S/B Auction lot reserves

JohnHarper · January 29, 2014 11:09PM

There is a 1792 copper disme in the next Stack's Bowers auction. The last time I looked it had an opening bid of $20. This morning it has a bid of $140,000 with a reserve of $145,000. It looks to me like S/B posted a bid just under the reserve so the next bid will be over. Would they do that? Is that ethical?

Author1 · January 29, 2014 11:10PM

You have never seen David Lawrence "Auctions" apparently.

TwoSides2aCoin · January 29, 2014 11:14PM

This isn't the world of ethics , it's the coin world. Protectionist measures will be taken despite man's judgement of integrity or character on the basis of an entity's strategies. Period. I don't care who has it. It's a matter of who wants it.

Hope that doesn't sound callous or criminal.

LindeDad · January 29, 2014 11:22PM

Under the TOS most major auction house's can and do just that it's part of the game. They can and sometimes bid on their own auctions. In this case I do not have direct info but know it's allowed by most states action laws.

pruebas · January 30, 2014 12:05AM

I don't see anything wrong with it. The consignor can set his reserve as he sees fit, as long as SB agrees to it on that basis.

At least you know what it will take to buy the coin. You can pass or play with that info.

Would you rather be bidding against a hidden reserve and keep getting outbid up to that level? This way is very transparent.

By the way, HA does this too. Bidding usually starts at half lower estimate for several weeks before the auction. Once reserves are posted, the lot price jumps to one increment below the reserve no matter where current bidding currently is.

joebb21 · January 30, 2014 1:03AM

Both SB and Heritage post there reserves 7 days before the auction goes live. When you looked (Say 3 days ago) there was a top bid of $20. Now that its 7 days before, the reserve of $145k gets posted.

Nothing unethical or abnormal in my mind as this is how its been done for years (by both heritage and stacks)

keyman64 · January 30, 2014 2:18AM

<< <i>There is a 1792 copper disme in the next Stack's Bowers auction. The last time I looked it had an opening bid of $20. This morning it has a bid of $140,000 with a reserve of $145,000. It looks to me like S/B posted a bid just under the reserve so the next bid will be over. Would they do that? Is that ethical? >>

Pretty common thing to do as others have said.

DeepCoin · January 30, 2014 3:29AM

No big deal, everyone knows the first bid is the minimum they will take. If you don't want to spend that much, don't bid. Piece of cake, nothing hidden.

D · January 30, 2014 4:10AM

I also don't see a problem with it. I can understand why it might be sort of a bummer but it's not hurting anyone.

There's also plenty of ways an auction house can bid up their own items without being called out for "shilling".

Would they do that? Sure, why not

Is that ethical? Sure. I think the ethics would become questionable in cases of more specific chicanery. Intentionally misrepresenting something, date, mintmark, knowingly selling a counterfeit item advertised otherwise. Their methods aren't intended to fool anyone.

-D

ItsOnlyMoney · February 2, 2014 3:28AM

If you spent $135K on that coin to buy it you sure want to protect your investment with a reserve that covers that cost plus a little profit. Don't forget that if the coin don't sell at the $145K minimum the sellers sets, they owe SB a 10% commission on the reserve the seller sets. That seller losses $14,500 to Stack's.

Unknown · February 2, 2014 3:38AM

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MsMorrisine · February 2, 2014 5:16AM

Common on stacks and heritage

They can either start bidding at a high bid or just under the reserve.

You weren't going to take it at $25 anyway.

RichieURich · February 2, 2014 5:48AM

<< <i>Common on stacks and heritage

They can either start bidding at a high bid or just under the reserve.

You weren't going to take it at $25 anyway. >>

Most definitely not. I would have bid $30 or maybe even more!

Coinosaurus · February 2, 2014 6:06AM

<< <i>If you spent $135K on that coin to buy it you sure want to protect your investment with a reserve that covers that cost plus a little profit. Don't forget that if the coin don't sell at the $145K minimum the sellers sets, they owe SB a 10% commission on the reserve the seller sets. That seller losses $14,500 to Stack's. >>

Isn't that all negotiable? Two scenarios:

a) consignor is a good client and pays less

b) auction house likes the prestge of presenting high-powered coin and agrees to zero buyback fee if reserve not met

ItsOnlyMoney · February 2, 2014 7:05AM

If only Stack's was so big hearted.
I do a lot of sales through Stack's. I have the American Plantation side-way 4 in their current auction. Stack's recommended a $2000 reserve for the previous auction. Coin didn't sell and I paid them $200 for the pleasure. They're there to make money.

BillJones · February 2, 2014 7:43AM

<< <i>If only Stack's was so big hearted.
I do a lot of sales through Stack's. I have the American Plantation side-way 4 in their current auction. Stack's recommended a $2000 reserve for the previous auction. Coin didn't sell and I paid them $200 for the pleasure. They're there to make money. >>

$200 sounds high. I thought that the buy back fees were something like 4% which would be $80.

ItsOnlyMoney · February 2, 2014 10:02AM

I wish, it's 10%.
This is from personal experience.

MsMorrisine · February 2, 2014 12:20PM

sounds like much effort needs to be placed in determining ones own reserve.

S/B Auction lot reserves

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