Do These Buyers Feel Foolish??

Longacre

I just received in the mail yesterday and advertisement from Superior Galleries which outlined the benefits of consigning coins to their auction group. In the advertisement, they attempted to show how much higher their sales prices are compared to competitors' prices. For example, they showed on the cover (in huge fonts) the 1926 Oregon 50 cent commenorative (PCGS MS 67) with a Bluesheet bid of $2,200 but with a price realized of $69,000 (a percentage increase above bid of 3,036%!), and a 1908 half eagle (PCGS proof 61) with a Bluesheet bid of $3,250 and a sales price realized of $46,000 (a percentage increase above bid of 1,315%!). There are several other examples listed where the precentage difference between bid and sales price is 300%, 600%, 800%, etc.

My quesiton-- do you think that the people who purchased these coins feel "foolish" in any way? This advertisement seems to say "hey look, the bid was $x, but these people paid over 100 times what was reasonable!" The purchasers probably don't care, but I just find it kind of funny that this is exploited and kind of insinuates that the purchase prices were "crazy". Any thoughts?

FrattLaw

<< <i>1926 Oregon 50 cent commenorative (PCGS MS 67) with a Bluesheet bid of $2,200 but with a price realized of $69,000 (a percentage increase above bid of 3,036%!) >>



The buyer and underbidder of this coin are both Board members here. I doubt highly if either one felt foolish as to their bids on this coin.

Here's where the coin and purchase were discussed by both -- Linky

Michael

kranky

I know the Oregon was a special case, but I understand the OP's point. I get the same thought reading those ads... "If I was the buyer, I would feel stupid now."

And aren't most of the examples for wildly toned coins? Their comparisons to "bid" prices are seriously inappropriate.

Placid

<< <i>Their comparisons to "bid" prices are seriously inappropriate. >>



Yes and misleading in my opinion.
Makes it sound like I can have them sell my ms67 oregon thru them and get 69k for it.

Theop

<< <i>Makes it sound like I can have them sell my ms67 oregon thru them and get 69k for it. >>



I think this is exactly the idea they are trying to convey.

jom

The "bid" prices are irrelevant....unless you want to by junk coins.

If a coin is at a public auction and more than one are bidding then the MARKET price for that coin is the winning bid. Period. This only hold true, of course, if the bidders are INFORMED buyers. In the case of the Oregon mention that is definately the case. The bidders (at least the top ones) knew exactly what they were bidding on and are considered experts.

jom

ziggy29

The bottom line is: to the extent that the price guides are relatively accurate, the prices listed are generally for average, problem-free examples. And this coin is an exceptional example, one which the very experienced, knowledgeable bidders very willingly bid up to this level. They know more about the coin market than I ever will.

We accept that coins that have problems -- cleaned, scratched, whizzed, artificially toned, or anything else that would get a coin bodybagged by PCGS or NGC -- sell for less than this.

It also stands to reason that exceptional quality coins within that grade will sell for more, and often *substantially* more. Think of it as "net grading" a coin upward from its technical grade. That's not something you see often, but when you have exceptional eye appeal, don't expect to buy it at current Coin World Trends or CDN Ask prices.

mgoodm3

makes it sound like: "Superior galleries, we have a lot of people who will pay stupid prices for your coins. Consign with us."