Dealers bidding at auction

Gazes

When dealers bid for coins at auction for their general inventory (not for a client or a want list ) do they normally only bid up to what they consider wholesale?

Justacommeman

No.

mark

BustDMs

They bid up to what they want to pay for the coin

amwldcoin

LOL! If a dealer buys it for resale then that is the new wholesale!

DollarAfterDollar

I attend a fair share of auctions with dealers in attendance. They normally target coins they think are easily movable whether they have a client for the coin or not. They will generally not overpay for anything unless it's outstanding for some reason or another.

When they sell their asking price is typically 20-25% more than they paid but they will deal if the situation calls for it.

roadrunner

@Gazes said:
When dealers bid for coins at auction for their general inventory (not for a client or a want list ) do they normally only bid up to what they consider wholesale?

Logically yes. But what one dealer considers "wholesale" could be the next guy's "full retail" or "2X retail." If you consider 100 dealers might be bidding on an auction lot, and only 1-3 of them are competitive in the end, that suggests the vast majority of losing bidders may have underestimated "wholesale." Whatever they pay, they are intending to make money on the coin, or at least do no worse than breaking even. Sometimes dealers just keep their hands up until they win the lot. And whatever they paid, they figure there's a collector (or dealer) out there somewhere who will pay them more, because they were "smart enough to buy it." Wholesale and Retail values can widely overlap on "special" and generally unavailable or fresh coins depending on the "who."

ricko

I have been to firearm auctions and I can tell you that those auctions get crazy.... never been to a live coin auction...Cheers, RickO

CoinRaritiesOnline

@Gazes said:
When dealers bid for coins at auction for their general inventory (not for a client or a want list ) do they normally only bid up to what they consider wholesale?

I bid what I think it will take to actually win.

BillJones

Dealers only bid up to the level where they think that they can make a reasonable return on the purchase. That means that they are are not going to bid $1,000 if they can only get $1,010 for it. That is an extreme example, but you get my drift.

7Jaguars

And that is how I try to judge my bids - figure out where they need to go. In an expanding market with rising prices, it is very difficult to hit a moving target. Especially, as a collector even worse if its an up and down market. Dealers sometimes seem to me to be betting on being able to get a retail price to their "wholesale" bid and so gamble a bit if it seems likely they have a good profit to be made; but extra hard if they are commissioned as a bidder which is a variable not so far mentioned.

ctf_error_coins

Since I am buying coins for resale, I only bid up to what I think is a wholesale price. The good thing about being a dealer is that, when the price goes over wholesale, it is very easy to walk away, not so much for the collector.

TwoSides2aCoin

I can't speak for anyone. I can speculate on anything.

mustangmanbob

Dealers (myself included, but not coins) wear many hats:

1) Stuff for inventory
2) Stuff for a their favored client base
3) Stuff for a specific person
4) Stuff they have been asked to purchase for someone else
5) Stuff for their own collection

All of these will have different amounts.

For given coin, it might be
1) $200
2) $225
3) $280
4) $310
5) $385

Cougar1978

My bids based on a percentage of what I think can sell coin for which allows me a decent return / quick turnover strong retail. If there is auction juice bid reduced accordingly. I'm buying the coin hoping for quick turnover not long term hold of capital asset which does not pay dividends or interest.

Better to lose out on item than pay too much.

Since have more than enough coins and currency fill up cases at shows no interest in buying in this flat to south of steady market unless at my price - buying it right.

If eBay will research CF and bid may be 50-70 pct MV Using AS.

roadrunner

@ErrorsOnCoins said:
Since I am buying coins for resale, I only bid up to what I think is a wholesale price. The good thing about being a dealer is that, when the price goes over wholesale, it is very easy to walk away, not so much for the collector.

I'm a collector and can walk away from an auction just as easily as any dealer....probably even easier since I don't have to keep on buying inventory to make a profit.

2ndCharter

When they sell their asking price is typically 20-25% more than they paid but they will deal if the situation calls for it.
Where can I find dealers like this? I can name several dealers (and these are people who will have tables at the FUN show) who typically mark up their major auction purchases 100% - 200% and more. Of course, that could also explain why they've been sitting on the items for 10 years or more.......