Auction consignment strategy question
RYK
Posts: 35,800 ✭✭✭✭✭
I will start by saying that I have no immediate plans to auction any part of my collection.
The auction companies, while fishing for consignments, regularly advertise:
"Have your coins sold alongside the Blah-Blah-Blah Collection"
The one that recently caught my eye, of course, was the Duke's Creek Collection of Dahlonega $1, $2.50, and $3 gold. These are all upper condition census and finest known MS coins. Let's say I am considering selling some AU Dahlonega coins in the same auction. Is is beneficial or deleterious (or does it matter not at all) to a potential consignor that similar and/or competing coins might be sold at the same auction?
The auction companies, while fishing for consignments, regularly advertise:
"Have your coins sold alongside the Blah-Blah-Blah Collection"
The one that recently caught my eye, of course, was the Duke's Creek Collection of Dahlonega $1, $2.50, and $3 gold. These are all upper condition census and finest known MS coins. Let's say I am considering selling some AU Dahlonega coins in the same auction. Is is beneficial or deleterious (or does it matter not at all) to a potential consignor that similar and/or competing coins might be sold at the same auction?
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Targeted advertising at its' best.
I don't see it as compeition - rather the more specialist material focused in one auction the more attention and bidders it will attract, the more people will be saving up for the sale, etc.
I think it would help attract attention to your consignments as all the serious buyers who are looking for specialized gold will be reviewing the sale. Your prices realized may be higher as you may catch good action from underbidder competition from the Duke creek collection bidders as well as those that may need to step down a level on some issues. Aditionally, those pieces in your collection your considering selling that may be superior to the duke creek specimens ( I now you have some) may do extremely well??
jim
The exact timing does make a difference. I don't care whose collection sells at the same venue as yours, if they go off days earlier, there is potentially no benefit to you. Buyers could be out of money by the time your stuff comes up. I've seen similar sales where one consignment overshadowed the other. Many variables at work. You would need to hammer out the specific terms in your auction contract. It's probably more important to pick the right venue (show, month, year) based on market timing than anything else.
roadrunner
That would be a great time/place to auction similar coins. The auction will be on the radar of almost every Dahlonega gold collector, both those who can afford a Duke's Creek coin and those who just want to look and lust.
Many other folks appear to agree.
That said, there are definite dynamics prevailing in the various valuation ranges in auction. Absentee bidding sheets for at least one of the major auctioneers used to allow a bidder to enter a maximum total bid on the sheet so the proxy bidding would discontinue if you bump up on that limit. You could put $100K in bids on the sheet with a $70K limit. Nowadays, if you bid absentee by any mechanism $100K in bids and they all win at their maxima, you are liable for $100K+fees. That makes many absentee bidders conservative. For that reason, the presentation of your consignments can be pretty important. You want a maximum number of interested bidders to place bids on those lots. On the floor, bidders have the advantage of cutting off their bidding if they are abundantly successful. There, the order of lots are important. I recall another house used to put their uncertified material in front of the slabbed stuff. Some bidders undoubtedly held back on their bids to get to the slabs. I noted a 1921-S gem DMPL once going for less than it should have probably because it was the last Morgan auctioned off in a sale that had a lot of quality material that went for a lot of $$$, probably tapping out a few of them.
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You know better than anyone how scarce AU and higher branch Mint gold is to find. With your son now in the hobby, and with the likelyhood of continued growth in D and C mint gold, there is little reason I see for selling. Wouldn't you hate for your son to have to pay multiple time what you did for possibly the exact coin you sold with ole Duke?
As indicated in the OP, I have no intention of selling my Dahlonega gold...I am still in the accumulation phase and enjoy adding to my Dahlonega stash every chance I get.
does not matter ALL THAT DOES MATTER IS THAT
you get full color photos of your coins in the auction cat and online that are acceptable to you IN OTHER WORDS YOU HAVE TO SIGN OFF ON THEM
you get one or two of your coins on the cover of the auction catalogue
you get 105% of hammer
you get to put your reasonable reserve on eachy coin and if does not meet reserve there are no buy backs
most importanylt you get to sign off on the auction description in other worss you give the catalugugers the main important information about your coin and make sure they get it right in the description
if you get all of the above all is good if not pass