What Influence Have The Auctions Had On Current Coin Prices?

elwood

Are auctions partly responsible for some of the increases we've seen in the last year or two?
People on this forum often recommend auctions as a venue to sell their collections, because that is where you will get the most money for your collection. Does the exposure and atmosphere the auction provides hype coins and their pricing? And if so, wouldn't this be carried throughout the entire market since Prices Realized are often used as a guide to price out similar coins?

The 15% buyers fee?
Obviously an add on.

A Very Competitive atmosphere where the bidder is caught up in the excitement/competition of a live auction?
I think we can all say that we have STRETCHED on occasion!


A dealer consignment with a high reserve?
This would be a dealer who thinks quite highly of a particular coin and decides to take a shot with it. Hoping to find a sucker and actually gets one to bite!

I have a question, if, an auction is the best place to get the most money for your coins? why is it that a majority of the lots are bought by dealers? Who will in turn get even more for your coins? Does this show that you actually didn't maximize the value of your collection?

Catch22

I think any time you have a large group of people competing for something you are going to see true value realized. Sure, there may be someone, somewhere willing to pay more for the item, but if neither you nor he knows the other exists it's not going to matter. The key is to make your item available to the most people at any given time. The better auctions do this through mailings, internet and cooperation with the major shows.

cladking

Most dealers have contacts to sell to various collectors and dealers who pay the highest
price on some specific item. If you know who the dealers are then selling directly to them
will maximize your return. In some cases you can't sell directly to the highest buyer because
it's impractical or the company buys only in quantity. There are many different specializations
and it can be difficult to find the best buyer for an item or lot. Auctions will often get these
big buyers or their agents out into the bidding.

The market is based on the highest price and this is where it's frequently found.

keets

What Influence Have The Auctions Had On Current Coin Prices? Are auctions partly responsible for some of the increases we've seen in the last year or two?

probably not as influential as repetitive dealer-to-dealer sales before coins are finding homes.

al h.

roadrunner

The 15% buyers fee should have no bearing on the price paid. Most bidders subtract this and bid 87% of the coin's value. It is misnamed a buyer's fee but is clearly paid for by the SELLER, unless the bidder gets confused and doesn't factor it in.

Dealer's pay what they think a coin is worth to them wholesale at auction, then mark it up 10-20% (or more) for retail, or maybe 5-10% for a higher wholesale transaction. Many times I would pay about the same price or even a few % higher than the dealer pays. It's often cheaper than paying 10-15% later once it is in inventory. From this view point most coins that sell at auction that are bought by dealers sell for wholesale. But good luck trying to offer them the same coin before the sale at the same price. Many buyers just don't trust dealer's markups and would rather get the coin under fair and square competition at auction. I can't argue that point.

Auctions have typically been the stomping ground for dealers and a few sophisticated collectors. If the Jung sale is a barometer of what is coming (new collectors and investors bypassing the usual dealers at auction), then the prices realized will have no bearing on what dealers will pay for coin. It may give the collectors a barometer of what to pay.

roadrunner

Nic

I try to influence them as much as I can. See you at the next auction, Elwood! K

bullseye

I know that the auctions have taught me not to wait when a great coin is offered privately or by a dealer. And that I need to pay the price for it as well.

I'd say the auctions have had a very strong effect on the market. They seem to be where the majority of neat coins appear.

Mike

elwood

K Hope you make the ANA!!!

Steve