POLL: Selling with RESERVE or NO RESERVE in live major auctions???

saintguru

I've been watching auctions for years now, and it seems that more poeple are using reserves when consigning. It seems to be the right thing to do, but IS it? (EBAY not included in this poll.)

I'm hearing from many very astute buyers and sellers that it actually depresses the prices realized!

I tcan see how a no reserve allows more people to get involved in the early bidding process and as this happens the "thrill" of bidding, as well as the competition does create a more vibrant auction. Reserves make you show your hand. That's sometimes hard to do.

What do you think. I saw a LOT of great coins go unsold at ANA that might have brough very fair prices had they not be reserved. I do not believe that every coin would be a vitim of "dealer collusion conspiracy". Collectors are willing to pay very fair prices so the idea that a really good coin could be stolen seems pretty unlikely.

ziggy29

The really good stuff doesn't *need* reserves. The marginal stuff usually has them set way too high as if they were PQ.

CarlWohlforth

For the lower priced coins I sell on eBay no reserve is better on average. It generates more interest and bidders know they are bidding for real and may actually win the auction rather than discover a reserve. However I can clearly see the need/desire to protect oneself on very expensive and thinly traded coins so would recommend placing reserves on that kind of item.

saintguru

PQ is mainly a delusion...with a few exceptions. ALL MY coins are PQ.


REALLY!

ER

You're asking this question to the seller or the buyer?

saintguru

Carl...let's not think Ebay and concentrate on live auctions.....Ebay is a different world.

orie

No reserve, but my guess is 75% of no reserve auctions are being shilled.

robertpr

A reserve, IMHO, pretty much defeats the point of calling it an auction. I can certainly understand the need to protect an investment however. The potted palm at the back of the room can act as a reserve in any event.

Shamika

As a buyer I HATE reserve auctions; eBay or otherwise. I'd rather you just shill.

saintguru

Shills often own end up owning coins in NO reserve auctions. Don't even ask.

saintguru

<< <i>You're asking this question to the seller or the buyer? >>



To the SELLER

KentuckyJ

I think the key to using reserves is to place them at a realistic level. FWIW, we placed eleven coins into the Heritage Denver ANA sale. One Platinum night, nine signature, one online. Reserves were placed on each coin but all reserves were reasonable (IMHO) and below our cost. Only one coin failed to meet it's reserve. Most coins sold slightly above reserve with two coins going out of the ball park achieving serious record high prices for date/grade.

Our sincere thanks to Todd Imhoff for working with us on this consignment. Todd, you're the best!

KJ

saintguru

Most reserves by collectors are not all that "reasonable". They want to reserve at the price they want...and that does not promote any bidding.

Dealers...I don't know how they reserve the coins. If it's at 75% value that's reasonable, but is it helpful...to the seller.

Todd is a great counsel on this. He puts the consignor's interest first....and I'm not being naive. He knows that return business is good business.

mhammerman

Like a school of mullets to the catfood factory...

The way the last set of auctions went (Denver), the good stuff didn't need a reserve because it sold for good money and a lot of the weak stuff didn't sell because no one would pay the reserve price (I just know about my series though). So...if you have weak stuff, and you have to put an optimistic reserve on it, you're just fishing, hoping for smoething good to happen. Reserves are a distortion of reality...the good stuff will sell at good prices and the weak should sell at weak prices so reserves are a waste of the consigners time and fees. Stupid buyers in this business don't last long, particularly if they spend a lot of time biting on dealer auction consignments of weak coins with strong reserves. BAH!!! Let us, the market, tell you what the coin is worth by buying it with our highest bid money, don't try and tell us what it is worth with your optimistic reserves. It is not a good marketing strategy.

Coin ON

coindeuce

From my perspective, the auction house rep. that is handling a consignment better be damn well informed about the buyers market for the type of material being offered if no reserve is being pitched as part of the contract. Especially since most auction houses refuse individual lots of value considered below $2500 for a signature auction. In my experience, the only interest of the auction houses has been in the owner's aggregate value of the collection. Unless offering esoteric classics or ultra rarities, the auction houses seem to give me that "you want sell what?'" attitude.

291fifth

Quality material will do better in a no reserve auction if the bidders are aware there are no reserves...but how do you assure them of that when they suspect most auctions are loaded with lots with high reserves or sweetheart buy back deals. This is a problem the numismatic auction industry is going to have to address.

mercurynut

I would never sell a high priced item without a reserve on it. The reserve protects the seller from getting ripped.

coinguy1

Having considered this subject from the perspective of both consignors and as a consignment coordinator for an auction house, I generally recommend that consignors place (conservative) reserves.

If you place no reserve at all, you chance a very unpleasant surprise/outcome. For various reasons, from time to time, coins can and do sell for too little, even in a major auction. On the other hand, if you place an aggressive/unreasonably high reserve, you discourage bidders and can end up keeping your now-stale coin, while paying a buy-back fee for that "privilege". So, I advise placing reserves, in order to avoid a big/bad surprise, but I recommend that they be conservative and considered/looked upon as a worst case selling price.

Julian

IMHO, there is definitely a value in placing a wholesale reserve on consigned items. There are not necessarily two interested collectors at every auction for rare coins. If there is one, then the reserve lets that bidder purchase it for a little more than wholesale. If there are none, and there are no aggressive dealers, then the coin can fall thru the cracks and you can be quite disappointed.

Estates do not normally place reserves on their consignments, really having only one reason to offer the coins and that is to settle the estate.

For continuing numismatists, there is always another day to sell the coins, or perhaps trade them in on something more interesting/desirable for your collection.

Dealers that consign are only interested in getting a fair price for their consigned items. It is a marketing tool. If they don't sell today, then they will sell another day.

Always remember that we are in a luxury hobby. There always aren't fair buyers for every coin, every day.

tradedollarnut

It depends on what the goal is - to maximize price or maximize the possibility of sale. I have placed coins in auction that I had no intention of selling for less than my reserve. I have also placed coins in auction I wanted to go away. In the first instance I had high reserves and in the second reasonably low reserves.

RichieURich

From the viewpoint of the buyer, I'd like to know if there is a reserve or not on a lot I'd like to buy. It's even more helpful if I know what the reserve is. Heritage does this well, they tell you if there is a reserve and what bid it will take to get it over the reserve. This allows the buyer to allot his/her funds towards coins they have a chance of buying. From a seller's perspective, I think I'd want the buyer to know what the reserve is. If the reserve is $1000, (and undisclosed) I don't want the buyer to stop at $950 and say the reserve is probably too high, and move on to another lot. Just my opinion.

rec78

Rich.
If you are looking for a record setting price with a reserve then forget it-Why irk the potential buyers? I have not sold anything in a major auction, but on ebay when i want to sell something to free up funds for other things that i may want or need i do not use a reserve as i want to sell and do not basically care if i win, lose, or break even on a coin. I just want the funds for something else. If i sell smoething that i like and feel should bring a certain price then that will be the reserve and it generally sells. If it doesn't sell, i still like it and don't have any problems keeping it..Yes i do like to know what the reserves are. Please do not waste my time by putting a $3000 reserve on a $1000 coin. I do not see reasonable reserves (i.e.at or about the going market price) as a problem. I suggest a reserve at about 75-80 % of going market rate to at least generate some interest if you really want to sell.
The question is do you want to sell to 1. free up funds or settle estate -(then no reserve)
2. get the current market rate for the coin (moderate reserve)
3. replace the coin with a higher grade example(high reserve) because you really don't mind keeping the coin if it doesn't sell at the reserve.

Of course the NO Reserve auction are the most fun as you never know the result untill the hammer. JMHO. Bob