Auction Mentality - Help Me Out Here

[MentalUnrest]

Went to a coin auction today and was left scratching my head as to what the coins were selling for. I am not an expert, but would consider myself very well informed of the prices of different grades of coins. The things I do not know, I have my computer to look up while at the auction. The prices today were staggering in how much people were paying. Peace and Morgans were going for $70-90 for non key dates in decent shape. Most were not graded, but even in MS shape, the ones I looked up on eBay were going for around $40-$50. The ones that were slabbed sold for DOUBLE what they were worth. One key date Morgan that was selling at $120-$145 on eBay at a MS 63 went for $340! I understand not all people want to deal with the internet but there are a few coin shops in the area where they could have gone and saved themselves quite a bit of money.

They had some proof Franklins that sold for $40-$55, and silver proof Ikes went for $35. I hardly ever buy coins at auction as from what I have seen, these prices are normal in my area. Heck, even a bag of 500 wheats (all 40s and 50s from what I could see) went for $47.50. On eBay, these 500 lots of wheats barely sell at all if people have them priced over $17.00 - Unless they are teens, 20s and 30s.

Anyone else attend coin auctions and if so, do the coins sell for more, less or about what they are worth?

 

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[TheRockDoc]

It blows my mind too... I have only been to a couple estate sales around here, but witnessed something very similiar with coins. I have heard many times this same thing about what you are talking about. In fact I watch it all day on the classified adds for my area. It is unreal what people are willing to even ask for coins, Sometimes I have the urge to call people or post an add to let them know what the 6 local coin shops are selling them for... but I never have. What auction were you at? If I were you, I would find out what the fee is, and if it is not to unreasonable, you could pick up coins from the shop, or sell your own if you have them, and sell them for a very decent profit, and then buy more silver coin...

 

[hombre_de_plata_flaco]

Whoa... Those are some pretty whacked out prices for those particular coins.

I don't know what to say about those prices. Either the bidders are not internet savvy (there are people out there to this day that still have no clue how to operate the interwebz believe it or not) or they just got caught up in a bidding war. Emotions can ride high at auctions and people can just get caught up in the moment, but those are some ridiculous prices.

 

[ivan salis]

those prices are easy to explain --as P T Barnum said -- " there a sucker born every minute" -- clearly these are folks that have NO CLUE as to the proper prices to pay and get caught up in the hoopla of bidding.

 

[hombre_de_plata_flaco]

those prices are easy to explain --as P T Barnum said -- " there a sucker born every minute" -- clearly these are folks that have NO CLUE as to the proper prices to pay and get caught up in the hoopla of bidding.

If I ever decided to sell some of my stash I would ask MU to give me the location of this auction house. The price of my collection would effectively double at this place.

 

[fistfulladirt]

Not everyone at those auctions bidding those prices are clueless. I've seen private collectors, dealers, and those that hover over the merchandise, pre bid-war. Several have their grey sheets with them, or coin price mags, and still coins get bid up to crazy levels.

 

[clovis97]

I attend tons of auctions.

I am often stunned to see what some people will pay for things. Totally unbelievable at times.

 

[jrf30]

Auctions for houses are starting to do the same thing.

Again.

 

[Diver_Down]

I attend auctions frequently, about 3-5 a week. Understanding the clientele can work to your advantage. I flip coins frequently between a number of auction houses. There is one on the Space Coast that the consists of militant gun nuts. The guns that are sold at this place are ridiculous and dare I say borderline illegal. It makes me uneasy. However, they don't know squat about coins. A dealer consigns with the auction house as he gets zero foot traffic in his store. I'll buy mint state morgans and peace dollars for $30/each. I can then consign the same coins at an auction house on the First Coast and can easily double my money. Periodically, I consign some of my dumps for crazy money. I buy old coin albums empty and reload them with my dumps. People see the age of the folders and automatically associate old == money.

 

[yonico]

i see coins selling way below greysheet prices on ebay, but usually it's because they are slabbed by a TPG other the PCGS/NGC/ANACS.
If you're a serious coin collecor, you know that only these 3 TPGs are serious, and won't buy coins in any other slab.

i recently bought a 1925 S$1 NGC MS66 and paid a little over $400 for it (greysheet bid is $585 so it was a good deal), i saw one that was graded MS67 by ICG selling for $350. but never even thought of buying it. they regularly overgrade coins, and the spread between MS64-MS65 is 500%. so you have a lot to lose.

so that could be the case.

also, if it's an expensive show, each dealer has to make $70-$120 profit just to pay for his showcase space at the show, before he even starts making money.

 

[Gilmore Happy]

those prices are easy to explain --as P T Barnum said -- " there a sucker born every minute" -- clearly these are folks that have NO CLUE as to the proper prices to pay and get caught up in the hoopla of bidding.

I go to a general auction 2 times week with misc items.

I go to an annual auction that is 4 days long, very specialized....I would consider myself near expert. I am amazed every year when we get to this certain cateogory how much people over pay. I left the room last year during bidding (I friggin know what these things are worth, and Im like what are you all smokin')....like Ivan quoted, suckers will always be there.

I'd like to add to that, it only takes 2 suckers to bid up a price at auction....AND if you dont know who the sucker is at auction, it's you....

 

[timbobwey]

lot of people who go to auctions pay way too high, so I never go to them anymore. I think the reason they pay soooo much more than they should is because they aren't coin hunters, they are just collectors. People bring a lot of money to auctions, and they think they always get a deal no matter what, but that's not even the case. People that spend that much on the coins at these auctions probably don't even know the value of what they are buying. That's the beauty of all us coin roll hunters. We know what we are after, and we know how much is too much to pay. In my case, if I'm not geating a great deal on silver coins, then I'm not buying. Because I know I can do some roll hunting and find it in the wild. So let those people pay too much at the auctions Because chances are, they're not your roll hunting competition.

 

[azlegends]

I too am a regular auction attendee, and yes many of these idiots have no idea what their looking at, they just bid on what the rest of the crowd bids on. Slowplaying and tuning down interest in items has really helped in the past. Its alot of mind games at auctions, especially once you become a regular and have to deal with the other regulars.

 

[Diver_Down]

I too am a regular auction attendee, and yes many of these idiots have no idea what their looking at, they just bid on what the rest of the crowd bids on. Slowplaying and tuning down interest in items has really helped in the past. Its alot of mind games at auctions, especially once you become a regular and have to deal with the other regulars.

One of my best deals was a 1741 St. Geran salvaged pillar dollar. The dollar by itself in unremarkable, and I was able to down play the item at preview to others that were interested stating that the bullion content was less due to the nature of being submersed for 230 years.

When it comes to shipwreck salvaged coins, provenance is everything. St. Geran pillar dollars are very rare due to the fact that: 1) It was only discovered in 1966 by a rag-tag group called Mauritius Underwater group. 2) It is not a Spanish galleon, but rather a Dutch East India merchant vessel. 3) The St. Geran was on a return voyage with cargo purchased so the quantity of dollars aboard was significantly less. 4) Salvage only occurred for 2 years before the government stepped in and claimed ownership. Consequently, there is very few on the private market and very seldom seen.

Everyone, quit bidding after the bullion value was reached. I snagged it and scrapped the gold bezel that it was mounted in netting a slight profit for a rare 1741 pillar dollar.

 

[azlegends]

Excellent story DD, that's the exact type of mind games im talking about. That's an excellent find right there. Im actually going to be picking up a few lots I won on an auction later today. The other tactic I like to use against alot of regulars is to bid as late as possible in order to make it seem less interesting to you. Most of the buyers who actually do this for income, not because the saw it on tv, learn what the competitions expertise is. This was you can read the others buyers bidding, and essentially have your own expert available. This can be risky, but if you are good at reading people it can be fairly reliable.

 

[Goldmanford]

We went to an auction Saturday night and they had a lot of Walking and Benjamin halves that went for $18 each and the Peace dollars went for $31 each. I have key date coins go pretty high but the common ones are just a little above spot.

Now I have seen a person buy several clad Kennedy halves well above the 50 cent value plu paying slaes tax and the buyers premium. That made no sense to me.