Do auction firms give us just enough information for us to be dangerous?

Longacre

I was taking a look at the blog of a prominent dealer. In it, he makes the following comment about auction houses and the interpretation of prices by non-professionals:

"I have a theory that auction firms give collectors just enough information to do damage to themselves. They provide an archive of auction prices which show what coins have sold for and with a little bit of digging, the collector can determine if the coin sold on the floor, over the phone or to an Internet bidder. But unless someone really follows the market carefully, all of this “information” can do little more than serve as an easy way for the neophyte to make major mistakes. I have long said that hiring an auction representative for 5% is far and away the best value in all of numismatics. This fee (which amount to a whopping $250 on a $5,000 coin) is a small price to pay to have a specialist explain to you why a certain auction record is valid or not valid."


Do you agree with this comment? In a way, the writer has a point. It is far easier to pay a dealer's fee than it is to spend the time to make a determination on a coin if you are not very familiar with the workings of the market.

pennyannie

I agree with most BUT if i want a coin that a said expert has looked at and determine to be worth 5000 dollars and he says 5000k is max for bid, i would be upset when said coin sells for 5100.

Coins and good cents do not always go hand and hand together.

1Mike1

I agree with it if the dealer has a proven history. A lot of people claim to be dealers and experts. I hope nobody has the idea to pay a fee for an expert to select an expert.