What is a Coin Worth?
I guess the Answer is it Depends on the Buyer
In a recent post wdrob brings up the interesting question as to the value of a coin. His argument is that selling a coin below the Grey Sheet value reduces the overall value of a coin. This is probably true over the long term. Of course the reverse is also true. I have seen many sales of high grade Roosevelt Dimes go above the Grey Sheet value. Such sales would over time likely raise the Grey Sheet value. In the end isn't the Grey Sheet value simply a reflection of buyer's demand for a given coin in a given condition?
I would also argue that demand more than rarity determines the price of a coin. A good example are American Silver Eagles (ASE). Love them or hate them there is a big demand for the rarer ASE coins. For example NGC has certified over 19,000 2011 EAGLE REVERSE PF 25TH ANNIVERSARY ASE in PF 70 condition. This is not a rare coin yet it sells for $400 or more. Clearly demand is driving the value and not rarity. Some day when ASE become less popular the demand and prices will both fall as there will simply be too many ASE available. The same is true for any coin. In the end a given Buyer determinea the value. Coins in some sense are collectables but also commodities.
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