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<p>[QUOTE=&quot;GDJMSP, post: 1930882, member: 112&quot;]JB, have you ever read what it says in the Red Book itself about the prices listed within the Red Book ?</p><p><br /></p><p><i>&quot;Coin values shown in this book are retail prices figured from data supplied by listed contributors .......&quot;</i></p><p><i><br /></i></p><p>If you look in the front of the Red Book you&#039;ll find a list of those contributors, they are coin dealers from around the country, there&#039;s about 50 of them. The publisher of the Red Book asks those dealers what their current prices are for the given coins. Now not every dealer has ever coin, so the data provided is somewhat limited by that. Dealer A may provide his price for a dozen or so, dealer B a dozen or 20 more, and so and so on.</p><p><br /></p><p>What you also have to realize is that it is extremely common for dealer A to be asking $250 for a given coin in a given grade. While dealer E is asking $150 for the same given coin in the same given grade. As a general rule, price guides, all of them not just the Red Book, will only report the highest price they receive when they gather their data.</p><p><br /></p><p>Now it&#039;s pretty easy to see where the flaws in that system are and why the reported prices do not reflect reality.</p><p><br /></p><p>The CDN however gathers its reported prices from the aggregate electronic dealer networks. To find the current price of a given coin in a given week the CDN takes the highest Bid being currently offered on the networks, and couples that with the lowest Ask currently being offered on the networks, from all of the dealers in the country. (not just a few of them like the price guides do) And that establishes the Bid/Ask reported in the weekly CDN.</p><p><br /></p><p>In simple terms, the price guides use the highest asking price they can find, while the CDN uses the lowest asking price they can find.</p><p><br /></p><p>At which price would you rather buy coins ?[/QUOTE]</p><p><br /></p>

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