Does rarity help or hurt value?

[Leon]

Demand increases value, rarity doesn't.
.

[vansaad]

Demand with rarity can result in very high values, but also a more volatile and illiquid market.

[Casey2296]

I like my cards like I like my Steak...rare.

[insidethewrapper]

Demand is the most important. With low supply then you really got a great item.

The T206 set is so popular because it has much more supply than the other similiar items of that era, so it is possible to collect most players . So demand and supply makes this a great set. Though I am getting tried of seeing all the T206's in every auction catalog that comes in the mail, page after page.

[benge610]

Originally Posted by Casey2296

I like my cards like I like my Steak...rare.

I second that, Phil.

Ben
"I love baseball history backstory; especially when it involves cards."

[JollyElm]

Unfortunately, there are now other types of rarity, too.

A card in any way, shape, or form can be a rarity in and of itself, and nearly impossible to ever find, but now we live in the graded world. A thousand of the exact same 'regular' card be immediately located with a click of the mouse in a thousand different places, but say a certain grade of that card has an extremely low POP. That introduces a completely new version of 'rarity' to the equation and blurs the lines even more.

[LincolnVT]

I’ve always been a fan of having extremely rare pieces of players that are household names. I’ve heard the saying that “some pieces are just to rare for their own good”…this is generally followed by a low ball offer…hold on to the top tier HOF rare stuff…over time you will either continue to enjoy having something that very few can own or be able to name your price.

[Exhibitman]

Originally Posted by LincolnVT

hold on to the top tier HOF rare stuff…over time you will either continue to enjoy having something that very few can own or be able to name your price.

I've always been drawn to rare/obscure issues for just that reason: when someone wants the card, it's my way or the highway.

[Exhibitman]

Ahh, the age-old conundrum: rarity v. obscurity. Leon is right: demand generates value, not rarity. Demand + rarity = $$$$.

If you own a rare card and you want to generate demand for it, probably the best way to do that is to get PSA to slab the card and add it to the player's registry (assuming the player has one). Then the registry participants will chase the card to finish their sets. Another way to up the profile of an obscure rarity is to publish information on it in the hobby press. Collectors cannot add a card to their want-lists unless they know it exists.

[darwinbulldog]

Well it's the ratio of supply to demand, and rarity as a rule (actual rarity, not T206 "rarity") results in obscurity and reduced demand. Whether it reduces it enough to lower the price is -- again -- just a function of the supply/demand ratio.

Generally I'd say if it's a cataloged issue the rarity boosts the value, since there are always going to be some type collectors looking for any particular cataloged type they don't have yet, but for every cataloged rarity out there there are several uncatalogued obscurities that won't attract bidders unless it's a card of a major Hall of Famer (or Shoeless Joe).

[doug.goodman]

Just about everybody on the board owns items that are "more rare than ____" but lack of demand keeps the price down.

Rarity is a part of the equation, certainly, but demand is the important part.

Demand can be two guys vying for an item that doesn't come up often, or demand can be thousands of people wanting an item that there are thousands of copies of, it doesn't really matter.

Rare can mean there is only 1, rare can mean there are thousands, it all depends on demand.

[Leon]

This is rare, and it's Ruth, but it's not that valuable relative to other more mainstream Ruth's..
It is on cardboard stock and is 5 x 7....so size could be another reason for less value.

I wish rarity equaled value.
.

[doug.goodman]

Originally Posted by Leon

This is rare, and it's Ruth, but it's not that valuable relative to other more mainstream Ruth's..
It is on cardboard stock and is 5 x 7....so size could be another reason for less value.

I wish rarity equaled value.
.

Nice one Leon.

I also have a rare, but not that valuable Ruth, this one from the Blum's Baseball Bulletin set :

[Rhotchkiss]

Originally Posted by Leon

This is rare, and it's Ruth, but it's not that valuable relative to other more mainstream Ruth's..
It is on cardboard stock and is 5 x 7....so size could be another reason for less value.

I wish rarity equaled value.
.

Leon, what exactly is that? Clearly it is associated with “Babe Coming Home”, but how was it distributed, exactly when, and is a post card?

[nolemmings]

Originally Posted by darwinbulldog

Well it's the ratio of supply to demand, and rarity as a rule (actual rarity, not T206 "rarity") results in obscurity and reduced demand. Whether it reduces it enough to lower the price is -- again -- just a function of the supply/demand ratio.

Generally I'd say if it's a cataloged issue the rarity boosts the value, since there are always going to be some type collectors looking for any particular cataloged type they don't have yet, but for every cataloged rarity out there there are several uncatalogued obscurities that won't attract bidders unless it's a card of a major Hall of Famer (or Shoeless Joe).

This.

[Fred]

Rarity can hurt the value if the issue is that rare and not widely collected.

Rarity helps the value of a card if many people want it, even if it is a rare issue.

[Fred]

Originally Posted by Fred

Rarity can hurt the value if the issue is that rare and not widely collected.

Rarity helps the value of a card if many people want it, even if it is a rare issue.

Need to change the above sentence to:

Rarity helps the value of a card if many people want it, especially if it is a rare issue.

[sreader3]

Originally Posted by darwinbulldog

Well it's the ratio of supply to demand, and rarity as a rule ... results in obscurity and reduced demand. Whether it reduces it enough to lower the price is -- again -- just a function of the supply/demand ratio.

This nails it. Rarity means low supply but if low supply is characteristic of a set it stifles demand--and it's the supply/demand curve that sets price. T206 Wagner is in the price "sweet spot" because it is in short supply relative to the huge demand arising from hobby lore and its depiction of a legendary player in a widely collected set.

[Topnotchsy]

An important point that has been touched on to a degree by a few posters (but may not have been fully explicated) is the way that with collectibles, supply (and other factors that don't necessarily play a role with traditional items) can play a huge role in demand.

Set collectors (for example) will rarely chase a set that is basically impossible to achieve. The size of the group of collectors chasing the set is likely constrained by rarity. If there are only 2 copies in existence of each card, having more than a few collectors chasing it would be very tiring indeed, and like lead to some collectors dropping out. Sets like T206 (outside of the big 4) and 1933 Goudey have enough copies for hundreds (thousands?) of people to collect the set, while still being somewhat rare.

[oldjudge]

Value is a functiion of supply AND demand. If 10 people want a particular card and there are 100 copies available it will be worth less than if those same 10 people wanted the card and only one copy was available.

[mrreality68]

Originally Posted by Leon

Demand increases value, rarity doesn't.
.

+1 agree and sometimes being rare also hurts. Something might be desirable but if it is to rare and does not come for sale/auction often then buyers do not know the value or perceived value and either may not bid or buy it or only go for a level that they are comfortable with which might be less then the seller wants to sell it for.
But it is as always worth what someone is willing to pay and what someone is willing to sell for

[BobbyVCP]

Originally Posted by Leon

Demand increases value, rarity doesn't.
.

Nail on the head...