[meteorite-list] Meteorite Pricing/Values

From: dfreeman <dfreeman_at_meteoritecentral.com>
Date: Fri Dec 23 20:00:50 2005
Message-ID: <43AC9D83.3060308_at_fascination.com>

Hola Doug, Merry Christmas List;
While we are discussing "worth", it is subjective for the most
part....The Barret Jackson Car Auctions that most of the males here have
oggled at, will show that "worth" is in the eye of the beholders wallet.
 Even when number of a certain year of hot car is known, the exact
number with a 400 +HP blaster motor of the day, the number of wrecked or
lost models known or not known, it is still what the buyer is willing to
pay that really and finally dictates the price. Many times only time
will tell the value of the purchase, as with meteorites. Value would be
realized when the new owner sells it. Did he make a buck, loose money,
or sell for same price.
Faries and struck ones,
Dave F.

MexicoDoug_at_aol.com wrote:

>biscuit_40 writes:
>
>
>>"It's only worth what you can get for it." Not
>>profound but to the point.
>>
>>
>
>
>
>>JUST my opinion,
>>
>>
>
>
>
>>Thomas
>>
>>
>
>Hi Thomas,
>Glad you said it was just an opinion - of personal value at that - which I
>appreciated it now feel like rambling one last time this year. On this issue
>of economics and meteorites, they in MY OPINION are immiscible. ...Keep in
>mind that a commercial appraisal ought to be a three-pronged professional
>service and the three values differ reflecting the different values to different
>parties..."market" (Which is divided into 'under duress/wholesale' and
>'retail/I cut you no breaks'), replacement value, and rental value.
>
>So, if over too much spiked eggnog I shout out too loudly $1 for Steve's 3/4
>ton pallasite, while the rest of the bigwigs remain silent, and no one else
>had made an offer yet - then is that what is it worth at the moment? I
>completely agree with the comments by others that there is sadly not enough focus
>on the individual attributes of meteorites and this drive to commoditize them
>as you and others are implicitly accepting.
>
>Your nice Dad had "Worth" in a subjective definition that worked for him.
>Comparisons with coins and stamps have got to be the most misleading
>comparisons that cloud this whole meteorite worth issue. Not calling the definition
>wrong applied here, just, too subjective and personal to be useful. I agree
>that there is way too much hype out there, but caveat emptor and taken with a
>grain of salt, all this shameless hype is better than with no hype to wade
>through at all.
>
>http://cgi.ebay.com/Meteorite-SEYMCHAN-PALLASITE-olivine-dealer-invest-HUGE_W0
>QQitemZ6588528385QQcategoryZ3239QQrdZ1QQcmdZViewItem
>
>Here's an apparently quality pallasite (not oriented) with a lower informal
>TKW not being especially marketed ... and the price is $345 per kilogram
>($0.35 a gram). By this measure Steve's rock is worth $225,000.00. Using
>Greg's logical and good comments, it oriented, but you buy more maybe you get a
>better deal. So it could be a wash. Then there is the little detail: This is
>a one-of-a-kind piece. How much is uniqueness worth? That would be
>priceless by many definitions.
>
>Anyway, I'm sure a Las Vegas Casino would be happy to buy the celestial King
>Kong Pallasite for a cool half of a million in cash and put it on display as
>the nose-coned centerpiece with ringed planets in black light all gleaming
>and jeweled up on the gambling floor. And if I get to go to Las Vegas
>sometime, guess which will be the casino I go to. The casino owner meanwhile is
>thinking...mmmm. "My casino is the most kick-ass casino and the space station
>themed room has a new meaning in my promotional literature"... gamblers can
>loose their money, or win the jackpot, standing on the jewel laced center of
>another planetoid....and my casino financial controller dude says NPV of the
>meteorite is the cash stream of all the extra profit we realize for having this
>awesome space piece...at a piddly $50,000 annually and a 10% rate of return
>that would practically justify the purchase hands down. Then there is the
>salvage value. After 20 years, it might have a salvage value in today's terms
>of $100,000 more. At a million it could still be a deal - you'd have to run
>the numbers as a good appraiser would have to do in this case. So we could
>speculate until we make bigger fools of ourselves with rocks we could never buy
>and only are dreaming of having. The flip side of your Dad's subjective
>definition in the case of this is not what you can get for it ... it is what the
>most motivated buyer is willing to pay. But then economics reminds us that
>if supply is one unit, you can't put a price on it until you check if supply
>of one meets demand of one. Then you have a value. Or you might as well
>define the theoretical value as the least amount the supplier is going to accept
> for a piece - if that piece has no replacement. All meteorite pieces are
>unique. It is subjective as to when one will accept a replacement. So maybe
>they actually have no true value. The junk dealer, if you could find one
>willing to accept it and transport it to him might pay $200 for the Kansas
>specimen, and another way to calculate the value is put it on display and charge
>admission like in Oregon some time back...let's see, at $5.00 a peep, 20
>people daily 300 days annually, no overhead, that'd be $30,000 a year - but with
>the overhead and these projections, you can get an idea for what the value is
>by this method. Finally a good appraiser will also check into weather the
>object can be rented, or replaced, too. The replacement value of Steve's
>meteorite is determined by whether another will be found in the near term - if not
>it's priceless by this method of appraisal. And the rental value, well time
>to put a few feelers out...
>
>With all the subjectivity, it's a bunch of circular reasoning. Meteorites
>are not a commodity and never will be. Anyone considering them a commodity is
>probably missing out on the joy of having a collection. They are priceless
>and worthless at the same time...
>
>On the "ONE DOLLAR" offer I'd pay for reasonable shipping of course:), but
>it expires tomorrow night at which point it becomes priceless or worthless
>again according to your admittedly not profound definition, until another public
>offer comes along...
>Christmas greetings!
>Doug
>Aspiring IMB Buyer's Representative to the King
>
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>
>
Received on Fri 23 Dec 2005 07:59:47 PM PST