Friday, July 4, 2014

Rick’s Pedigree Coins – Placing a Value on Pedigree Coins – Another View


One of the benefits of having a Pedigree Coin blog is that I have been able to share ideas with other collectors with similar interests.  In doing so, one collector who prefers to remain anonymous, shared his methodology for evaluating or minimizing Pedigree premiums that is very interesting.  He actually refined it during his purchase of a Saddle Ridge gold coin and found that it consistently held.

1.)    He classified the coins by date/mintmark.

2.)    He then classified them into MS grades.

3.)    He developed a base cost for those date/mintmark/grades (ignoring pedigree premiums).

4.)    He then calculated the premium being asked for each grouping.  (Subtracted the base price from the asking price.)

What he found was that as the base value of the coin increases because of MS grade, the premium value (spread) decreases.  I thought this was a very interesting discovery so I went back and looked at several of my recent sales/purchases in the Fitzgerald and Cortez collections and found this phenomenon to hold.
 
I thought this finding was interesting and wanted to share it with other Pedigree collectors for what it is worth.  It is not an absolute, but it is another way to look at Pedigree premiums.

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