“Want List” Sites Can Make the Rare Coin Market More Efficient
This article explains how rare coin want lists can enhance the rare coin market when publicized and centralized, such as on an active website, for all buyers and sellers to access. It is understood that supply and demand dictates price. While the supply of coins is relatively known, the demand is not. A central website “exchange” providing this information will help buyers and sellers determine the demand side of the rare Coinmarketcap market.
Before explaining how a want list site can enhance the rare coin market, I will define what a market is and discuss the key elements that make a market efficient. This background information should prove helpful in understanding how the rare Coin Market Cap works.
The definition of a market is the process through which buyers and sellers connect to aid in the exchange of something. While buyers and sellers often are connected via a brick and mortar storefront, a physical location is not required for a market to exist. A “market” merely facilitates the exchange. An electronic exchange brings buyers and sellers together, just like a brick and mortar storefront. In addition, regardless of whether the market is physical or electronic, the market itself need not own the items being traded. Its purpose is to unite buyers and sellers and to facilitate transactions.
Most collectors will agree that the market for rare coins is well established and efficient. But what is it specifically that makes it so? Compare the rare coin market to the market for collectible buttons, for example, and the differences are clear. The rare coin market has many characteristics which are lacking in the collectible button market.