Comment in QDB's new book on Auctions--is it common for auction houses to bid from the floor?
Longacre
Posts: 16,717 ✭✭✭
I have been reading the new QDB book on coin investing. It is an excellent book and hopefully it will make its way into several people's stockings. The chapter on coin auctions is very interesting. In the section on prices and minimums at auction, it discusses a hypothetical 1879 Flowing Hair Stella, which the consignor wants to place a $100,000 reserve on. The book goes on to say that the bidding may open at $80,000, to get some "action" going, but until it crosses the $100,000 mark, the house or book will also be bidding. Then it goes on to state:
"In other instances, an agent or representative of the auctioneer (shill is the nasty word for this) will be in the audience, unidentified, and will be bidding for the house. In other instances the autioneer may make an arrangement with a dealer friend who will run the reserve bids (while giving the appearance that the person is bidding on his or her own account)."
This raises some questions. Does this happen often? Does anyone know which auction houses have this method as a policy? Does this unfairly affect pricing for the bidders? Does the identity of the "shill" have any impact on the prices or the bidding (for example, if a well-known gold expert starts to bid, will that generate other bids)? Also, if the well-known gold expert bids to $100,000, and then drops out of bidding because of his prior arrangement with the auciton house, would that influence another bidder to stop bidding at that point? Does this cause an issue for the consignor? Any other comments?
"In other instances, an agent or representative of the auctioneer (shill is the nasty word for this) will be in the audience, unidentified, and will be bidding for the house. In other instances the autioneer may make an arrangement with a dealer friend who will run the reserve bids (while giving the appearance that the person is bidding on his or her own account)."
This raises some questions. Does this happen often? Does anyone know which auction houses have this method as a policy? Does this unfairly affect pricing for the bidders? Does the identity of the "shill" have any impact on the prices or the bidding (for example, if a well-known gold expert starts to bid, will that generate other bids)? Also, if the well-known gold expert bids to $100,000, and then drops out of bidding because of his prior arrangement with the auciton house, would that influence another bidder to stop bidding at that point? Does this cause an issue for the consignor? Any other comments?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
Comments
someone sitting somewhere with a computer bidding on most lots and if they won, telling the auctioneer who the bidder number was on that lot
My ad is on page 36
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>Is that the experts guide to collecting and investing?
My ad is on page 36
Yes, and I noticed your ad. If I send you my copy, can you autograph it for me?
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
you figure it out
<< <i>
<< <i>Is that the experts guide to collecting and investing?
My ad is on page 36
Yes, and I noticed your ad. If I send you my copy, can you autograph it for me?
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870