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Re: Fw: Meteorite "worth"

Gregory and List,

Amen!!!, to everything you just wrote!  (Normally I would just say "right 
on," but since it is Easter Sunday, I thought give you an "Amen!")

I suggest that everyone reread the post again.  Understanding these simple 
concepts will help everyone understand artificial price controls (both from 
the selling AND buying sides) seldom work except for the occasional fluke, 
which most economists would even argue are too part of the equation.

I have always argued that meteorites are really only worth the going price of 
paper weights and door stops.  However, as far as a collectible is concerned 
I can't think of a better field than meteorites.  Few others collectibles 
have as much going for them as meteorites.  But of course all of you already 
know that, this is why you are here!  The only negative that I can see in the 
hobby is that not enough people know about it to make them as liquid as say 
coins or beanie babies.  But some people like the fact that relatively, there 
are few collectors.  

I have a piece of DaG262 up for auction at Christie's in London on April 15, 
and it is one of 100 lots.  The other 99 lots are basically scientific 
instruments and models.  They have some toy trains and model ships that will 
sell in the area of $100,000.  Are they worth it?  The items with "real 
value" such as old compasses and microscopes, are usually found in the 
catalog to be worth a more "reasonable" $5,000 to $10,000.  Are they worth 
it?  If you question it, reread Gregory's post below.

Steve Arnold



In a message dated 4/4/99 3:31:43 PM Pacific Daylight Time, Sharkkb8@aol.com 
writes:

<< 
 >.....the "price of gold", its "worth" if you will is not so much
 >defined by "demand" but by how much it costs to extract-
 
 Everything's worth is determined by supply and demand.  The cost of
 production/extraction is simply a key component of "supply".
 
 <<Meteorites, on the other hand are valued differently.  Mostly by rarity,
 >and demand.>>
 
 Well, "rarity and demand" is pretty much indistinguishable from "supply and
 demand".  Rarity just means the supply is limited.
 
 <<>And "worth" with regards to them is purely subjective-- there is no
 >intrinsic value to a meteorite, no matter how rare it is.>>
 
 Actually, I think economic "worth" is completely objective.  Sentimental
 or personal "worth" can be subjective.  There is no intrinsic value
 to a beanie baby either, but try to tell a collector that they are "worth"
 the 20-cents-worth-of-cloth they contain.  To YOU (and to ME, I might add!)
 a beanie baby IS only worth the cloth it's made of, but OUR opinion doesn't 
 really count as far as the prevailing prices are concerned, does it?  It's 
 the people
 who actually buy-and-sell who determine worth, not the folks who stand
 alongside and offer their subjective opinions.  
 
 << One thing I can say... If I do not think a meteorite is *worth* what
  >the other dealers are asking, I will lean on my subjective judgement,
  >and not buy it--- even if everyone else is in the "feeding frenzy" mode.
 
 And if the majority of other buyers out there don't buy at the specific 
 "asking" price, 
 then the meteorite isn't "worth" that price.   But if you are in the 
 minority, and
 there are plenty of buyers who WILL pay it, then, sorry, but that's the 
 meteorite's
 price.  You may not LIKE it, you may fervently believe that it's overpriced, 
 but
 if people pay it, if it's the "going rate", then that's what it's worth.
 
  
  >If everyone just sat back for a while everytime a new meteorite crops up,
  >then perhaps the true *worth* of that meteorite will be better 
established. 
 >>
 
 If a majority of buyers did not buy a new meteorite, the price would plummet.
 When/if more of them started to buy it, the price would begin to rise.
 If the meteorite became suddenly famous, or if demand became
 extremely high, the price would skyrocket.  And at any given moment along 
the 
 way,
 the average, prevailing price would be what the meteorite is worth at that 
 moment. 
 
 When Nininger was "doing his thing", meteorites could be had for a dollar or
 two a pound.   If you were to chart the "worth" of Canyon Diablo from 1900 
to 
 2000, most every year on your chart, the price would go up.  Can you really 
 decide that some arbitrary moment on that chart represents the exact value 
of 
 CD?   
 'You mention above the "true worth" of a meteorite.  Could you please tell 
me 
 the "true worth" of Canyon Diablo?  What about 50 years ago? 40? 30?  10?  
 There is really only ONE "true worth" for Canyon Diablo, the entire 20th 
 century?  
 
 Nobody like paying higher and higher prices for ANYTHING, meteorites, gas,
 food, insurance, baseball tickets.  But if people are willing to pay higher 
 and higher
 prices, sellers are going to charge them.  It's only if people STOP paying 
 them, that the prices will drop.  Steve, while I admire your strong stance 
 about meteorite prices, if enough people out there are willing to pay 
 exorbitant prices, then THEY are determining the "worth" of meteorites, not 
 YOU.  Frustrating, maybe, but true.
 Gregory
  >>

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