I get so sick and tired of being told "when it comes time to sell your coins"...

[Tradedollarnut]

PS - I just got my quarterly distribution of $7,000. Woohoo. And included was a letter from JA reminding the shareholders that the primary mission of CAC is to stop grade inflation and coin doctoring, not to generate a profit.

[TomB]

how is scotsman an auction if they state, they will only accept a bid, 80% of the min. estimate ?

 

Huh? Where does it state that?

 

top right corner, in the midwest summer sale catalog.. says "bids submitted must be @ least 80% of the low estimate amount listed with each lot in order to be recognized and recorded."

This is simply in reference to the reserve on each lot. Scotsman has a double-secret formula that creates the estimate range based on several factors, including the reserve and current wholesale value. In other words, a bid that's less than 80% of the minimum has no chance of beating the reserve.

 

By the way, some have asked me if the "low estimate" IS the reserve, and then answer is "not necessarily".

How can the text in bold, above, be consistent with you later statement that you consigned a coin with a $1 reserve yet the estimate was $100?

[tonidanzawillpay]

how is scotsman an auction if they state, they will only accept a bid, 80% of the min. estimate ?

 

Huh? Where does it state that?

 

top right corner, in the midwest summer sale catalog.. says "bids submitted must be @ least 80% of the low estimate amount listed with each lot in order to be recognized and recorded."

This is simply in reference to the reserve on each lot. Scotsman has a double-secret formula that creates the estimate range based on several factors, including the reserve and current wholesale value. In other words, a bid that's less than 80% of the minimum has no chance of beating the reserve.

 

By the way, some have asked me if the "low estimate" IS the reserve, and then answer is "not necessarily".

So all of the lots (with estimates) are reserved?

Actually, every lot in the auction has an estimate and a reserve, though some (possibly many) of the reserves are very, very low - as low as $1. I believe their software will not allow entry of a coin without a reserve, because again, the formula for calculating the estimate range somehow uses that reserve amount in the calculation.

 

I put three lots in the sale, and one of the lots I was willing to sell at any price. It had a reserve of $1, but the published estimated range ended up being something like $100 - $140 (instead of $1 - $140). So in this case, some wholesale value (which I presume to be greysheet or an approximation thereof) played the major role in calculating the low end of the estimate.

 

(Note that I am not privy to the actual calculation. All my statements to this point have been my understanding from past discussions with folks at the auction house.)

 

so its not really an auction.

[MarkFeld]

...so its not really an auction.

Yes, it's really an auction, with all of the coins reserved at $1 or more.

[James_OldeTowne]

Mark has stated it exactly.

 

 

top right corner, in the midwest summer sale catalog.. says "bids submitted must be @ least 80% of the low estimate amount listed with each lot in order to be recognized and recorded."

This is simply in reference to the reserve on each lot. Scotsman has a double-secret formula that creates the estimate range based on several factors, including the reserve and current wholesale value. In other words, a bid that's less than 80% of the minimum has no chance of beating the reserve.

 

By the way, some have asked me if the "low estimate" IS the reserve, and then answer is "not necessarily".

How can the text in bold, above, be consistent with you later statement that you consigned a coin with a $1 reserve yet the estimate was $100?

Tom, good question - and it isn't consistent! I had not thought out my answer very well, and that compounds with not actually knowing exactly how the double-secret formula works.

 

In actuality, my lot could have sold for $1, since that was my reserve. I guess a better way of phrasing it is that I do not remember ever seeing a lot actually exchange hands for 80% below the minimum estimate, though you are correct - it could happen!

 

I don't know if this is what Scotsman actually does, but if I were running an auction company, and people consigned coins to me with no reserve, then I would put the minimum estimate at some number less than wholesale, and automatically place a bid myself of 80% of that minimum. This would protect my consignors from a catastrophic scenario.

 

Adding to the inconsistency, I believe the online system will in fact accept bids as low as 50% of the minimum estimate.

[TomB]

Sounds good to me. (thumbs u

[tonidanzawillpay]

...so its not really an auction.

Yes, it's really an auction, with all of the coins reserved at $1 or more.

and selling for no less than 80% of the estimate. this is a stated policy.

[tonidanzawillpay]

Mark has stated it exactly.

 

 

top right corner, in the midwest summer sale catalog.. says "bids submitted must be @ least 80% of the low estimate amount listed with each lot in order to be recognized and recorded."

This is simply in reference to the reserve on each lot. Scotsman has a double-secret formula that creates the estimate range based on several factors, including the reserve and current wholesale value. In other words, a bid that's less than 80% of the minimum has no chance of beating the reserve.

 

By the way, some have asked me if the "low estimate" IS the reserve, and then answer is "not necessarily".

How can the text in bold, above, be consistent with you later statement that you consigned a coin with a $1 reserve yet the estimate was $100?

Tom, good question - and it isn't consistent! I had not thought out my answer very well, and that compounds with not actually knowing exactly how the double-secret formula works.

 

In actuality, my lot could have sold for $1, since that was my reserve. I guess a better way of phrasing it is that I do not remember ever seeing a lot actually exchange hands for 80% below the minimum estimate, though you are correct - it could happen!

I don't know if this is what Scotsman actually does, but if I were running an auction company, and people consigned coins to me with no reserve, then I would put the minimum estimate at some number less than wholesale, and automatically place a bid myself of 80% of that minimum. This would protect my consignors from a catastrophic scenario.

 

Adding to the inconsistency, I believe the online system will in fact accept bids as low as 50% of the minimum estimate.

 

it could if they accepted bids less then the 80% opening. that is why u never saw a coin sell for less. also, if i bid 50% of the low estimate, online, ill win any lots that no one wants, for half price?

[James_OldeTowne]

it could if they accepted bids less then the 80% opening. that is why u never saw a coin sell for less. also, if i bid 50% of the low estimate, online, ill win any lots that no one wants, for half price?

My answer would be: Yes.

 

(But I think you will have aggressive competition!)