Many listings for silver art bars contain a reference to something called a Rarity Value. There is some confusion about this topic and even seasoned sellers on eBay are not always using these numbers correctly. In just a few short paragraphs, I can explain what these numbers mean, where they come from and how YOU can use them to be a more informed buyer.

There are two terms you need to familiarize yourself with: Book Value and Rarity Value. A Book Value for any collectible is a price one would expect to pay if the buyer and seller were equally motivated to complete the transaction. Prices are higher in a store setting. The seller isn't very motivated to sell. An item may sit there for a year or more until a buyer seeks it out who is willing to pay a premium price. In the auction format, it is the seller who is motivated. The final price may be lower, but the item will sell in a finite period and the seller will recover this working capital. In most collectible lines a Book Value, alone, is sufficient to portray an accurate valuation.

Silver Art Bars are different in that there is also an intrinsic value inherent to them. A combination of the weight and purity of the bar gives a value that is easily determined by referring to the Spot Price for one troy ounce of .999 fine silver. This valuation for the intrinsic worth is commonly called a Melt Value. Put quite simply, the Book Value of a Silver Art Bar changes as the Spot Price of silver changes. This is where the Rarity Value comes into play. The Rarity Value is the price ABOVE the Melt Value. An Indexed Guide Book of Silver Art Bars is THE definitive source for Rarity Values. The latest edition was published in 1991, but there is good news. An update will be coming out this year along with a Volume II which will cover more current releases. The Rarity Value takes into account the desirability of an item. The Rarity Value doesn't change whether the Spot Price of silver is $5.00 or $19.61. The authors of An Indexed Guide Book to Silver Art Bars broke down Rarity Values into 5 levels:

• Rarity 1 - $1.00 to $2.00 Over Spot Silver
• Rarity 2 - $3.00 To $5.00 Over Spot Silver
• Rarity 3 - $5.00 - $10.00 Over Spot Silver
• Rarity 4 - $10.00 - $20.00 Over Spot Silver
• Rarity 5 - This Higher Category Was Priced Individually

Terms to know:

• Spot Price is the value of one troy ounce of .999 Fine Silver.
• Melt Value is the total value of a bar based on its weight and purity multiplied by the Spot Price.
• Rarity Value is a set amount ABOVE the Melt Value which indicates the desirability and true rarity of a bar.
• Book Value is equal to the Melt Value + the Rarity Value.

The caveat for this hobby is to only use Rarity Values as a guide; not as a Bible. Many bars have been melted down during price spikes. If you simply don't see an item in the auctions very often... it is rare! So many bars that were considered commons got melted that they are now harder for the collector to find. I hope this helps you sift through auction listings where the seller states a Rarity Value when they mean Book Value and have included the intrinsic value of the silver content. Use Rarity Values for comparison purposes and use Common Sense for your bidding!