I have a reasonably simple question, that probably has a more complicated answer:

I've only been collecting chips for a week and there are a couple things I've identified relative to value (I don't own any price guides as of today, so all my valuations have been determined by this board and some auction sites).

1). Current chips are sold at face value plus a premium, e.g., a $5 chip is sold for $8. This is obviously due to the fact that a current chip has intrinsic value and the seller is recouping costs associated with the sale of the chip.

2.) Obsolete chips (recent obsolescence-less than 5 years) are sold at a higher premium, e.g., a $5 chip is sold for $15 or more.

Here comes my question... Do obsolete chips have any intrinsic value? Do casino's have a redemption period for obsolete chips? From my observation, older Obsolete chips are sold for MUCH LESS than recent Obsolete chips, e.g., a set about 10 years old from an existing casino with a face value of $133.50 sold for $9. To me, once I see someone advertise a chip as Obsolete, I believe the chip is no longer redeemable at the casino.

I guess my ultimate question is... If I buy current chips at face value (with or without a premium) and they become Obsolete... at what point do they start to decrease in value? From my example above, it appears to take from 5-10 years for an Obsolete chip to loose value (significantly!). Also, do LE and SE chips carry the same risk? When do they become Obsolete? Does Obsolete mean a chips has been retired? We've all seen the collector markets for various collectibles come-and-go...

I think I've finally decided which chips to collect, I just wanted some input from those who've been collecting chips for a while to ensure I've made the right decision. I'm in it as a collector for the long haul and don't want to make the wrong decision (I'm not Trump... I can't loose it all and then go to the bank and secure a billion dollar loan!).

Thanks!

Larry