| by James Halperin
Let’s deal with one of the more controversial issues in the
coin business. Did you know that the person who offered the second
most for a coin sold at auction may well be the original owner?
Perhaps you were expecting some amazing revelation or juicy
gossip. Most people who participate in auctions understand
consignors can “protect” their property by bidding on it.
Okay, it’s often said that it takes two bidders to set a new
record price. Does it really matter if one of them happens to be
the person who consigned the coin to the auction?
At the beginning of this article I warned that we would be
dealing with a sensitive subject. It will not become any less so
as we continue. That said, I’m not suggesting my statements
reflect the policies of any auctioneer other than Heritage
Numismatic Auctions. How other companies choose to deal with
consignors participating as bidders and the issue of reserves is
not a subject I feel qualified to cover today.
At auction each bidder is allowed to establish his or her
opinion of value. I strongly urge bidders to do this in advance of
the auction session. Determine the maximum amount that you are
willing to pay for a lot and stick to it! Bidding by the seat of
your pants may be exciting, but I don’t recommend it. My company
didn’t invent auction fever, nor are we doing any serious
research to find a cure for this temporary, often costly, illness.
Even we are not that altruistic.
As the auction house, Heritage must take into account the best
interests of all concerned, ourselves included. Accepting
unrealistic reserve prices benefits no one, but it’s unfair to
expect the consignor to take unreasonable risks. For example, if
the well-documented market value of a coin were $10,000, we would
not accept a reserve from a consignor at that level. However, if
the consignor preferred not to sell the coin for less than $8,000,
we would agree. It has been said that there is no Santa Claus in
the coin business. I see no reason why an auction consignor with
choice coins to sell should be obliged to accept this role.
I would invite anyone who takes exception to allowing
consignors to place reasonable reserves on coins to look around
the room at any Heritage auction. Many of the bidders are dealers.
These dealers wouldn’t be there if we allowed unrealistic
reserves.
I wish I could say that everyone who participates in our
auctions is delighted with the results. Not long ago, a successful
bidder complained to me that, during a moment of weakness, he had
paid too much for a lot. A few weeks later, I received a letter
from a consignor who was unhappy because one of his lots sold for
less than he expected. Ironically, they were both talking about
the same coin.
To borrow a term often used in the real estate trade, the
purpose of an auction is to bring together motivated buyers and
sellers. If you, as the consignor, lack a sincere interest in
selling your property at current market levels, then Heritage
can’t be much help. Conversely, Cherry Pickers won’t add much
fruit to their baskets.
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