"Rare Coin" Definition.

The Sheldon rarity scale is the one that I think most people are thinking of when they talk about rarity. PCGS came up with their own and it's quite a bit looser than the Sheldon scale but it's also a lot more detailed. I kind of like it actually.

http://www.PCGScoinfacts.com/Conten...arity&s=4520

There isn't really any definition on what is considered rare. I think much depends on what it is being compared to. Patterns as a whole are rare when compared to federal issues but within the specialty, a pattern probably needs to be in the single digits to be considered rare. The 1909-S VDB is common as far as key dates go but rare in the context of lincoln cents. The 1884-S morgan in MS is rare compared to itself in lower grades.

I am not sure if I am in total agreement with that one. Suppose a particular coin was released in a quantity of 5,000 and there are 5,000 people each owning one. Let us suppose that most of those 5,000 people do not want to sell that coin. That coin is not rare, it is simply not widely available and hard to obtain.

Now let us suppose that I make three identical sculptures. They are rare. There are only three like that in the world. I am not famous and they are not very well made and I have been trying to sell them for cheap for many months but no takers. That item is extremely rare, but openly available and not sought after.

I agree that supply and demand determine price and actual value, but I do not think that supply and demand, in and of themselves determine what is or is not rare.

1. A comparable chart on the rarity scales (link below).

2. Key point that this author makes is "The Rarity Scales ONLY MEASURE KNOWN PIECES EXTANT; they do not address quality."

http://www.thehistorybank.com/persp...may10_4.html

There are many examples of easy to find coins that have high demand and high prices - 1909S VDB cent, 1916 SLQ, High Relief Saint. These are abundant and have high demand. Not rare at all. Then there are R7 patterns (3-4 examples known) that bring $3-$4K at auction, but you only see once every few years. If they ever get into strong collector hands, it could be a decade before you see one again. But nobody collects these anymore. There is tons of exonumia that is extremely rare that nobody collects, political buttons and the like. If you are looking for something specific, it could take a long time for these.

For me, rare means that it will show up for sale no more than three times a year for world and ancients, and no more than 10-15 times per year for US (much more buying and flipping going on for US than any other market).

If you look at "rare" key date coins, you will see that there are often hundreds of them available at any given time.

My answer is pretty simple, or so I think.

It starts with the mintage for one coin for a specific year. This is an absolute number, measurable. Then I add a time factor. A lot of coins get damaged beyond repair or lost over the years. Has the political entity been involved in a war or a situation where coins or precious metal has been confiscated on a large scale or structural basis and affected this coin? Add an extra rarity factor.

What you end up with is an estimate of how many of a coin are still available today. To me, that determines the rarity factor.

The value of a coin is a completely different thing. What I have observed over the years is that rarity might not even be a factor. Demand is a bigger factor. For example: I have a few Maltese mills coins with a mintage of way less than 5000. I found them in the junk bin at my coin dealer. No one wants them. I have a Norwegian coin of which 25000 pieces were made and a lot got lost during War and due to programs where silver coins were traded in for other money or assets. The price is about $100 nowadays, there might be about 2500 left, maybe less. Another sample is the Norwegian 2 Øre from 1968. It's a very hyped coin and only appeared in sets. Mintage is around 3500 pieces. They sell for $3000 a piece. So, that should clarify why to me value has nothing to say about rarity.

Additionally, I found that the value of a coin is completely subjective and much bound to the geographical data connected to the coin: the closer to home, the higher the price (and the bigger the awareness and trade, usually). A coin is worth what one wants to pay for it, with the absolute minimum being usually either face value or melt value.

Rare - Unable to find it at any price.