Auction Representation

[CTcollector]

Auction representation is something I strongly suggest for those of you who can not make it to a show. If you do not have the opportunity to view the coins yourself, pay the extra 2-5% and have a professional you trust do it for you.

 

The reason I say this is that the quality of coins coming to auction has severly deteriorated the last few years. As more and more over graded and problem coins are rejected sight seen on the bourse floor, I believe they are getting dumped in the auction in the hope of hooking a fish. Additionally, there are countless examples of coins in this ANA auction that were in lower holders less than 6 months ago !

 

On a personal note, I selected several examples from the multitude of auction ANA catalogues that I thought had a shot at being quality pieces. I had a professional I deal with regularly review these coins in person before considering a bid. The advice I was given was a strong pass on all my lots as the coins were either AT or stripped and retoned. Additionally, I have a collector friend who also had someone review a rare date gold coin that he needed for his collection. The advice on that coin was to pass also as the coins was "waxed" to conceal some surface marks.

 

If you bid solely on auction catalogue descriptions and crappy pictures, you do this at great risk. A few extra $ to have a professional to review coins for you and render an honest independent opinion, is well worth it in my opinion.

 

PS - the commission dealers charge you is usually only based on winning lots. You pay nothing on a pass. Also, if you do enough business with someone, they may do this as a courtesy.

[IGWT]

Great advice, CT. I've not yet been bitten in the few sight-unseen transactions that I've entered into by bidding in major auctions over the internet; but, I'm getting more and more nervous. Is the 2-5% of a successful bid the standard rate for representation (and does the rate slide up and down with the value of the coin)? I almost asked a dealer to represent me in the Superior Santa Clara Auction, and I was going to propose a flat fee for reviewing the coins and (if the coins looked good) bidding on the floor.

 

I was thinking of this kind of arrangement for three reasons: First, it just seems fairer to compensate the representative for his or her work regardless of whether or not I end up purchasing. Second, it recognizes the great value of having a representative warn you off a coin. Third, it avoids the inevitable conflict of interest that exists when compensation is contingent on a purchase.

[CTcollector]

Fees for auction representation will vary by professional and also will be somewhat contingent on the amount of business, if any, you do with that individual. The current arrangement I have is 2% on larger value successful bids and 4% on smaller value successful bids, and of course no charge for the passes. The arrangement is with someone I do a good amount of business with and who I know has a good eye and takes a conservative approach to coin grading, as do I. In the past, I have had another dealer offer it free of charge as a courtesy for the business I did with them. I have not done alot of business with them this past year, so I do not expect the courtesy.

 

I have seen other dealers I do not do business with charge 5% for auction representation on successful bids. I would suggest never paying more than 5%.

 

Also, stick with someone you know and trust and more importantly, someone who knows you and what you like and dis-like in your coins. If you don't do alot of business with the larger dealers stick to someone with a good reputation (even if it costs you an extra percentage point). I have heard of some horror stories where a slime ball dealer has a crappy coin in auction and newbie comes along looking for auction rep, slime ball dealer steers newbie towards the crappy coin and runs up the bid to boot. So chosing the right rep is important.

[IGWT]

some horror stories where a slime ball dealer has a crappy coin in auction and newbie comes along looking for auction rep, slime ball dealer steers newbie towards the crappy coin and runs up the bid to boot