How does dealer representation at auctions work?

ER

Could someone explain this to me?

jdimmick

I totally agree. Before, I used to bid on Heritage, B@M lots, etc based on images from the screen, and descriptions from the auction companies. Luckily, I hadnt been burned in the past, although I did pick up a lot or two that I wouldnt have, had I been present to see the coin. But after attending a few major shows in the past 18 months, and spending a lot of time looking at auction lots, thier is no way I would ever attempt to bid on a sizeable priced coin with out seeing it first hand, or having a representative that I had total faith in to do it for me.

Also, on many of the coins, having a dealer representative actually on the floor while the bidding is going on is a must. I spent some time bidding on a few auction lots for a dealer freind at the FUN show, and I was able to grab a few of the lots a cut-bids, rather than a full increment.

roadrunner

It's definitely a bargain if you use a dealer who has considerable skill and knowledge in your area of specialty. Most dealers are somewhat knowledgeable in all areas of collecting, but lack true expertise and market knowledge in many specific areas. You need to get a true second opinion, not just a rubber stamp.

The real reward is when the "right" dealer keeps getting you into
underrated pieces in your specialty so that the 5% is not even an issue. You are in fact buying coins at 0% or less! Many times these same coins get offered on fixed price lists for 10-25% markup by the winning dealers. It's nice to know that you were able to get in on the coin at only 5% higher than their max bid. This works as long as the coin is the right coin. There are many traps as RYK stated. Your representative must steer you away from such pieces.

roadrunner

MrEureka

I strongly suggest you ask the dealer if they physcially will be in the room bidding

Good advice.

For an extreme example, I recently attended a sale and bid on a lot that opened at 32K. There was one other bidder. The bidding quickly ran up in 2K increments. I bid 46K, then the auctioneer looked to the other bidder and asked for 48K. He shook his head "NO", but the auctioneer mistakenly took it as a bid and hit me at 50K. When I objected, the lot was reopened and I somehow ended up paying only 40K. (Thank you, Mr. Underbidder!) I think the auctioneer's mistake was honest, but that doesn't change the fact that if I had left my bid with the auctioneer I would have probably paid another 10K for the lot.