Auction Lesson

I know exactly what you are talking about my friend. I have found that you have to go to a lot of auctions in a lot of different locals to get the good deals. I was at an auction this past fall and witnessed 9, yes 9 circulated Ike's sell for $90 + 10% bp. An hours drive north of where that one was held they go for $1.25 - $1.50, some uncirculated, every other Friday night.

I learned my lesson a long time ago when it comes to coins in a local auction. They don't mix.

1.) Mostly idiots who know nothing about coins bid the crap out of them, and are only bidding because they're old. I've seen some unrealistic bids on low grade coins. Examples: 1887-O Morgans that barely meet VF grade sold for $80/piece. Unbelieveable what people with no numismatics knowledge will pay for old coins simply because they're old.

2.) Most small time auctioneers have no knowledge of coins to the extent of knowing where to start the bidding. Example: An 1893-CC Morgan, AU-MS(I'd say MS) and the auctioneer starts the bidding at $5. Book value is $2300 - $3600.

3.) I don't go to local auctions anymore.

I've noticed this trend for about a year now. Anything silver, and wheat cents, tend to go high at every auction I've been to. I see people all the time walking around with either a Red Book or a copy of Coin Prices. They still bid over these guides. I chalk this up to two reasons:

1- I haven't bought into the hype on silver and inflation. I just don't see it suddenly shooting up in value. But a lot of people have. I remember in 1999 everybody was touting the hoarding of "junk" silver as a hedge against the catastrophes awaiting us in 2000. Local coin shop I deal with is only paying 9x face for common date US silver coins, and are not even looking at foreign stuff. I see the US stuff going for 15x face and higher. Wheat cents will go from $7.50 to $9.00 a roll. I think the majority in my area don't get it.

2- The ebay and flea market craze. I see a lot of people who sell items on ebay. They readily admit it. One of my favorite past times is to go to an auction on a Saturday, then to the local flea market on Sunday. I see many items that somebody overbid on, then try to sell for even more outrageous money.

Both stem from the adage "a little knowledge is dangerous".

Where I live I have found that we have an extraordinary amount of auctions within an hour or so drive from home. As many as 20 on a good Saturday. I have been to most all of them and found that at several of them there is little to no interest in old coinage. I tend to get some good bargains at those. Some times half of grey sheet is all I pay. On the flip side you will get a couple of guys show up and the bidding will go through the roof. A prime example was a conversation I over heard at an annual New Years Day auction I love to go to that went like this over a 1975 proof set.

Man#1 How much are these worth?
Man#2 I don't know but I heard that they go for a $1000 on ebay.
Man#1 OH OK I wonder what it will sell for?

Proof set hits the ring and the auctioneer starts the bidding at $50, now $40, who will give $30? Hands go up and the bidding is off and running final sale price was $80 on an $11 fmv proof set. Yes the dime had a mint mark

Almost all actions everywhere have what some call ringers in the crowd. These are individuals hired by the auction house to bid on almost everything. If that ringer should win, that object just goes back up for auction at the next one. They do this to drive up the prices and especially when they see an interest in an object, they really jump in on those with their fony bids. At your next auction, look around for someone that bids on everything.

As a previous seller on ebay (before PayPal only) I noticed that if I hoped to get $100 for an item and I started it at $50 I hardly got any bids, maybe 3 or 4 and sometimes didn't even make the $100 I thought it would go for but if I started my items at $5.99 people would just jump in and start bidding like crazy and the price most of the time would shoot up well past $100 that I expected. Seems like start off low and draw more people in and make a better profit. It can cause heart problems till enough people get in. As for auctions I found out that people tend to overbid on them because they think if its sold at a country auction it must be valuable. Flea marts and house sales are probably the best. "Just my thoughts."

Tom R/edgman

Auction results can go both ways. I have seen many coins sell at auctions and agree that oftentimes people are overpaying for things. This is especially true when we are talking about silver dollars. At the same time I have been able to buy some real bargains when no one was paying attention or there was no interest in "junk". The object is to be smart enough to know the difference when bidding.

With regards to shill bidding that happens but NEVER assume it is taking place. I have been to many auctions where I was the very regular bidder (let's just say I help make the auction). Auctioneers pray for guys like me who go to auctions with a checkbook and are ready to buy. I will often pick off a lot of bargains in the process. Even if I don't win a bunch of things I drove the prices up so other bidders did not "steal" anything too cheap. Besides, most people figure out who the dealers are and they KNOW if they outbid a dealer then they must be getting a bargain because I am buying for resale and I have to have my margin.

In my opinion shill bidding does not matter anyway if I am looking to buy something. I know full well what is the most I am willing to pay for an item. I don't get emotional about anything I am buying (very important). If someone outbids me so what? Shill bidding is very easy to do now on ebay since they hide user id's but again I bid what I am willing to pay and if I don't win it I know there will be others.

In closing let me remind everyone to shop their local antique shops and coin shops. You can oftentimes buy the same or similar items MUCH cheaper from us than from an auction. This is especially true if you have family members feuding over the estate and bidding up the prices..... Sincerely, John Leckrone