Does Anyone Use The Major Auction Houses?

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Originally posted by Susanlynn9

A very astute observation about that first bid, Fred. We noticed that a long time ago. That's why a coin that is started so low that it is practically guaranteed a bid can go for much higher than a coin that is started at around half of retail. We've had $10-15 coins that we have started at $4.95 and others that started at $.99. Most of the ones started at $.99 will reach close to retail, while often the ones started at $4.95 will only get a couple of bids or go for the opener. It is true that bids beget bids.

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This is also the reason I've used a sniper service for some years: if I see a coin I want and nobody has bid on it, I won't draw attention to it by submitting a bid but instead will snipe it, hoping that nobody else bids on it. This works perhaps 75% of the time. I use a sniper almost exclusively unless I'm just bidding casually. But, I don't believe there's any way to snipe with these major auctions where online bidding is in competition with floor bids; I'm not even sure the auction houses would permit electronic sniping even if it were technologically feasible.

It's nice to hear about a positive experience. Thanks, Zak!

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Originally posted by Morgan Fred

After 1 PM yesterday when B&M closed bidding to pre-session internet bidders, I tried switching to the live auction section to monitor the auctions and perhaps even bid some more. However, I was disappointed to find that the software for these auctions required Windows only, leaving us non-Windows types out in the rain. I would think they would use platform-immaterial software so that everyone could watch their live auctions and be able to submit bids, not just the 80% who use Windows; those of us with Macs tend to be the ones with money.

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Or those of us without money, but who prefer Mac os

Coinguy1 you got this backwards. Buyers pay 15% and sellers pay 5%.

Anyways, back to the topic. None of the major services use the "sniper" feature, and hopefully never will. I know that it does help in the online auctions for the buyer, but often the better material is not available in the mass auctions.

My thought while bringing this topic up was that with the major services, you have far more protection. Coins are certified or accurately graded by the service with guarantees of authenticity and grade. Coins will be shipped and all fees paid. You don't fall into the whole "Buyer Beware" scenerio.
Many of the major auctions are attracting lower priced material these days. Heritage often offers coins in the internet only auctions that sell for less than dealer bid. Comparing this with coins sold on ebay is very even. So why would collectors use a service that is "buyer beware" versus a well known and trusted source?

Now granted I only use major auction houses for buying and selling, but I do keep an eye on ebay to see what collectors are thinking and buying. I know that what I offer is outside the normal collectors channels, but I love learning new things. Thanks all!

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Originally posted by coinguy1

Mike, on a practical basis the 15% seller's fee comes out of the seller's pocket, not the buyer's pocket.

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This statement makes it sound like you are saying the seller pays the 15%. If I am reading that wrong, I am sorry. I thought that if perhaps it confuses a person who uses these services all the time, it may also confuse some who do not.

Based on Coinguy1's explanation I would expect to pay 15% less for privately sold coins! Since dealers bid on these coins as well, all of the associated fees are ultimately passed on to the retail buyer. After all for the most part who's doing the selling? My comment in the beginning was aimed at both buyers and sellers alike. Mike

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Originally posted by Mike

Based on Coinguy1's explanation I would expect to pay 15% less for privately sold coins! Since dealers bid on these coins as well, all of the associated fees are ultimately passed on to the retail buyer.

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I can understand your thinking here, but most of the dealers who I see on a regular basis on the bidding floor do very little retail business. Most of the larger dealers trade actively among other dealers. Using my company as an example, we may sell 2 or 3 coins per year to a collector. This includes the coins at auction. Now as for buying coins, if you owned a key date, semi key date, or condition rare coin, where would you sell it? I often hear about using ebay prices and while that is all fine and dandy for common run of the mill coins, it does not do much for the key coins.
If you have the minimum dollar amount to qualify for the Bowers auctions, your key coin will do much better 99% of the time. Why? The answer is relatively simple. People trust Bowers and Merena. They know what they are getting, and they know who they are getting it from.
When I give advice to a collector it is the same that I use for myself and my company. When I spend my hard earned money, I want to know that it is safe. I only deal with reputable people based on my research. I would much rather pay a little extra to know "what" I am getting than get a bargain on "chance" material.

Lastly, dealers passing it onto the customer. That really sounds good on paper, but how many of you let the dealer set the price? There are way too many ways to check the value of a coin these days. If you are paying whatever the dealer marks on his coins without knowing the coins value, we need to talk I will recommend better dealers to you.