Quote:
Originally Posted by Mark17
Doesn't it make sense that the price of an asset, all things being equal (same asset, same grade, same TPG) will be lower if 10 are in circulation, rather than 5?
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I think that we're talking about different things.
The above does make sense, except for the demand side.
If there are 5 or 10 in circulation doesn't matter much if there are 100 people that really want one and can afford it. The difference between 5 and 10 may make a few people decide it's too common, but unless that becomes a big difference, the demand still far exceeds supply.
What I'm talking about is where that demand goes as the price increases.
If 100 people can afford a card at a particular grade, and there are only 5 of them, at some point, the people who can afford it a bit less will either stop wanting the card, or will accept that they can only afford the card in a lower grade. When the difference is big enough, someone who was borderline able to afford it in one grade becomes a major force driving price at a lower grade.
There are cards that I could afford when I started back in the late 70's, and back then I could have afforded a fairly nice one.
Enter grading and registries and the hobby expanding (Not necessarily all bad things) And now I would have a difficult time justifying even buying one grade 1 or A. (Most major rookie cards from the 50's, and most prewar HOFers from any set. )
The high prices for the top examples drive up the price of all the others. And in some cases, the price of different cards from the same set. (T206, 52 Topps... Both are fairly common, but sell for more than cards from tougher sets from the same era. )