins HAD to have a similar type axiom to describe the reason for their value, what would it be? Think about how a modern prez dollar in MS70, pop 1 could be worth as much as $12,000 although the coin type itself is dirt common. Now think of a 1792 half disme in FR 02 condition that may be worth $12,000 although its a great rarity, the condition makes it hard to appreciate the coin itself. So, is it "condition, condition, condition"....or is it "rarity, rarity, rarity"? >>
Depends on the coin, but in general, I'd answer neither is nearly as important as "demand, demand, demand".
<< <i>
<< <i>Is it rarity or condition? I realize its certainly a mix of the two properties, and possibly even a few more factors. In real estate, the axiom is "location, location, location". If coins HAD to have a similar type axiom to describe the reason for their value, what would it be? Think about how a modern prez dollar in MS70, pop 1 could be worth as much as $12,000 although the coin type itself is dirt common. Now think of a 1792 half disme in FR 02 condition that may be worth $12,000 although its a great rarity, the condition makes it hard to appreciate the coin itself. So, is it "condition, condition, condition"....or is it "rarity, rarity, rarity"? >>
Depends on the coin, but in general, I'd answer neither is nearly as important as "demand, demand, demand". >>
But dont rarity and condition combine to create demand?
<< <i>
<< <i>
<< <i>Is it rarity or condition? I realize its certainly a mix of the two properties, and possibly even a few more factors. In real estate, the axiom is "location, location, location". If coins HAD to have a similar type axiom to describe the reason for their value, what would it be? Think about how a modern prez dollar in MS70, pop 1 could be worth as much as $12,000 although the coin type itself is dirt common. Now think of a 1792 half disme in FR 02 condition that may be worth $12,000 although its a great rarity, the condition makes it hard to appreciate the coin itself. So, is it "condition, condition, condition"....or is it "rarity, rarity, rarity"? >>
Depends on the coin, but in general, I'd answer neither is nearly as important as "demand, demand, demand". >>
But dont rarity and condition combine to create demand? >>
No only eye-appeal and those wild toners determine value
<< <i>Yep, Cladking nailed it. DEMAND.
Now for the extra credit question: What are the major factors that determine demand? >>
There are different types of demand. One would be "national" demand (i.e. U.S. coins have more demand than, say, coins of Paraguay).
Another would be "series" level demand, often the series that are commonly collected by date and mintmark rather than just as type coins. Lincolns and Morgans have more demand than three cent pieces, and all else being equal, Lincolns and Morgans will be worth a lot more given similar supply.
And finally, there is demand on the individual coin level: the eye appeal relative to its grade. In any coin series -- popular or not -- coins with truly superior eye appeal for the grade will always be in demand.
In honor of the memory of Cpl. Michael E. Thompson
How available a coin is depends entirely upon rarity, not condition.
Here's how condition comes into play. Conditional rarity.
Sometimes a coin in a particular condition is common. Sometimes a coin in a particular condition is rare. So, condition only plays a part in as much as the rarity of the condition.
Value comes entirely from those sheets with prices on them. That's how you tell how expensive a coin is. Really simple, just look it up!
<< <i>Yep, Cladking nailed it. DEMAND. >>
i agree
K S
<< <i>Demand is half of it. Availability (you know, supply) is the other half. Both of these together balance to determine price, which I guess is what you mean by 'value'.
How available a coin is depends entirely upon rarity, not condition.
Here's how condition comes into play. Conditional rarity.
Sometimes a coin in a particular condition is common. Sometimes a coin in a particular condition is rare. So, condition only plays a part in as much as the rarity of the condition. >>
Of course you're right that it's supply and demand that determine
price in all commodities and services but collectibles are a little dif-
ferent in that demand is nearly completely elastic and ephemeral.
If it were only one collector who decided to get in or out of a ser-
ies there would be almost no effect on supply or demand for most
series. But collectors have always tended to be interested in the
same coins and to lose interest in the same coins. Coins come into
style or out of style for myriad reasons but the fact is that they do.
This means rare coins in popular series will command huge premiums
while rare coins in unpopular series can sell for a song.
<< <i>
<< <i>Demand is half of it. Availability (you know, supply) is the other half. Both of these together balance to determine price, which I guess is what you mean by 'value'.
How available a coin is depends entirely upon rarity, not condition.
Here's how condition comes into play. Conditional rarity.
Sometimes a coin in a particular condition is common. Sometimes a coin in a particular condition is rare. So, condition only plays a part in as much as the rarity of the condition. >>
Of course you're right that it's supply and demand that determine
price in all commodities and services but collectibles are a little dif-
ferent in that demand is nearly completely elastic and ephemeral.
If it were only one collector who decided to get in or out of a ser-
ies there would be almost no effect on supply or demand for most
series. But collectors have always tended to be interested in the
same coins and to lose interest in the same coins. Coins come into
style or out of style for myriad reasons but the fact is that they do.
This means rare coins in popular series will command huge premiums
while rare coins in unpopular series can sell for a song. >>
Yes cladking,
And this has resulted in a great deal of frustration from die hard collectors of challenging 19th century series. They resent the fact that a "common" 1916-D dime sells for much more than their "rare" Liberty Seated dime. It's unfair, but "fair" is word that should have no place in the collecting realm. Look at the endless supply of MS 1913 T1 Buffalo nickels. I'm waiting for the price of these to plummet to $25. After all, there are truckloads of these in superb grades such as MS-65, but they keep rolling along, fetching decent prices. Of course, if they were low in supply, the price would hit the roof, but despite their relative availability, they are surprisingly expensive.