Marketplace Availability Premium

[lehigh96]

Collectors will pay a premium in relation to the established price guides for a number of reasons: attractive toning, PQ surfaces, slab generation etc. Occasionally these premiums can reach what seem to be ridiculous levels. As an example, another thread was posted earlier tonight about a black slab Morgan that sold for over 50X price guide.

 

NGC 1.0 (black insert) sold on Teletrade today

 

And while a multitude of collectors had a wallet fight over black plastic, I was pondering how much to bid on the lot that interested me in the Teletrade sale.

 

Jefferson Nickel 1952-D NGC MS67

 

Here is the problem. Numismedia lists the wholesale value of this coin which has a population of 42/0 at $130. I searched both Teletrade & E-Bay and neither has ever offered a 1952-D in MS67. Heritage has only ever offered 2 in this grade.

 

Heritage 1952-D Jefferson Nickel Auction Results

 

The last one auctioned by Heritage sold over 8 years ago for a price of $48.30. Obviously the coin in the current auction was going to sell for far more than that leaving the only previous auction archives useless. In essence, the only way to price this coin was to trust the established price guide. Based on the images provided by Teletrade, the surfaces & strike look solid for the assigned grade but the luster is a question mark and the eye appeal seems rather mundane.

 

I have been searching for a suitable 1952-D Jefferson Nickel for almost two years. This is the first one that I even considered bidding on or buying. Before I placed my bid, I asked myself this question. How long am I willing to wait for another suitable 1952-D Jefferson to hit the market? Then I thought, how much am I willing to pay not to wait that long? Answer: I bid 2X the Numismedia wholesale in order to not lose a coin that seldom hits the market. Now I got the coin for exactly the Numismedia wholesale price, but I was willing to pay an availability premium of 2X price guide.

 

Has anyone else ever paid a premium for a coin based solely on availability? I would love to hear other stories of premiums paid due to marketplace availability.

[lehigh96]

After doing a little more research, it gets scarier. The following NGC registry participants currently have a 1952-D NGC MS67 Jefferson Nickel in their sets.

 

 

• Specialty One (Rank #1)
• Mark Bressler (Rank #2)
• Eagles Nest (Rank #6)
• Gilmore (Rank #8)
• Seasider (Rank #9)
• Nickelhead (Rank #11)
• Daniel Beavers (Rank #12)
• Doug Sheriff (Rank #14)
• GeraldM (Rank #16)
• NY Nick (Rank #26)
• Robert28 (Rank #30)
  

 

That essentially drops the population from 42/0 to 31/0 unless one of the members listed above sells their collection.

[physics-fan3.14]

Well, I've paid very strong prices for my PL coins. For many of these, they come to auction once every few years. Some of my coins are unique to the series (such as my half cent). For these, I am willing to pay very strong prices.

 

I run into the same issue for FBL Franklins - but these are traded much more frequently. Thus, I'm less willing to pay a significant premium over their normal value, except in rare instances.

[leeg]

A couple years back when I was heavy into collecting early Lincoln Cents I would pay "stupid money" for unique, one of a kind, coins.

 

Here are two that fall into my "stupid money" category:

 

 

 

[coppercrazy-migration]

Stupid money maybe, but those sure are a couple of beautiful Lincoln's.

 

A couple years back when I was heavy into collecting early Lincoln Cents I would pay "stupid money" for unique, one of a kind, coins.

 

Here are two that fall into my "stupid money" category:

 

 

 

[e1cnr]

yes, when the population says there is 30 or so, and you have only seen a couple in the last 5 years on eBay, Teletrade, and Heritage

 

you need to reach if you really want it

and sometimes you get it for far less than you were reaching

[TonerGuy]

Well, I've paid very strong prices for my PL coins. For many of these, they come to auction once every few years. Some of my coins are unique to the series (such as my half cent). For these, I am willing to pay very strong prices.

 

I run into the same issue for FBL Franklins - but these are traded much more frequently. Thus, I'm less willing to pay a significant premium over their normal value, except in rare instances.

 

You have a PL half cent ? Wow... any pics or a link to one ?

 

As for the original topic... try finding a 36-D or 37-S Washington in AU condition at any show you go to.. at the larger shows there might be 2 in the room. In the smaller shows... forget it. You can find 32-D and 32-S all day but not one 36-D and when you do its an MS64 and $1000+

[physics-fan3.14]

Yeah, TG, I've shown it before. Here it is in my Registry set: http://coins.www.collectors-society.com/WCM/CoinView.aspx?PeopleSetCoinID=1101949

[Kurtdog]

A couple years back when I was heavy into collecting early Lincoln Cents I would pay "stupid money" for unique, one of a kind, coins.

 

Here are two that fall into my "stupid money" category:

 

 

 

Leeg, I'll plead guilty to that, myself. Hey, I'm frail. Lovely coins! (thumbs u

[TonerGuy]

Yeah, TG, I've shown it before. Here it is in my Registry set: http://coins.www.collectors-society.com/WCM/CoinView.aspx?PeopleSetCoinID=1101949

 

Hard to believe it isnt a proof ! Beautiful coin ! Is it a one of a kind ?

[RWB]

People buy, or will pay more for, something they perceive they want or need. Advertising, marketing and sales....

[physics-fan3.14]

Yeah, TG, I've shown it before. Here it is in my Registry set: http://coins.www.collectors-society.com/WCM/CoinView.aspx?PeopleSetCoinID=1101949

 

Hard to believe it isnt a proof ! Beautiful coin ! Is it a one of a kind ?

 

I've shown it to several copper experts, and they definitely said it is not a proof. PL early copper is extremely rare, and this is the only Braided Hair half cent graded PL.

[mkman123]

that pl half cent is awesome looking!

[Hard Times]

I have had to pay over the published market values in the Coin World, Numismedia, and PCGS price guides for bust dimes in the last year. Granted, I select what I believe to be choice, minimally to not messed with, nicely toned examples to bid on. But these just don't seem to be that available, I am guessing that most of the examples are tied up long-term in specialized collections. Hence most of what I see come to the auctions are not that great these days, I am thinking most of these are low-end or problem coins for the grade that folks want to unload. So when a good one comes up, bidding is aggressive for the few of us interested in these. Maybe a result of the hard times right now? People won't sell their quality examples without a ramp up in pricing. Probably the same for other early series. Thoughts?

 

Best, HT

[shorecoll]

I pay availability premiums all the time for mid-grade barber halves, several semi-keys are mostly in strong hands and you may not see another coin in a particular grade in several years, and if that's in a public auction you'll be battling the other 10 guys in your same situation.

 

Very nice half cent.

[Walkerfan]

In short, I WOULD pay an availability premium for a PQ coin, esp. a key date. in the current market or in ANY market.

[BillJones]

I have paid what many would call big, stupid numbers for early coins a number of times. This 1797 dollar is graded EF-45. I paid closer to the AU price for than than the EF price simply because it is perfect of the grade. Virtually no marks, original surfaces and great eye appeal.

 

[World Colonial]

I do not consider price guides reliable generally, though maybe they are more so for US coins. Krause is worthless for the coins I collect.

 

As for availability, I agree that there is a premium over what might be expected based upon its scarcity simply because current owners are not offering it for sale. But I would not expect less expensive coins such as a 1952 MS-67 Nickel to sell on a venue like Heritage often either. The same is true for the coins I collect in that price range.