Quote:
Originally Posted by Edward Tinker
Sorry, I don't get your analogy? It is essentially the same thing, but from a different disagreeing point. Why I don't get it is that there are a lot more lugers at $800 to $1000 than at $500, that actually do SELL; and whether in a recession, depression or high roller times, it is the buyer who is buying, so Davids analogy makes more sense to me.
Those folks who ask too much (just look at gunbroker), those sellers almost never sell at high end prices; unless a buyer comes along?
But there are always folks who want a luger and if I had 200 $500 lugers that were in nice shape, i could sell them all day long; but it is harder to sell 200 $1000 lugers, again, the buyer is the mix in the equation.
Ed
|
You SLIGHTLY misunderstand what I am saying.
Sure there are plenty of folks selling a Luger worth $1000 for $2500. And you are correct, that doesn't make it worth $2500 because there ARE people selling them for $1000. But if NOBODY is selling one for any less than $1000 then it requires a $1000 to get one (even if nobody has $1000 to do it or is willing to pay that much) then they are worth $1000 because that is what is needed to get one.
And by the same token, IF somebody shows up and starts selling them for $500 they suddenly become worth about $500 because you CAN buy one with $500.
The point I'm making is if everyone is selling them for $1000 but nobody is willing to spend more than $100 to get one, they are not suddenly only worth $100 because you still cannot BUY one for that price. To get one requires $1000.
When it comes to limited market items, the key figure is what is somebody willing to sell it for. And that determines it's value. This is also why some things are priceless, it isn't a matter of nobody can afford them, nobody is willing to sell it, even IF Donald Trump was willing to write the check.
So what the owners is willing to accept for it is the key point in determining value and worth, what a buyer is willing to pay is irrelevant if the owners doesn't "need" to sell it.
That also explains a lot of the gunbroker prices. Many of them don't "need" to sell it, they are "willing to sell it" IF somebody is willing to pay that price.
And again, IF somebody DOES need to sell it and are willing to take less than the going rate they will temporarily devalue every other similar item for so long as that situation persists. And if you get enough of them (as in the case of those cheap import Lugers years ago) you can drop the value of that item by half.