Enough with new auctions. Learn how to price a coin already.

lava

In the auction space, there is Heritage and every one else (SB, TT, G and even ebay).

I'm not sure which dealer was the first to start with auctions, but D. Lawrence comes to mind. If the amount of my business is any indication, which went from periodic buyer (and frequent visitor to the site) to complete stranger (and no longer visiting the site), then in my opinion that experiment was a tremendous flop. So why are others following suit? Legend. JJ Teaparty.

Can a dealer no longer price a coin? Not sure if the auction craze says more about greed or incompetence, but I don't care for it.

If you hold yourself out as a dealer and can't price a coin, I don't have time for you.

Greeniejr

While I think there are excessive numbers of auctions, there are certain coins that are near impossible to price. One thing that comes to mind are rare problem coins. Recently we had a 1795 Dollar graded and it came back XF40 details damaged. There are what look like chop marks on it. Problem free the coins is worth 10K. I am not sure offering the coin I would be willing to price it much more then $1500 or thereabouts. I can easily see it selling in auction or eBay for 3000+. Why leave money on the table like that. We also just put an 1874 gold dollar in NGC MS68 into auction. The last several have sold in the $12-13k range. This is a little bit of a date premium. Selling it wholesale nobody will pay the date premium which puts it at $6-7k. Again why leave money on the table by pricing it at $10k and having it never sell.

CoinRaritiesOnline

<< <i>in my opinion that experiment was a tremendous flop. So why are others following suit? Legend. JJ Teaparty. >>



Because they are not basing their business decisions only on your opinion?

Moldnut

While I have no problem with them starting an "auction", it does get a bit under my skin when they call it an "auction" and start the bidding at retail. As for the auctions like DLRC and JJ, Im out too.

tradedollarnut

It has absolutely nothing to do with inability to price a coin and everything to do with filling a niche.

BillJones

<< <i>While I have no problem with them starting an "auction", it does get a bit under my skin when they call it an "auction" and start the bidding at retail. As for the auctions like DLRC and JJ, Im out too. >>



Yes, I agree with that statement. When you place the minimum at a retail price, the dealer is saying, "Okay I want retail money for this item, but if you are willing to pay more, I'll take it." Auctions like that are a waste of time unless the item is so hard to find that you are "desperate" to acquire it. This is especially true when it is an Internet sale, and you are trying place bids based upon pictures without seeing the piece in person.

Greeniejr

In defense of the retail auction model, it is better than having there be a regular auction but where games are played and shenanigans are used to turn them into retail starting auctions.

Greeniejr

Also niche auctions can be extremely successful given the right management and strategy. You have to know your audience and exactly what that niche is. I know it was ancient coins but when Harlan started Gemini auctions in 2004/2005 there was an opening in the market for a more boutique ancient coin auction with several of the most knowledgeable numismatists in the industry. They only do 1 auction a year (did a second one year partnered with Heritage) and there is buildup all year to this one auction at the NY international show. It has been successful each year since it's inception. The market has change since then so I am not sure how new auctions will be welcomed especially on the light side but I guess we will see.

messydesk

It's called a paradigm shift. Years ago, the backs of the coin magazines would have lots of "Mail Bid" auctions, where you'd write down your bids for specific lots, mail the piece of paper to the shop, and await notification of successful bids. Now, with the interwebs and sufficient tools available to set up an auction website, a dealer can fairly easily set up a live auction. Whether they meet with any success depends on their ability to get interesting material, their ability to set a reasonable opening bid level, their ability to attract attention of bidders for their material, and their ability to administer it efficiently. On the other hand, if they only have a fixed-priced inventory, whether they meet with any success depends on their ability to get interesting material, their ability to set a reasonable price, their ability to attract attention of buyers for their material, and their ability to administer it efficiently.

UncleJoe

<< <i>While I think there are excessive numbers of auctions, there are certain coins that are near impossible to price. One thing that comes to mind are rare problem coins. Recently we had a 1795 Dollar graded and it came back XF40 details damaged. There are what look like chop marks on it. Problem free the coins is worth 10K. I am not sure offering the coin I would be willing to price it much more then $1500 or thereabouts. I can easily see it selling in auction or eBay for 3000+. Why leave money on the table like that. We also just put an 1874 gold dollar in NGC MS68 into auction. The last several have sold in the $12-13k range. This is a little bit of a date premium. Selling it wholesale nobody will pay the date premium which puts it at $6-7k. Again why leave money on the table by pricing it at $10k and having it never sell. >>




Do I correctly assume this coin was on consignment? If not, how did you price it to buy it?

Joe.

Greeniejr

<< <i>

<< <i>While I think there are excessive numbers of auctions, there are certain coins that are near impossible to price. One thing that comes to mind are rare problem coins. Recently we had a 1795 Dollar graded and it came back XF40 details damaged. There are what look like chop marks on it. Problem free the coins is worth 10K. I am not sure offering the coin I would be willing to price it much more then $1500 or thereabouts. I can easily see it selling in auction or eBay for 3000+. Why leave money on the table like that. We also just put an 1874 gold dollar in NGC MS68 into auction. The last several have sold in the $12-13k range. This is a little bit of a date premium. Selling it wholesale nobody will pay the date premium which puts it at $6-7k. Again why leave money on the table by pricing it at $10k and having it never sell. >>




Do I correctly assume this coin was on consignment? If not, how did you price it to buy it?

Joe. >>



The 1795 dollar is overgraded and really should be in a VF details holder. We bought it raw and paid an appropriate price for what it was. On the $1 gold it was a lot more complicated. We took it on consignment at 10k and it did not sell at any level we tried. We had several offers in the $6-7k range. We offered the customer a chance to put the coin in auction but he wanted money immediately. Seeing as we had offers of $6-7k we figured that paying $6500 would be fair for immediate funds. If it goes for a lot of money in the auction, we will probably send the guy a check for more depending on the result.

renomedphys

Long before the internet, dealers all over were hosting weekly auctions in their shops with "bid boards". Nothing wrong with that practice.

LanceNewmanOCC

.
shouldn't leave out proxibid and auctionzip

those two venues host quite a large number of auctions
.

michiganboy

Coins are a collectable commodities, and supply and demand set the market price. This is why auctions are good for the hobby as a whole. Other wise you would have to depend on dealer x to tell you how much the coin is worth with out knowing any real world prices. Price guides are based off of sales through different venues and part of that is auctions.

renomedphys

Also, dealers that price coins in writing (like on a flip) are leaving themselves in the dust as prices change either way. Even if a price falls, you wouldn't want your inventory languishing in a case because you are asking too much. Still, many dealers do this, and it presents advantages to a savvy collector, so I can't say too much bad about it

CEOcoinshopcom

Just wanted to throw in on this subject. Our website operates on the "auction" model. We also have a store, for those who like "fixed prices".
We use the auction model mostly because prices are determined by the customers. Our auction software keeps track of bids, and sets the opening bids at the lowest past sale. Many times customers can buy coins at the lowest price that way. If a coin goes unsold a few times, the starting price lowers until it hits the price that folks are happy with.

With "special" coins, varitities, low pops, and such, the open auction seems to be the best answer for obvious reasons.

Hoping that our model will help the collectors out there. Without the buyer's premium and other costs, prices should stay lower. Also the open market keeps things fair (Capitalism at it's best).

Nickcap

As a collector, I want as many venues as possible to get my Coins.

While I have been to the coin dealers in Houston, they don't carry what I collect.

Why should I be, pigeoned holed into a 1885-CC MS62 Morgan when my set requires an AU58?

Maybe as a collector, I am different than most. I will pay more for a coin that fits my AU58 Set of Morgans than the more common MS Morgans.

Times change. If you dont keep up with them, you will be left behind.