How Coin Auctions Handle Bidding and Bidding Absences
To aid those who are new to the hobby of coin collecting and also to help those who are new to the auctions in general, we have written this article to explain how Coin Auctions handle Bidding and also what happens to Bids that have been placed but the Bidder is not present.
Bidding in the Room
When attending an auction, you will first register for a paddle or a bidder number. This is your identification at the auction. When a lot is called, you bid by raising your paddle or making some other obvious signal. The auctioneer then continues to solicit bids from bidders until only one remains. At that point, he brings down his hammer signalling the close of bidding for that lot. The price at which the lot was sold, plus the buyer’s premium, is then due from the buyer.
Absentee Bids
Absentee Bids – Commission Bids. This is where you state the maximum amount you are prepared to pay for a lot and the auctioneer will then bid on your behalf up to that amount. com/) staff enter all absentee bids at the lowest level required to secure successful bids for clients. This means that you will not be charged more than is required to secure the lot. All absentee bids must be received by the auction house prior to sale day. Late absentee bids will not be accepted.
Telephone and Online Bidding
Some coin auction houses offer telephone bidding for higher priced coins. The collector can have a staff member of the auction house call him when the lot is about to be opened for bidding and the collector can then bid by telephone as the lot is opened for bidding. Many collectors also use online live bidding platforms that allow them to watch and bid on lots as they are opened for bidding. See also www.hoskerhaynes.com.
Reserve Prices
Reserve Prices: Most lots are sold with a reserve price agreed between the seller and the auctioneer. This is the lowest price below which a lot will not be sold. If no bids are made at auction for a lot with a reserve price then it will be withdrawn from sale. It would be unsuitable to ‘knock down’ a lot at a very low price as it would not be in the best interest of the seller.
If You Win or Miss
It is also wise to understand your obligations and the seller’s rights as a buyer at an auction. Essentially your bidding at the auction forms a binding contract between yourself and the seller as soon as the hammer falls. It is also wise to establish whether any unsold lots can be purchased after the auction has ended at the reserve price for that lot.
Knowing the mechanics of the auction in advance, allows you to focus on the coins rather than the process.
