Coin Supply and Coin Demand Discrepancy

Everybody thinks that if you get a rare coin, itThere are a number of reasons why. Some
should cost a lot because it's worth a lot. So ifreasons could be: Nobody wants to grade a
you buy rare coins today, it will definitely becommon coin, the coin series is not worth that
worth more in the future. And the rarer amuch, or the series is not that popular. But
specimen is, the more it will be worth in thewhatever the reason, it shows that some coins
future. But just because it has a low supply doesmay not be as rare as it seems.
not mean that it will have a high demand.The last reason is because of popularity.
There is a huge discrepancy in the supply andSometimes one coin series is more popular then
demand. Many commodities out there experienceanother coin series. So even with a higher
stronger demand when their supply becomesmintage, one key date from a series could be
limited. This maybe true with many products andworth more then a scarcer key date from
commodities, but not with numismatics. Not allanother series. There are many reasons why a
rare coins have strong demand, regardless of its'coin is more popular or less popular then another
supply.series. One simple reason may be because of eye
The first reason why some rare dates are notappeal. Some coins look more beautiful then other
valuable is because of low interest within the coincoins. So they become more popular then the
series as a whole. Low interest means lowuglier coin series. Or sometimes a coin series was
demand. There are lots of coins out there thatjust too short. It was not struck long enough to
are so rare, that they only show up every onceattract enough collectors. Whatever the reason, a
in a while. But because there aren't too manycoin's popularity greatly influences a coin's demand
collectors for that series, they don't sell that well.and value.
We can only say that collectors are moreClearly the supply and demand graph is not
interested in other coin series "more" then thatperfect when we are talking coins. So the next
particular series.time you are evaluating a coin before you buy,
The second reason why some rare dates are notremember to take everything into consideration
in demand is because some coins are not as rarebefore making your decision. Don't base it rarity
as they may seem. Sometimes a coin has a veryalone. I think that popularity, scarcity, and eye
low population. But its' low population does notappeal of the coin should be the first things that
make it rare. The only reason why it's populationcome to mind. But, never think that demand
is low is because nobody wants to grade the coin.always goes up because of low supply.