Why Do People Collect?
The value of things changed after World War II. Sugar, meat, gasoline, tires, and paper were all rationed for a long time. Copper is also hard to come by.
Copper was used in generators, motors, radios, and ammunition windings. During WWII, copper wiring was used in a lot more machines on land, in the air, and on the water. During the war, we couldn’t make enough weapons either.
But the US couldn’t make enough copper to meet the needs of the war. Who used a lot of copper at that time? U.S. Mint
In December 1942, Congress told the U.S. Mint to try out different pennies. Since 1943, most pennies have been made of steel with a thin layer of zinc to keep them from rusting.
After people had used 1.1 billion steel pennies, they didn’t like the change from brown to silver and the lighter weight, which made vending machines work wrong. In 1943, we stopped making pennies out of steel and went back to making them out of 95% copper and 5% zinc (until 1982, when we switched to copper-plated zinc).
During the one-year material shift, copper and steel planchets (round disks of metal that are ready to be stamped) were carried over to the next year. The 1943 copper and 1944 steel pennies were made by mistake, even though they were supposed to be taken away the year before.
In 1943 and 1944, the government made 40 copper coins and 35 steel coins. These 75 mistakes were rare among the billions and billions of dollars that were spent over those two years.
While helping the war effort, the U.S. Mint made a rare collectible coin.
After a few decades, a copper penny from 1943 is worth between $150,000 and $200,000, and a steel penny from 1944 is worth between $75,000 and $110,000. (depending on their condition, of course).
Like always, art is only worth what someone is willing to pay for it. Also collectibles.
Bill Simpson, who is a co-owner of the Texas Rangers, paid a record-breaking $1.7 million for a 1943-D copper penny in 2010 and $1 million for a 1943-S copper penny in 2017. With these two purchases, he now has a 1943 copper penny from each of the three U.S. Mints (the other being 1943-P, for Philadelphia).
It’s crazy to think that a coin with a street value of 1 cent could sell for $700,000. But we can’t think of a better way to explain how collectibles can increase in value and end up being worth much more than expected.
Rare doesn’t mean valuable. Prices for collectibles depend on a number of things:
Origin is the same as provenance. The quality and authenticity of a collectible are based on where it came from. So, the object’s history proves that it is worth collecting. Art provenance is the history of ownership from the artist to the current owner. Sales of art and collectibles depend on where they came from.
The story of a collection could change how much it’s worth. The rare 1943 and 1944 coins were made by accident during World War II, which added to their story. It makes it harder to figure out why it happened, unlike when mints make wrong coins by accident.
The collector-collectible bond is a very important thing. Because of how much an item means to them, collectors may pay too much for it.
How a collectible looks is important. All collectibles are judged by how much damage they have. Condition doesn’t matter for unique objects. When there are more than one of a collectible, like the wartime penny, the value goes up the better it is. Collectors take a lot of care to keep their collections in good shape.
The price of a collection changes depending on whether you own the whole set or different parts of it. Ultra-collectors like Bill Simpson like the hunt and want to fill their collections with everything. It takes more work to get rare collectibles. So, when a set is complete, its value goes up. It helps collectibles sell better.
Some people may not know what it means to collect values. Imagine if you could buy a property worth a million dollars with a rare penny. People who don’t know how rare the penny is would laugh at you.
Most outsiders don’t understand the value of collectibles. This is why. Collectors boost collectible values. The value of a collectible depends on how many people want it and how many people already have it. The story of the collectible depends on how many people want it (at that point).
Fine art collectors also recognize value. Every collector has to think about authenticity.
Let’s start with traditional art and collectors’ items to understand what NFTs are and how much they are worth. There have been fakes, forgeries, and other tricks in both fields. Comming Soon….