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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
 Posted - 03/17/2010 : 18:32:50
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This might be a silly question but the thought came into my head today. Don't ask me why. I think about weird things :-)
If someone had a semi-rare coin where only several thousand were in existence, could they manipulate the value by buying up as many of that coin as possible and holding on to them?
There would be fewer coins on the market place.
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SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
Edited by - PennySaved on 03/17/2010 18:33:11 |
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fb101
Administrator
USA
2856 Posts |
Posted - 03/17/2010 : 18:38:07
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| If they had the kind of cash to keep that up, it could work, but the price rises as the supply drops. In the end, they might not make out as well as they might expect. IMO |
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Wanderer
New Member
Canada
16 Posts |
Posted - 03/17/2010 : 20:06:12
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I think that is quite an interesting question, already discussed a bit here. (You must be logged in to see this link.)
Some of the thoughts were:
- finding enough of coins to get a decent percentage, ie how many are actively being traded versus sitting in a personal collection or safe deposit box somewhere
- if you can actually get most/all of the coins, maybe the demand for them isn't that great and you are stuck with every example of an unsellable coin
- what if your plan gets out and people refuse to buy from you or sell to you
- what if a huge cache is found
In the end, I think I'm with the people who thought it probably wouldn't work out in the long run.
However, I do love the idea of trying to corner the market. Some local coins (tokens, commemoratives, etc.) have wonderfully small mintages, and not a huge demand. One coin I own has a mintage of 12, and another is one of only 15, yet the prices were very reasonable. |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 03/19/2010 : 14:51:07
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Oh I missed that tread, thanks Wanderer.
Just out of curiosity, what coin do you have that only has a mintage of 12? I wonder how hard it would be to find the other 11 to buy. |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 03/19/2010 : 16:58:36
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Some of the 20 cent and half dimses only had a few made.
I really don't think it would make a difference. In 1980 large numbers of silver coins were melted when silver was near $50 an ounce.
There has been discussion in collecting circles since why when some coins were produced in certain numbers and have such low prices why are none found. Most of the coins rarity value comes from how many people percieve the shortage. It took over 100 years for 20 cent pieces and the half dimses to be rare.
If you want a coin to be have a high price it needs have a demand as well as a controlled supply. The 2001 Buffalo Dollar is not rare, but it is in demand. The San Fransisco Mint dollar is not rare but there is no demand.
IF you try to manipulate the market you might get lucky, but then again more likely you will go broke, look to the $50 and ounce silver and the Hunt Borthers. |
Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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JWRAY
Penny Collector Member
USA
378 Posts |
Posted - 03/22/2010 : 16:11:30
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I have often contemplated this exact topic. Who knows what the real answer is. The hardest thing to figure out is how many of that coin actually still exist.
For instance the 1909 S VDB penny. 484,000 reported mintage. But how many of those coins are already completely gone, lost, or destroyed in the past 100 years? How many are sitting collecting dust in some bank vault someplace? How many are truly available for purchase?
I guess you would have to target a coin with an even lower mintage for cornering them to be realistic, but it is just so hard to figure out how many still exist. |
MOVING SALE!!! Selling Copper Cents 1.4 shipped - in limited quantities PM me and we'll talk. |
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Kurr
1000+ Penny Miser Member
2906 Posts |
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Wanderer
New Member
Canada
16 Posts |
Posted - 03/22/2010 : 19:13:59
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quote:
Would not that be the 1943 in copper?
I wish!
It's actually a local commemorative token. When a city issues a "good for One Dollar in trade" as a promotional thing, sometimes they will do a smaller mintage in a higher quality material, or plated. In my case, they did a run of 12 in solid silver.
Value? Probably a bit over melt, as there isn't a great demand.
Finding the potential other 11? Maybe the local coin club would have a few owned by it's members, maybe a couple have been melted - I would love to know! |
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Be Nice to BankTellers
Penny Sorter Member
USA
77 Posts |
Posted - 03/22/2010 : 22:59:46
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| Try it with the 1913 Liberty Head nickel and we can all see how it plays out. |
Grandpa always told me, "Back in 1964..." I listened.
Selling copper cents @ $2.50/lb. + shipping. |
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Manipulation of coin value
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