Hypothetical auction scenario involving a made-up situation (real) and imaginary characters (me)
ColonialCoinUnion
Posts: 10,087 ✭✭✭
Lets say a major coin auction is coming up. OK then.
Now, what if appearing in this auction will be a coin which is very rare and quite expensive. Lets just say it will be mid-sized-American-family-car-with-crushed-velour-seats-and-rear-window-defogger expensive.
Further, what if a hypothetical collector (me) already owns an example of this coin and paid what economists call a 'buttload' of money for it.
If you were the hypothetical collector (me) attending the auction what would you do:
1) Sit on your hands quietly while another bidder buys the coin in the auction for whatever price it brings, be it higher, lower or the same as what you paid for yours and then congratulate the successful bidder with a hardy 'well bought, chief' and a manly slap on the back.
2) Bid on the coin only if necessary to protect your investment and ensure that this new coin sells for about the same price or more than you paid.
3) Aggressively bid on the item with the intent not to buy it, but to crank it up into the big money range and ensure that whoever does buy it pays through his large elephant nose.
4) Buy it. Own 2, and let someone come knocking on your door before to long attempting to pry one away from you.
Now, what if appearing in this auction will be a coin which is very rare and quite expensive. Lets just say it will be mid-sized-American-family-car-with-crushed-velour-seats-and-rear-window-defogger expensive.
Further, what if a hypothetical collector (me) already owns an example of this coin and paid what economists call a 'buttload' of money for it.
If you were the hypothetical collector (me) attending the auction what would you do:
1) Sit on your hands quietly while another bidder buys the coin in the auction for whatever price it brings, be it higher, lower or the same as what you paid for yours and then congratulate the successful bidder with a hardy 'well bought, chief' and a manly slap on the back.
2) Bid on the coin only if necessary to protect your investment and ensure that this new coin sells for about the same price or more than you paid.
3) Aggressively bid on the item with the intent not to buy it, but to crank it up into the big money range and ensure that whoever does buy it pays through his large elephant nose.
4) Buy it. Own 2, and let someone come knocking on your door before to long attempting to pry one away from you.
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Comments
but if it were me doing the bidding I would get stuck with it.
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My 1866 Philly Mint Set
4 of course!
and look to sell the other. By averaging down, you lower the cost of the
first coin you purchased.
Camelot
peacockcoins
Financially it was the wrong move. I should have bought both pieces and basically cornered the market!
roadrunner
Of course, this is very hypothetical, since it'll be a cold day you-know-where when I'm in the sphere of folks who buy coins that are "mid-sized-American-family-car-with-crushed-velour-seats-and-rear-window-defogger expensive."
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
1.
If the first purchase was a mistake - i.e. the coin is a poor investment and does not appreciate on its own merits - then it would be foolish to chase good money after bad.