Options
Recently auctioned coins up for auction again—how does it impact your bidding?
P0CKETCHANGE
Posts: 3,454 ✭✭✭✭✭
Often times I'll research a coin I'm considering bidding on and find that it recently hammered at the same or another auction house. I tend to raise an eyebrow when I see this, and it sometimes dissuades me from bidding on the coin at all.
While there are many reasons to re-auction a coin, and there's usually no way to be certain of the reason in any individual situation, what are the most likely reasons for this to happen? Does that consideration impact your buying behavior?
How about when a single coin has multiple auction sales within the past few years?
Nothing is as expensive as free money.
2
Comments
I think in many such situations, the owner bought the item back in the original auction (either directly or via bidding by proxy). In other words, the item didn't meet their secret reserve price. Sometimes, the secret reserve is lifted for a subsequent auction.
In my opinion, it should not affect my assessment of value or my behavior at all. It's the same coin, after all.
I suppose you might worry that there is a defect that is not obvious, so maybe call the auction house and see if someone will look at it for you.
It's also possible, of course, that there was non-payment if it's the same house.
Sometimes, it's just that the coin was asking too cheaply so someone wanted to make money on it and scooped up the bargain.
All comments reflect the opinion of the author, even when irrefutably accurate.
@dcarr @jmlanzaf Interesting...I hadn't even considered that reason. Wouldn't the seller have to pay the auction fees twice? Also, a lot of times I see the second sale price lower or only marginally higher (not enough to cover paying fees twice). If it matters, most of the situations I'm referring to are <$5k coins, not trophy coins.
Nothing is as expensive as free money.
It depends on who the buyer is and what the auction house is. If it's a dealer who gets hammer + 10%, then the fees are only 10-12%;at HA or SB. And if they are a big consignor, maybe they'll give them hammer+15 the second time around- if it's at the same house.
If it's at a different house, it's probably not the consignor who bought it.
I will admit that house buyers annoy me a little. It is effectively a hidden reserve. But it also means that it's very hard to get a bargain.
If it sells for close to the samr the second time around, then the seller probably lost money. But, that happens in business. You just hope you're savvy enough to win more than you lose.
All comments reflect the opinion of the author, even when irrefutably accurate.
In theory it wouldn't impact my bidding. The value to me remains the same.
In practice it does give me pause, making me think more about it. Doesn't usually hold me back, though.
Rare-Change.com - Low listing fee
Wouldnt change my bidding at all. If i liked the coin the first time, I'd bid exactly the same the second time around if I still needed it.
There are a multitude of reasons this can happen. For me, I've accidentally bought a duplicate of something I already had or bought an even better one shortly after the auction and now the auction coin is a duplicate to get rid of.
I've also found on several occasions that when you factor in the out of town travel costs to go to lot viewing to view a coin, it was actually cheaper for me to just buy it in the auction, and relist it right after if I didnt absolutely love it. The amount of money I 'lost' reselling the coin vs. what I paid was less than what I would have spent to travel to lot viewing.
If the coin meets my needs (type, TPG, quality, etc.) and the price is acceptable, then I don't care how many times it's been offered nor how "stale" it is. I will usually try to determine why I think it is being re-sold. Often times it is due to lack of crossover or to get a higher price. Re-auctioning for a higher price is usually a hit or miss proposition.
Besides, freshness is a dealer concern. I hold coins in my primary collection a long time, so lack of freshness is often a buying opportunity.
Would make me wonder, but i'd bid if I liked it.
I've seen it happen with multiple coins that I have followed over the years. A few I have won for a lower amount than the prior (relatively recent) sale, some I paid more for, and others I lost. Besides the reasons already mentioned, something else I have noticed is that some sellers are quick to "flip" a coin. There have been coins that sold at auction, showed up on IG (occasionally on more than one IG page, and then were back at the same auction house. So the coin could have been resold several times and then the last person in the chain sent it back thinking it would bring even more at auction or because they could not find anyone else to sell it to. With certain toners, the market has been strong so there have been cases where a coin goes back to auction 6-12 months later and brings several hundred or more above the first result (on sub $2k coins).
And in general, it does not matter to me how many times a coin has sold if I think it is a potential keeper for the collection. If I'm on the fence (not sure if the eye appeal will be as good in hand), then I'll bid under the previous result.
The coins I buy are not that easy to find. It doesn't happen that often; but, when I win a coin for less than the seller paid, I do a happy dance.
It depends on the price point of the coin. If expensive and resold many times recently, I assume something is wrong with the coin and would not bid. Of course this wouldn’t matter if I had been able to view it in hand and determine its acceptability.
"She comes out of the sun in a silk dress,
running like a water color in the rain...."
It’s usually a red flag that causes me to stand down. I might consider it, if the price was right, but I certainly wouldn’t pay top dollar or get into a bidding war.
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
If I see a coin that has been auctioned off multiple times in a short period of time makes me think that the coin might have issues. I'll track it but I probably won't bid.
Mike
My Indians
Dansco Set
It really depends on the coin(s) and the situation(s). I try to assess what I'm looking at and the current situation each time.
Sometimes, for various reasons, coins, and even larger collections get sold fairly quickly after purchase. Sometimes, of course, it's a secret reserve. And sometimes it might be an actual purchase, but in-hand it didn't meet the buyer's expectations, and so it was put back up for a quick turnaround (which can often be negotiated with favorable auction terms).
One of the best auctions (for me), was a situation where a large collection was put together very quickly (at at mostly premium prices), that came back around soonafter, in a large auction of the entire collection. Even some of the really good ones in that sale went for 65 to 75c on the dollar compared to what they sold for the time before ... in some cases just 8 months earlier.
I've also been an underbidder only to see the coin soon after. If I know it well enough, I'm still in, and have been fortunate enough to pick some of those up for a little less than my losing bid the time before.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
Todd - BHNC #242
I would never know, but it wouldn't affect my decision even if I did know.
The only time I have ever re-auctioned a coin was when GC had a nice 1895-O AU50 Morgan dollar and a nice 1895-O AU53 Morgan dollar coming up at the same moment. I would have been happy with either one, so I threw in last-second bids on both; and got both. I paid for both, and asked GC just to put the AU50 back on auction; they did, and I got almost every cent back when it sold for more the second time than the first time.
That's a neat story and you are a true gentleman.
It would not really change my perception or bidding unless the new auction photos showed something different about the coin. Chances are I would bid the same as before assuming I still want/need the coin.
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.