I have started to try to break down all of the economics behind the trading of coins and bullion. For example, I am working on an equation for the Morgan Dollar. So far ... R ( G ( .77 S + D + .64 R ) )) = market value of Morgan dollar, in which ... R = Rarity, in which the rarity factor ranges from 1 to 500 G = Grade of Coin, for now I have three grades, g, f, au, uncirc. S = Silver Spot Price, market spot. D = Denomination Value, face value. Within in grade, i have G at 1.0, f at 1.1, au at 1.18, and uncirc. at 1.33. Each one of these variables has a sub set of relevant variables fixed into them. I need to create a more accurate rarity equation than the one I have and I need to create a coin grading equation better than the one that I have. Let's do a for example. A non rare coin, grade g, with spot at 10. 1 ( 1 ( .77 (10) + 1 + .64 (10))) = morgan dollar value. Rarity is only level 1, grade is g, level 1, .77 x 10 is the intrinsic value of the silver within the coin. .64 x 10, which is spot, is the minimum historic amount of numismatic value already built into the coins. 6.4 when the coin contains 7.7 worth of silver is the minimum amount of collector appeal. So, 7.7 is silver, 6.4 is collector appeal, 1 is the denomination value built into the coin and rarity is not relevant to this coin. Grade was at a minimum and thus did not lift the value of the coin. From this I seemed to have found a simple way of linking vimax the Peace Dollar to the Morgan dollar, in that ... the Peace seems to constantly trail the Morgan, by 10 to 20%. I now that often in life, one thing cannot be straight line connected to another but the Peace dollar just seems to be a simple back up to the Morgan. I want to let some of you work with the vimax equation to see how it works and see how I can refine it. I'll post the rarity part of the equation and I'll make a better grading system for the coin.
