Reserve Prices

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True auction format is to list the item with no reserve and a low starting bid and let the coin sell itself

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I've been waiting a long time to ask this question:

Why is starting an auction at $0.99 a true auction? What makes that starting price any more of a true auction then starting at $25? Or $2500? And why not 1 cent?

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I used to go to a lot of Brick and Mortar estate type auctions. I never heard the term "True auction" there. I've only ever heard it associated with ebay. You hear the term "Absolute" auctions a lot at B&M houses. An absolute auction means the item has no reserve, and will sell at any price, even a penny. States have different rules. In some states, the seller can bid and buy back his item. In my state, the auctioneer and his employees can bid on items, so nothing good will EVER sell for a penny.

There are many-many styles of auctions. The style that ebay uses, being the highest bid at the end of a time frame was not invented by them. It's just as old, and as valid as the typical auction you think of with buyers holding up cards and screaming out prices. I go to one auction house that NEVER uses a reserve, they start the bidding at the minimum the seller agrees to let something go for. If it gets no bids, it goes back to the seller. Another place almost next door uses reserves. They don't tell you there is a reserve. If bidding does no exceed the reserve, the auctioneer announces the reserve, and asks for bids. If no one exceeds the reserve, it goes back to the seller.

Bottom line, there are a multitude of auction formats, all of which are valid. I'm not sure if the term "True" auction is a valid descriptor, or just slang from ebay users.

Reserve prices are only good if they are low.