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Buying a rare variety through a major auction

MilkmanDanMilkmanDan Posts: 3,768 ✭✭✭✭✭
There's a fairly rare but obscure variety at HA right now with two bidders going at it. I scratch my head because variety or not, the quality doesn't look that nice. The bidding has risen sky high with over two weeks to go before the live auction.



I have to think that these bidders aren't in tune with what's out there. A number of these have passed between collectors for thirds of the current price. I doubt it's the Set Registry because this variety set is thinly collected and the top few set owners haven't yet bid on this coin (and most likely won't) If the bidders are this out of the loop, then likely they also won't have a network to sell it to, when the time comes.



I see this and I think about what I enjoy with varieties. It's the hunt, and the camaraderie with other collectors of the same series. Apparently it's also saving me big bucks.



(not revealing the coin because it's not important to the conversation and the auction is not over yet)

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    MidLifeCrisisMidLifeCrisis Posts: 10,613 ✭✭✭✭✭
    image
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    RichieURichRichieURich Posts: 8,628 ✭✭✭✭✭
    Without commenting on this particular coin, there could be a number of reasons that two bidders are bidding very high on a variety. It could be that the bidders haven't seen many examples of the variety for sale, it could be that there are very few certified by PCGS and maybe this one is at or near the top of the population, it could be that some people just like to own a variety which appears to be rare. In my opinion, many varieties are undervalued compared with their rarity. For example, I just bought a variety with only 2 coins graded in all grades by PCGS and paid less than $100 for it.



    Another question is why two bidders have put their bids in so early in the process. There is very little benefit to showing your cards early, and there is a lot of benefit in waiting until near the end of the auction. It could be that these two bidders don't understand that part of the auction process, or disagree with the above statement.

    An authorized PCGS dealer, and a contributor to the Red Book.

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    MilkmanDanMilkmanDan Posts: 3,768 ✭✭✭✭✭
    Originally posted by: Realone

    Sounds like the consignor and his buddy pushing it up well before to increase excitement and number of views too.




    Not this. In this case I know the consigner as he previously offered me the coin. He's definitely not one to do this.
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    MilkmanDanMilkmanDan Posts: 3,768 ✭✭✭✭✭
    Originally posted by: RichieURich

    Without commenting on this particular coin, there could be a number of reasons that two bidders are bidding very high on a variety. It could be that the bidders haven't seen many examples of the variety for sale, it could be that there are very few certified by PCGS and maybe this one is at or near the top of the population, it could be that some people just like to own a variety which appears to be rare. In my opinion, many varieties are undervalued compared with their rarity. For example, I just bought a variety with only 2 coins graded in all grades by PCGS and paid less than $100 for it.



    Another question is why two bidders have put their bids in so early in the process. There is very little benefit to showing your cards early, and there is a lot of benefit in waiting until near the end of the auction. It could be that these two bidders don't understand that part of the auction process, or disagree with the above statement.




    Rich I generally agree with you. Some varieties are tough to put a price on because they are pretty rare. The pricing among a circle of collectors may be wildly different than at public auction because the general public doesn't have access to the coins passed between friends.



    As for why the bidding has taken off so early, I can't understand it. What do they say about a fool and his money...
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    TopographicOceansTopographicOceans Posts: 6,535 ✭✭✭✭
    Perhaps the plan is to sell it to me on eBay?
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    koynekwestkoynekwest Posts: 10,048 ✭✭✭✭✭
    I absolutely agree with Rich, especially on how under rated the better varieties are.
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    koynekwestkoynekwest Posts: 10,048 ✭✭✭✭✭
    I also agree with this:



    I see this and I think about what I enjoy with varieties. It's the hunt, and the camaraderie with other collectors of the same series. Apparently it's also saving me big bucks.
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    LakesammmanLakesammman Posts: 17,678 ✭✭✭✭✭
    After reading this, there aren't enough specifics to comment on. image



    "My friends who see my collection sometimes ask what something costs. I tell them and they are in awe at my stupidity." (Baccaruda, 12/03).I find it hard to believe that he (Trump) rushed to some hotel to meet girls of loose morals, although ours are undoubtedly the best in the world. (Putin 1/17) Gone but not forgotten. IGWT, Speedy, Bear, BigE, HokieFore, John Burns, Russ, TahoeDale, Dahlonega, Astrorat, Stewart Blay, Oldhoopster, Broadstruck, Ricko, Big Moose, Cardinal.
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    MrEurekaMrEureka Posts: 24,739 ✭✭✭✭✭
    Buying any type of coin through a major auction is a good way to lose money.

    It also happens to be a great way to make money.
    Andy Lustig

    Doggedly collecting coins of the Central American Republic.

    Visit the Society of US Pattern Collectors at USPatterns.com.
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    EagleguyEagleguy Posts: 2,264 ✭✭✭✭✭
    Originally posted by: Realone
    Sounds like the consignor and his buddy pushing it up well before to increase excitement and number of views too.


    HA does not allow the consignor to bid on his/her own coins. I suppose it is possible if the consignor has two accounts, but unlikely.


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    amwldcoinamwldcoin Posts: 11,269 ✭✭✭✭✭
    Originally posted by: Eagleguy

    Originally posted by: Realone

    Sounds like the consignor and his buddy pushing it up well before to increase excitement and number of views too.




    HA does not allow the consignor to bid on his/her own coins. I suppose it is possible if the consignor has two accounts, but unlikely.









    You forget about the friend network.



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    TwoSides2aCoinTwoSides2aCoin Posts: 45,086 ✭✭✭✭✭
    One of these days… I may.
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    LindeDadLindeDad Posts: 18,766 ✭✭✭✭✭
    Sounds like the pond got restocked.
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    HydrantHydrant Posts: 7,773 ✭✭✭✭✭
    The fix is in.
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    Originally posted by: Realone
    Oh boy, come on, the network is so thick it isn't funny. If you think consignors don't bid/push up prices on their own coins you are sadly mistaken.


    True dat!

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