Why do people pay moon $ at Heritage auctions?

Peaceman

This past auction I saw a lot of coins going way over PCGS.com prices... I've had better luck on ebay, really, with very high quality coins at graysheet. Some coins with the same grade/service that I've bought at $ 600, went for $ 850+ at the auction. Here's some similarities........

1) They are both auctions
2) They both show pictures
3) Both usually have return policies
4) Heck, ebay sellers usually have better descriptions...
5) Both have a large audience

What am I missing?

MrEureka

What am I missing?

I believe that they call it "selection bias".

In other words, Heritage sales are more likely to contain fresh (more likely to be undergraded) coins because Heritage is aggressively soliciting such consignments. Additionally, people (especially dealers) are more likely to consign to Heritage when they believe their coins are potentially undergraded. That's because they know that buyers need to see a coin in person to pay much of a premium over the slab grade.

Peaceman

I disagree, I see just as much garbage on both mediums, including "undergraded" coins. I recently proved that in one of my posts, I think Heritage had something like 20 nice coins out of 179 at auction as far as Peace dollars was concerned. Your response indicates that there are more undergraded coins at auction on Heritage's site. I just don't see that. Undergraded would = premium quality... 20 out of 179 doesn't prove that to me....

convince me.......

Nic

People pay moon money based on the coin, not where it is sold. Some auction venues can provide more buyers however. In general, moon money means sight seen competition. k

Bear

GSAGUY, maybe the dealer didnt like your hair piece.

Placid

So they can win the item.

BAJJERFAN

As a rule Heritage has better pics.
Heritage has a larger number of serious buyers.
Good stuff brings top $$$ no matter where it is sold. A 1903-s micro s PCGS ef 40 recently sold on eBay for $1400 plus. Wasn't too long ago they were going for about half of that. The better stuff is harder to find listed on eBay.
The PCGS.com price guide is inaccurate.

Typetone

There is no real creadit issue at a Heritage auction. On ebay who knows who you might be buying from, and whether that person will actually send the coin once he gets your money.

Greg

wondercoin

No question Heritage brings out strong bidders. And, in some cases "moon $" (such as the infamous $39k for a "perfect" 1963 penny we hear about on the boards a few times per week). But, in many other cases, there are GREAT buys in their auctions, especially on coins that are fairly easy "upgrades" and while they go for great money in the current grade, they can command way higher prices in the fresh new upgraded holders.

Overall, IMHO, I think Heritage is just about as good an auction to BUY from (for good value) as to sell at.

Wondercoin

roadrunner

For every coin that brings the moon, there is another coin that brings blue sheet money. Just depends on the quailty and type of offering. Many items DO go begging at most every auction.

roadrunner

MacCoin

what is moon money

Shamika

Moon money is a super high selling price relative to what the same coin in the same grade might otherwise sell for.

For instance, a 1943 Steel cent in PCGS MS67 might typically sell for $70. However, if another 1943 Steel cent in PCGS MS67 came across the auction block and sold for say $400, you would say that coin sold for moon money.

barberlover

Almost every time I have tried to buy a coin from a signature sale, the coin ended up with multiple under bidders biding the coin up above retail.

The "bargins" were ugly or dipped out and even some of those get better prices at auction then they would get in an attempt at a direct sale to a dealer.

Oh, how I hope I don't have to sell anymore of my best pieces because they would cost to much to replace now.

I am not as active in the market as I used to be, but even if I was, I wouldn't pay some of the prices I see coins with "the look" going for right now.

Les

EvilMCT

For me, it's real easy. Heritage is a known entity. JohnBoy on eBay is not. If they both have the coin I'm looking for, I'd willingly pay more for it, if needed, to buy it from Heritage. It's not that they have better coins, etc. It's so that I can have some peace of mind with my purchases. I know that the coins will arrive and if there are problems, I will not have to rant and rave for a solution. I have given up on buying anything of significant value on eBay.

Ken

ohbaby

Great thread with maybe an unintended message for ebay.

To answer your question, the moon $ paid is based on probably fresh coins coming to market. Heritage does auctions lots which go for a song [no dance].

ebay cannot match the results based on the risk of dealing with an unknown. I know plenty of serious buyers [not true collectors] who no longer bother with ebay as it is filled with fraud [shills, fakes, low end for grade, etc.]. Get burned a few times and you wonder why bother.

ebay remains very vulnerable for the bidding/auctions of serious collectors. Heritage or BM or ?? should fill that gap with 24/7 auctions run and bid on by preapproved with references buyers/sellers. There is money to be made!