why do we actually pay $10 to $1000 for coins that are really only worth what the currency it has on it is (EX.- ASE is only $1) just a thought....
They do that so that it is a "coin", not a medal. That way say if silver drops, that ASE is still worth $1. Phoenix
Phoenix: I think that he means: whay pay more than face value for something. If that is the case: 'cause we are weird.
The same reason people pay $X,000,000 for a painting when the materials only cost $10(?). The same reason people pay $1,000's for baseball card when you can get them for <$1. etc.
Oh, okay. Sorry about that. And I don't like the word weird, I prefer the term abnormally gifted. Phoenix
Well it's actually a reverse situation than that becuase in the case of American Eagles, the materials are worth more than the face value lol... And yep, supply vs. demand... in this case the value of the silver, gold, platinum, or whatever sets the floor of the price of the coins. Even if someone discovers a mountain made of solid gold in Antarctica though that 1 oz. Eagle will still be worth $50. (I imagine if such a thing happened people would actually be spending them lol...)
I don't think "supply and demand" is an answer here. That would answer HOW the price is determined, but not WHY. I don't think anyone pays a high price for a coin BECAUSE someone else will. There's more to it than that. The reasons are usually related to some combination of history, scarcity, artistry, and condition. There are also psychological intangibles related to owning something that most others can't, or spending more money on a luxury item than others can afford [i.e., the "snob" factor]. Then there is the motive of buying because of the belief that the item is either a bargain price now, or will be in the future -- the profit motive. So there are many reasons why coins sell for more than face value.
Which reminds me, don't forget to sell your platinum before someone sets up a base on the moon in the next 50 years... the moon is full of it.
To all of you out there that may have taken umbrage at the term "weird" I am truly sorry. Perhaps the tern: "abnormally obsessed with the accumulation of small round (usually) objects" along with "the desire to spend large amounts of cash on seemingly small items" would be a better description. As for me: I admit it: I am weird. (Just ask my wife & kids).
