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Why are certain extremely rare coins cheap? ... (gold libertads and possibly others)
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<p>[QUOTE="medoraman, post: 1332749, member: 26302"]Its actually a very common misconception sir. "Rare" is always relative. No one pays for absolute rarity. A 1916d Mercury dime is not a rare coin in the grand scheme of things. However, versus all other dates, its very rare. Since the series is highly collectible, and this one date is by far rarer than all others, that is what makes the price high. Contrast that with your comparison. Yes, maybe just a few hundred were minted, but how many people are collecting by date? How common are other dates of the series? Its this relative rarity, along with demand, that will produce strong prices.</p><p><br /></p><p>Believe me, I know about collecting rare. If one or two more serious collectors start collecting some coins I do, prices could quadruple easily. In terms of absolute rarity, these coins are right at the top. However, since most have not ever heard of them, and of those who have many consider them ugly, thankfully there are only a few competitors for the few coins available. Rarity only equals high price IF there is demand. </p><p><br /></p><p>Having said all of that, by all means collect them. It really is cool to have coins that you can get relatively cheaply that are truly rare. You very well could be onto a gold mine in that some day maybe the premiums WILL go up due to their scarcity.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1332749, member: 26302"]Its actually a very common misconception sir. "Rare" is always relative. No one pays for absolute rarity. A 1916d Mercury dime is not a rare coin in the grand scheme of things. However, versus all other dates, its very rare. Since the series is highly collectible, and this one date is by far rarer than all others, that is what makes the price high. Contrast that with your comparison. Yes, maybe just a few hundred were minted, but how many people are collecting by date? How common are other dates of the series? Its this relative rarity, along with demand, that will produce strong prices. Believe me, I know about collecting rare. If one or two more serious collectors start collecting some coins I do, prices could quadruple easily. In terms of absolute rarity, these coins are right at the top. However, since most have not ever heard of them, and of those who have many consider them ugly, thankfully there are only a few competitors for the few coins available. Rarity only equals high price IF there is demand. Having said all of that, by all means collect them. It really is cool to have coins that you can get relatively cheaply that are truly rare. You very well could be onto a gold mine in that some day maybe the premiums WILL go up due to their scarcity. Chris[/QUOTE]
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Why are certain extremely rare coins cheap? ... (gold libertads and possibly others)
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