Prices Realized at Auction vs. Prices Asked on the BST Forum
msch1man
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I've read posts/articles from several dealers about coins sitting in their inventory and not getting bought and then realizing significantly higher prices when auctioned (without the benefit of a return policy). I've noticed this myself several times over the past 6 months where a coin I recognize and track has brought 25%+ more at auction than it was listed for in the dealer's inventory.
Got me wondering if the same thing happens for collectors who list coins on the BST forum that go unsold and eventually auction them off. There have been coins listed that mentioned they were going to be auctioned off, but I've never been able to track the BST forum price vs. the price realized at auction. For anyone willing to share, doesn't have to be a $$$ amount, could be a % +/-, I'd be curious how you did at auction vs. what your listing price was on the BST forum. Anyone willing to share?
Got me wondering if the same thing happens for collectors who list coins on the BST forum that go unsold and eventually auction them off. There have been coins listed that mentioned they were going to be auctioned off, but I've never been able to track the BST forum price vs. the price realized at auction. For anyone willing to share, doesn't have to be a $$$ amount, could be a % +/-, I'd be curious how you did at auction vs. what your listing price was on the BST forum. Anyone willing to share?
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Or was it greed, fear and greed?
At auction the exposure is exponentially multiplied.
It is also important to realize that many unsold coins in inventories/bst that get auctioned realize much lower prices.
Reason there could easily be the asking price was way too high
Recently heard an art dealer say that the three reasons people buy at auction is fear, greed and fear.
Or was it greed, fear and greed?
Fear of what?
If what the OP suggested were even REMOTELY true, dealers who make such claims would be VASTLY better off auctioning ALL of their inventory even if some of it or a lot of it brought less than their asking. Whether it be coins or sports cards, the OVERWHELMING majority of items that I took losses on (especially big ones on a percentage basis) were the items I bought at a fixed price.
Just to clarify a couple of points...
I'm definitely not stating that all dealer's coins sell for more at auction. I follow one particular dealer's inventory very closely and just naturally notice when things disappear from inventory and show up in an upcoming auction. I'm sure I don't notice ALL of the coins that this dealer sends to auction, but of the ones I have noticed over the past 6 months or so, they have ultimately sold at auction for more than the asking price at the time they were auctioned.
When I mention what a coin "sold" for auction, I'm talking about what the buyer paid (i.e. including the juice), so it isn't always the case that the dealer would be better off in the auction vs. selling out of inventory.
This is all kind of beside the point I was curious about...what I'm really curious about is how average collector's fare in auction vs. a venue like the BST forum (and conversely, whether average collectors are better buying off a venue like the BST forum vs. an auction). I've seen some really good coins listed on the BST forum for prices that appear to be very fair (i.e. less than what appear - yes through pictures only - to be comparable auction results). Was just curious if anyone has had a coin go unsold on the BST forum and sent it to auction and willing to share how they did.
fundamental reason.... When I lived in Washington State and dealt in firearms, I went
to a State Police auction of confiscated firearms. People were bidding higher than they
could hav e bought the gun new just down the street at a store. Unbelievable.
Cheers, RickO
Heritage closed results as well vary, many will say an item sold on a given day at heritage for a price. The same coin often will be sold later for a lower amount. Many areas of the market are saturated and in decline and the heritage number a year or 2 back is not always a good indicator of the current market value.
I tend to think that Great Collections have a better real market idea since they are becoming a leader rapidly in there niche.
Ebay as well you have 14% or so after all the fees are stacked on and there is risk as far as scammers far more then the BST.
The BST seller that wants a heritage number or high ebay closed sale number may be left standing for a while. They are not equal venues.
The BST has a lot lower risk when common sense is used. The BST has no fees.
I see several coins for weeks or months on the BST that are over valued and a high retail price point. The sellers that are rational move coins.
If you want a perceived higher number on heritage sell on heritage. Many will tell you though after all is said and done the landed proceeds are often lower then a reasonable BST price.
Recently heard an art dealer say that the three reasons people buy at auction is fear, greed and fear.
Or was it greed, fear and greed?
Fear of what?
Fear of loss
Recently heard an art dealer say that the three reasons people buy at auction is fear, greed and fear.
Or was it greed, fear and greed?
Fear of what?
FOMO = Fear Of Missing Out
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I have noticed that a lot of BST coins, seemed to be optimistically priced compared to real market value. Some are quite nice, but got a real nice price as well. I see some eventually get sold, and others languish. Makes me wonder if the ones sold were reduced or a buyer finally came along. Intrestingly, over the past year or too, I was able to buy a few coins from board members at what I thought was an optimistically priced (price) because I had two buyers who did not care about price, and just wanted the nice coins. Recently both of them have passed on, and I repurchased their estates at a price more in line with current prices, (basically figured them at real numbers) I have sold several of them over the past two months and prices realized at auction, several were way off what the price they were originally offered for on the BST in a not too far distant past.
jim
Recently heard an art dealer say that the three reasons people buy at auction is fear, greed and fear.
Or was it greed, fear and greed?
If you want something, buy it wherever you can get it
While I don't have an answer to OP's question, my experience is that BST is "competitive" at best. The advantage however is that in that scenario, you normally get a return option. In an auction, no such luck.
Just saying.
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Based on the poll take here, albeit non-scientific but nevertheless directionally telling, subtracting out the dealer population who need to buy cheap and sell at -- more than cheap to make a profit -- there are probably less than 100 pure collectors left on these CU forums who might be potential buyers. That's a worse target market than even the lamest coin show, which will get more than 100 walkins during an 8 hour day.
So the BST has dramatically declined in terms of venue value, unless -- not always but by and large -- you are willing to move very liquid coins on the cheap, or have some thing truly special that someone happens to want on that specific day (luck).
Just my 10 cents...because from where sit I now do less than 1 transaction on the BST per month average (and it used to be 15+ per month 10 years ago), and mostly buying now, and will almost always sell my duplicates, etc., coins for more money outside the BST -- but I now understand the primary reason, which is the CU forums has become the tippy top of the tippy top of the pyramid of the collector population and you can only fit about 100 collectors on that sharp point
My impression is that the BST is full of dealers and flippers and far fewer collectors than once dwelled here. As such, the prices realized/offers may have dropped considerably.
+1 This is my impression as well, I used to look there daily for coins. Now less than once a week.
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In theory a BST coin can be discounted 15% easily since there is no Sellers Premium. At auction I'd guess on a very rare day the BST price might be exceeded but I'd think that's probably 1 in 25 kind of odds. People buy in auctions to get a deal normally.
While I don't have an answer to OP's question, my experience is that BST is "competitive" at best. The advantage however is that in that scenario, you normally get a return option. In an auction, no such luck.
Why would someone who paid the juice at auction not try to recover it when selling on the BST?
The problem is that someone who would pay the seller's asking price here is never going to come here looking for a/the coin.
If I list something here it's because I'd like to at least get my cost back.