<< <i>This makes no sense for bullion type gold, the last company that had a sensible percentage on gold was Teletrade at 5.5%.
Who is going to buy a common $20 Liberty in MS63 or so and then pay the additional buyer's fee? It works out to over $200 for $1800 coins. So what happens is what has been happening to those who have been selling generic gold coins on Teletrade and other auction sites, the hammer is way under the metal spot price plus the seller often has to pay a percentage as a consignor.
They should have various tiers based on what they are selling at auction. >>
A better question might be, who is going to consign this material to them? When bidders are busting back their bids by 17.5%, the lower hammer price is going to make consigning bullion coins to them much less attractive. You might was well go to Silver Town or some other big bullion dealer and sell to them. Heritage could sell their in-house bullion on their auctions, but for consigners, unless there is a buyers' fee kick-back, it makes no sense.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
<< <i>A better question might be, who is going to consign this material to them? When bidders are busting back their bids by 17.5%, the lower hammer price is going to make consigning bullion coins to them much less attractive. You might was well go to Silver Town or some other big bullion dealer and sell to them. Heritage could sell their in-house bullion on their auctions, but for consigners, unless there is a buyers' fee kick-back, it makes no sense. >>
I also think that this will impact the consignment of generics that are not viewed as 'bullion coins'.
Member: EAC, NBS, C4, CWTS, ANA
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
<< <i>The difference in philosophies between the major auction houses and eBay are amazing. The auction houses suck up to the seller and tell the buyers to pound sand. But eBay sucks up to the buyers and tells the sellers to pound sand. >>
It all has to do with the nature of the business. Heritage is looking to attract the top coins and collections from which they collect the largest commissions. Therefore the consigner means more to them because they figure that the bidders will run after the prime auction lots like a pack of wild dogs. Dogs don't need incentives when they smell fresh meat.
Ebay is more dependent upon getting bidders to support the (usually) lower level material they offer. Sophisticated buyers know that "widgets" are almost always available; "treasures" require hunting, high bids and deep pockets.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
Virtually if not all standard cut bids (including those below $20,000) are now at least 5%. A backward calculation of 82.5% will never fall within the increment range. It's 2.5% less or 2.5% more. Lose the coin (82.5% is NOT a valid increment, nor is 87.5%) or pay more than before
I can't say I really follow this, but it's worth pointing out that anything that increases the cost of the next bid is on average an advantage for bidders. If you doubt it, consider how easy it would be to make money at an auction of K-Rands where the auction company requires increments of $250 on bids between $1000 and $2500. If you land on the right increment, you score like a pig. If you don't, someone else scores. Good for the bidders, not so much for the consignors.
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Comments
<< <i>This makes no sense for bullion type gold, the last company that had a sensible percentage on gold was Teletrade at 5.5%.
Who is going to buy a common $20 Liberty in MS63 or so and then pay the additional buyer's fee? It works out to over $200 for $1800 coins. So what happens is what has been happening to those who have been selling generic gold coins on Teletrade and other auction sites, the hammer is way under the metal spot price plus the seller often has to pay a percentage as a consignor.
They should have various tiers based on what they are selling at auction. >>
A better question might be, who is going to consign this material to them? When bidders are busting back their bids by 17.5%, the lower hammer price is going to make consigning bullion coins to them much less attractive. You might was well go to Silver Town or some other big bullion dealer and sell to them. Heritage could sell their in-house bullion on their auctions, but for consigners, unless there is a buyers' fee kick-back, it makes no sense.
<< <i>A better question might be, who is going to consign this material to them? When bidders are busting back their bids by 17.5%, the lower hammer price is going to make consigning bullion coins to them much less attractive. You might was well go to Silver Town or some other big bullion dealer and sell to them. Heritage could sell their in-house bullion on their auctions, but for consigners, unless there is a buyers' fee kick-back, it makes no sense. >>
I also think that this will impact the consignment of generics that are not viewed as 'bullion coins'.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
<< <i>The difference in philosophies between the major auction houses and eBay are amazing. The auction houses suck up to the seller and tell the buyers to pound sand. But eBay sucks up to the buyers and tells the sellers to pound sand. >>
It all has to do with the nature of the business. Heritage is looking to attract the top coins and collections from which they collect the largest commissions. Therefore the consigner means more to them because they figure that the bidders will run after the prime auction lots like a pack of wild dogs. Dogs don't need incentives when they smell fresh meat.
Ebay is more dependent upon getting bidders to support the (usually) lower level material they offer. Sophisticated buyers know that "widgets" are almost always available; "treasures" require hunting, high bids and deep pockets.
I can't say I really follow this, but it's worth pointing out that anything that increases the cost of the next bid is on average an advantage for bidders. If you doubt it, consider how easy it would be to make money at an auction of K-Rands where the auction company requires increments of $250 on bids between $1000 and $2500. If you land on the right increment, you score like a pig. If you don't, someone else scores. Good for the bidders, not so much for the consignors.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.