Does anyone use a Sheldon type scale to determine price when purchasing a coin?
DeusExMachina
Posts: 1,325 ✭
For example, I was looking at a coin the other day and it's price was not listed in grades lower than VF. The coin was a solid F-12. VF20 priced at $2000 so the base value was $100 and the price of a F-12 should be $1200 (12*100).
I understand that high end grades are not linear but should lower grades (G-F) be linear? I would think so but I was just curious what others thought?
I understand that high end grades are not linear but should lower grades (G-F) be linear? I would think so but I was just curious what others thought?
0
Comments
Take as an example something like, say, a 1927-S quarter. This is a pretty scarce coin in VF or better, but despite the low mintage it can be had pretty easily in grades through Fine. If a decent XF40 goes for $750 (I might be a little out of date here) then that would give a price-per-Sheldon-point of $18. At that rate, a Fine-15 ought to fetch around $280, but in fact you can find a nice doesn't-quite-make-VF 27-S for around $120 if you keep looking.
That is just one example. There are lots. Classic head large cents are another good example. You might pay $60 for an OK Good, $110 or so for a decent VG, maybe a bit more, upwards of $300 for an honest, no-problem Fine, and it skyrockets from there.
As a counterexample, consider the 1928(P) Peace dollar. $400 can get you a spanking choice AU, but to get an F12 you'll still shell out $300 or so. Similarly, you can find a gem Spanish Trail commem for $2000, maybe less, but an XF (and if you can find an honest XF of this, you get some kind of medal, since nobody else can) would theoretically set you back $1,000 or so.
It is completely linked to what survives in the particular issue, and to the demand structure on the issue as well. Some coins people actively seek by date, mint, and die variety in Fine. Others, nobody wants to touch in grades lower than Gem Unc.
The rule you propose here is really interesting as a theory, but I think the times where it will give you an accurate prediction are probably the exceptions.
Certain examples might, but not as a whole.....
I guess in my mind, at some point, the curve probably is more linear than exponential. Maybe this is the well worn phase, say G4-F12. And the series and rarity matter as well, as Mirabella and Barndog pointed out.
I found a coin that was an interesting example of one that is not often seen in the market. I looked all over for data points and really couldn't find any recent, comparable sales given the grade. I got to the point where I wanted to assign some value (or maximum value) and wasn't sure the best way to do so. The linear scale seemed the most logical. For me, it all comes down to happiness and utility (yes, the economic concepts) and they are generally difficult to quantify.