Dnw Auction Estimates

[Mynki]

I'm just looking through the catalogues for next months auction. There are several entries where the estimates seem awfully low. I assume this is to try and generate some interest before the bidding begins?

[Nick]

I'm just looking through the catalogues for next months auction. There are several entries where the estimates seem awfully low. I assume this is to try and generate some interest before the bidding begins?

It's not unusual for DNW hammer prices to be a low multiple of the estimate.

[Rob]

So long as you maintain a bit of discipline, it doesn't matter what the estimate is. Decide how much you want to bid and go with it. Anyone complaining after the event that the estimate was misleading hasn't got a handle on the market, and arguably shouldn't be bidding at all.

[TomGoodheart]

Yes. Some auction houses seem to be more inclined to do this than others. But as Rob says, most times coins find their level.

You just need to decide if you're buying as a collector or seller. If as a collector, decide what price you think the coin's worth to you, adjust for buyer's premium (about 25% seems average now, with VAT and postage) and there's your bid. If you're selling you'll have to build in what profit margin you want.

Part Two of this illuminating series, where Tom gives tips to Grandmothers on how to suck eggs, will be published later....

[azda]

I find that the Australian auction houses and Heritage generally start at around book price for grade. Heritage being startospheric with their hammer prices. DNW is getting a bit popular with foreign buyers which in turn is pushing prices even higher. It may take a rethink Rob because i can see Spink being outdated fairly quickly next year and a lot of frustrated bidders.

Hopefully my comment was'nt to negative

[Peter]

With DNW online it makes great entertainment if you aren't bidding.

Their estimates were low to book or unrealistic to what the market is currently doing.

If you like something,it is a big world,and someone else probably will.

[VickySilver]

The venue to sell, perhaps not so much to buy...

There are some nice bits, but as was said, please do expect plenty of others to have the same idea.

I remember the day when often DNW bits went low!!! A bit worrisome to me when I paid 6x estimate (won the lot), but it was clear where prices were going. What I can't figure out is why London Coins do not follow suit.

[azda]

Exactly what i said a few days ago about Londons Vicky. They must be losing revenue by not using online bidding

[Peter]

Maybe the reputation isn't as high at London coins than it is at DNW.

Certainly there are quite a few more coins interesting to myself at London because my main interest is copper.

If they attracted more PCGS,NGC,ANACS coins to their sales maybe more

investment punters would bid big nrs for slabbed hammered...and think of the slabbing errors.

[Benny who]

The last few DNW auctions,I have sat waiting,finger poised to bid,AND then watched the bidding go straight through the top estimate and gallop into the distance.

The months staring longingly at what would have been my new pride and joy,dashed within the space of a few seconds,The heartbreak and agony of losing out to a deeper pocket,and a electronic ding,however knowing that someday you could be lucky.......you just can't beat the feeling.

[Rob]

London Coins do have some things from time to time which give you reason to push the boat out. GC commented to me a few years ago that he was taken aback by the price paid for my Cromwell shilling in the Andrew Wayne sale when he discovered I had bought it. That from someone who isn't afraid to keep going and frequently has a defective stop button. Conversely, I wish my button didn't work so well, as I'm still trying to find a gothic florin to replace a really juicy PCGS MS65 1856 that went through London Coins a few years ago. Silly sod that I am, stopped bidding.

[Coinery]

W&W are also guilty of the low estimate manoeuvre!

Incidentally, for those interested, their next auction has a whole pile of low to mid-grade c2 crowns going through!

[Rob]

W&W are also guilty of the low estimate manoeuvre!

Incidentally, for those interested, their next auction has a whole pile of low to mid-grade c2 crowns going through!

The low estimate I believe is not to pull in the punters, but rather to cover the auction house in the event of a passed lot. Most rooms will buy in the unsolds at say 80% of low estimate. It is in their interest to keep that number as low as possible. Low enough, then most will sell. They gain nothing from inflating the estimate.

[Coinery]

W&W are also guilty of the low estimate manoeuvre!

Incidentally, for those interested, their next auction has a whole pile of low to mid-grade c2 crowns going through!

The low estimate I believe is not to pull in the punters, but rather to cover the auction house in the event of a passed lot. Most rooms will buy in the unsolds at say 80% of low estimate. It is in their interest to keep that number as low as possible. Low enough, then most will sell. They gain nothing from inflating the estimate.

What's the etiquette around that then Rob? Is it a case of letting the staff know of your interest straight away, or is it handbags at auction close?

[Rob]

It varies from place to place. You may have noticed that many auction houses offer unsold lots for sale at a certain price. Conversely, when I tried to buy a couple of unsold lots at the Adams penny sale in 2003, Spink wouldn't entertain it. I thought the price at which they passed was cheap, and obvously so did they. The items reappeared in the Circular not too long afterwards. Policies change with time, so I guess it's always best to enquire, as they can only say no.

[RLC35]

Setting a low estimate strictley favors the auction house. First it lowers what the real estimate is, so it will stimuate bidding, because once bidding starts, it is more likely to continue, and secondly, the auction house usually only allows a "reserve price by the owner, of 60-70% of the low estimate. This, low estimate, and low reserve makes the coin easier to sell, and also keeps owners from placing a unrealistic reserve price on the coin.

[Coinery]

Cheers, Rob!