Is it a good thing when the auction house "wins" your consigned coin?

BAJJERFAN

@Coinstartled said:

@BAJJERFAN said:

@bigjpst said:

@Coinstartled said:
Plenty of good discussion regarding how the auction house makes out. Let's expand this to any dealer winning a consignor's lot at auction...and how it affects the seller.

Ish Kabibble and sons sells your lot which hammers for $5000 plus a 15% fee so the total is $5750. You get 100% of hammer which of course would be $5000. Kibbitzer and Co. wins the coin and adds it to their inventory at a substantial mark up.

So what did you get for the $750 in fees and 5 month turnaround time if a dealer might have offered you $5750 in the first place?

My logic is that the value of the auction house is to get your coins into the hands of retail collectors and not another middleman.

Your Logic assumes there is a retail collector other than yourself. Or that that person is viewing that particular auction. Or that person is willing to buy from an auction without representation.

Or that the dealer who won his lot would have been willing to give him the $5750.

Had the dealer offered $5000, the consigner would have still saved 4 or 5 months waiting for the auction cycle to complete.

True.

Justacommeman

@Coinstartled said:

@BAJJERFAN said:

@bigjpst said:

@Coinstartled said:
Plenty of good discussion regarding how the auction house makes out. Let's expand this to any dealer winning a consignor's lot at auction...and how it affects the seller.

Ish Kabibble and sons sells your lot which hammers for $5000 plus a 15% fee so the total is $5750. You get 100% of hammer which of course would be $5000. Kibbitzer and Co. wins the coin and adds it to their inventory at a substantial mark up.

So what did you get for the $750 in fees and 5 month turnaround time if a dealer might have offered you $5750 in the first place?

My logic is that the value of the auction house is to get your coins into the hands of retail collectors and not another middleman.

Your Logic assumes there is a retail collector other than yourself. Or that that person is viewing that particular auction. Or that person is willing to buy from an auction without representation.

Or that the dealer who won his lot would have been willing to give him the $5750.

Had the dealer offered $5000, the consigner would have still saved 4 or 5 months waiting for the auction cycle to complete.

Maybe just maybe the seller of the coin didn't want the 5k and thought he could get more at auction. This actually happens. In your scenario the dealer/ auction house actually bails out the seller.

mark

Coinstartled

@Justacommeman said:

@Coinstartled said:

@BAJJERFAN said:

@bigjpst said:

@Coinstartled said:
Plenty of good discussion regarding how the auction house makes out. Let's expand this to any dealer winning a consignor's lot at auction...and how it affects the seller.

Ish Kabibble and sons sells your lot which hammers for $5000 plus a 15% fee so the total is $5750. You get 100% of hammer which of course would be $5000. Kibbitzer and Co. wins the coin and adds it to their inventory at a substantial mark up.

So what did you get for the $750 in fees and 5 month turnaround time if a dealer might have offered you $5750 in the first place?

My logic is that the value of the auction house is to get your coins into the hands of retail collectors and not another middleman.

Your Logic assumes there is a retail collector other than yourself. Or that that person is viewing that particular auction. Or that person is willing to buy from an auction without representation.

Or that the dealer who won his lot would have been willing to give him the $5750.

Had the dealer offered $5000, the consigner would have still saved 4 or 5 months waiting for the auction cycle to complete.

Maybe just maybe the seller of the coin didn't want the 5k and thought he could get more at auction. This actually happens. In your scenario the dealer/ auction house actually bails out the seller.

mark

Sure it happens. Seller believes that his fee will put him before a large audience that is anxious to pay a fair if short of retail price.

Justacommeman

@Coinstartled said:

@Justacommeman said:

@Coinstartled said:

@BAJJERFAN said:

@bigjpst said:

@Coinstartled said:
Plenty of good discussion regarding how the auction house makes out. Let's expand this to any dealer winning a consignor's lot at auction...and how it affects the seller.

Ish Kabibble and sons sells your lot which hammers for $5000 plus a 15% fee so the total is $5750. You get 100% of hammer which of course would be $5000. Kibbitzer and Co. wins the coin and adds it to their inventory at a substantial mark up.

So what did you get for the $750 in fees and 5 month turnaround time if a dealer might have offered you $5750 in the first place?

My logic is that the value of the auction house is to get your coins into the hands of retail collectors and not another middleman.

Your Logic assumes there is a retail collector other than yourself. Or that that person is viewing that particular auction. Or that person is willing to buy from an auction without representation.

Or that the dealer who won his lot would have been willing to give him the $5750.

Had the dealer offered $5000, the consigner would have still saved 4 or 5 months waiting for the auction cycle to complete.

Maybe just maybe the seller of the coin didn't want the 5k and thought he could get more at auction. This actually happens. In your scenario the dealer/ auction house actually bails out the seller.

mark

Sure it happens. Seller believes that his fee will put him before a large audience that is anxious to pay a fair if short of retail price.

Assuming your hypothetical auction isn’t held at a Knights of Columbus Hall but at a reputable auction house that’s exactly what the consigner received. Lots of eyeballs and potential buyers. What’s a better test of true price discovery?

m

Coinstartled

C'mon Mark. It is not unusual for a pricey coin to fall through the cracks. We all have our auction "rip" stories.

Justacommeman

@Coinstartled said:
C'mon Mark. It is not unusual for a pricey coin to fall through the cracks. We all have our auction "rip" stories.

Exactly. That's why in your scenario the auction house actually saves the day for the consigner. The auction house was the back stop.

As a consigner in an auction I want the most eyes and wallets on my coin including the house. I certainly don't want it to fall through the cracks and be part of a rip story on an Internet chat room. In your example I'm glad I used your auction house. They saved me money.

What's the name of your hypothetical auction house? I might want to use them in the future.

mark

Coinstartled

@Justacommeman said:

@Coinstartled said:
C'mon Mark. It is not unusual for a pricey coin to fall through the cracks. We all have our auction "rip" stories.

Exactly. That's why in your scenario the auction house actually saves the day for the consigner. The auction house was the back stop.

As a consigner in an auction I want the most eyes and wallets on my coin including the house. I certainly don't want it to fall through the cracks and be part of a rip story on an Internet chat room. In your example I'm glad I used your auction house. They saved me money.

What's the name of your hypothetical auction house? I might want to use them in the future.

mark

17.5 to 25% is a pricey backstop.