What drives the high value of Paulson chips? Rarity/Premium or actual manufacturing costs? (1 Viewer)

[Hokuto789]

Hi everyone,

I’m currently exploring the deeper economics of the chip collecting world. I have a question about the value of Paulson chips, and I’d love to hear your thoughts and opinions.

I actually own a decent number of Paulson chips myself, and I understand and appreciate their high value and incredible quality. There really is nothing like that clay feel and sound.

However, I’m curious about what exactly drives their premium prices on the secondary market.

Do you think the high prices are primarily driven by their rarity and the "premium/collectible status" (especially since they stopped selling to the home market)?
Or, is it because the actual manufacturing cost (compression molding, clay material, hand-placed edge spots, etc.) of a Paulson chip is inherently that much higher than other types of chips?

Is it a mix of both? Or something else entirely?

As an owner who loves these chips, I’m really interested in understanding the history and economics behind them. Looking forward to hearing your insights!

 

[ekricket]

People still pay big money for 60’s sport cars even though there are cheaper and more reliable models out there.

 

[doublebooyah85]

Supply & Demand like all products and the principle
of economics.

 

[BarrieJ3]

too much fake market manipulation to ever tell.

every chip is valued in a vacuum, compare and contrast and suddenly it makes no sense. Widely available rhcs go for $2+ while tons of semi rare or highly sought thcs go at $3+.

huge random upticks in pricing for very specific chip sets that weren’t necessarily rare, just people scoring by listing at the right time and scoring on either WW or one of the 5 mini WWs and suddenly everyone’s worried about underselling.

and now everyone holds for trade. A huge % of purchases on PCF are specifically for trade bait. The amount of times I’ve followed up with a buyer inquiring on if they don’t want them, and 9 times out of 10 the chips are available if I have what they actually want.

The forum is dreadfully boring. “Here’s mint LV chips” “here’s some nagbs” “here’s some wsop this or that” “here’s uber rare xyz”. Gone are the days of stories, crazy finds, eclectic journeys being posted. Because you have to protect your investment, your potential windfall. Stories and information are now only available in person, at meetups, or via text.

PCF is 99% marketplace, but a convoluted one at that.

Look at the % of threads that are classifieds in the past 10 pages. Look at the amount of people that vote in custom HoF. Look at the number of resources/galleries posted per month. Everything continually pushes further and further towards marketplace only. Yet, we remain a buyer beware with multiple well known pcfers engaging in shenanigans and theft, but don’t worry all because now we have PCF Rewards!

Now someone sell me an Aransas cash set so my whiny a*s can move on.

 

[BarrieJ3]

for a real answer that’s not an old man yelling at clouds, have a fun read:

https://www.pokerchipforum.com/threads/have-we-finally-reached-market-saturation.103252/

 

[Bacon Dad]

Greed.

 

[Booshme]

Greed.

I’m sure part of it, by some members, is greed. I think people also don’t want to take a loss on what they’ve bought, I’ve seen a few catch & releases staying bumped in hopes of recouping what was spent.

Observing the auctions, I’ve seen racks go for $100+ less than what’s being asked for in the For Sale section, at least for the less-desired / less-premium Paulsons. When it comes to selling, I think the forum is now more profit & loss motivated, apparently before people were really focused on building and sharing the hobby.

I think CPC getting back up and running will lower prices overall. I, personally, would rather pay $2-3 a chip and have it customized to what I specifically desire, rather than pay $400+ a rack trying to complete a set that doesn’t come around very often. Which is why I’m probably going to auction off my rack of mint IOC KC $5s lol.

 

[upNdown]

I think there are a lot of factors working together, some of which you mentioned. Condition is a huge factor. Think about all the chips people are going crazy for these days - tigers, agave something, Chinatown whatever - they’re all brand new mint condition. They’re inferior to older chips in many ways but in this market, condition is king. When the Chiproom buys out a casino and sells us the chips, the unused secondary chips sell for around twice as much as the casino-used chips. A lot of experienced chippers stop buying used chips all together.

 

[Gus]

As a relative newbie here I see collecting as being either singles or playable sets, and then pricing is an esoteric mix of:

-Provenance
-Condition
-Playability (for sets, appropriate breakdown)
-Aesthetics (some chips and inlays are superior)
-Rarity
-Market consensus re: holding value (willing to pay more if it seems resale value is high, compare Tigers to custom CPC)
Manufacturer (Paulson being most desired here on average, and especially compared to casino grade plastics)
Age

Cost to manufacture is only really taken into account for sets you could buy yourself. Which includes both CPC and TINA and any generic chip. This gives you a buy-new alternative to an existing set (even if it’s in mint condition)

On top of all this there’s some insider baseball that comes with any small but passionate community. Preferences indecipherable by mere forum browsing, unlocked perhaps after many a fine whiskey at a meetup

 

[Moxie Mike]

However, I’m curious about what exactly drives their premium prices on the secondary market.

Scarcity drives the market - it's not much different than any other collectibles market. When demand outpaces supply, prices go up.

I understand and appreciate their high value and incredible quality.

Then what is this thread for?

It really sounds like you're asking 'what's so special about Paulson chips'?

Every collectibles market has their top-tier category. Cars, Cigars, Spirits... no different than poker chips really. Paulsons are the original authentic brand. They've in casinos all over the world. Obsolete chips are a piece of history.

 

[Mesnik44]

Inlays - Shaped vs Round
Mold - THC, RHC, etc
Spot colors and base colors
Rarity of chips
Labelled vs Hotstamp

I think those are 5 major factors in deciding what the chip price will be.