Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Ancient Coins
>
AMCC Auction - Pre- vs. Proxy Bids
>
Reply to Thread
Message:
<p>[QUOTE="kirispupis, post: 7779848, member: 118780"]I don't believe this is true. Say a coin has a starting bid of 50 Euros. User A comes and places a max bid of 65 Euros. The auction will list the current bid at 50 Euros.</p><p><br /></p><p>Now I come in. I see the current bid of 50 Euros, but I have no idea it has a max bid of 65 Euros. However, I really want this coin, so I place a max bid of 100 Euros. Let's say the bidding increment is 5, so now the current bid will be 70 Euros. Other bidders, however, won't know that my max is 100. If someone bids 75, the auction will show the current bid as 75 Euros, and the coin will still be mine.</p><p><br /></p><p>By my understanding, proxy bids have one big advantage and one big disadvantage.</p><p><br /></p><p>The primary advantage is you can bid on an item without making your interest known. Too often before an auction, two bidders will get into a "pre-auction war." They'll bid up a coin way before the auction date. Now you have two bidders extremely anxious for a coin, because one's personal honor is at stake, and things can get really ugly in those last seconds. Even worse, this bidding can lure what I call "money sniffers." These are people who know very little about coins, but automatically assume that something that's bid up <i>must </i>be interesting, so they bid it up more. Proxy bids, of course, reduce this.</p><p><br /></p><p>The primary disadvantage is <i>positioning</i>. This is the old "king of the mountain" analogy, meaning it takes more energy to push someone off the mountain than to prevent someone from pushing you off. A useful positioning point I've noticed is the 500 Euro/Dollar/Pound mark. For a number of auctions, the bidding increment is 20 up to this point, and 50 thereafter. So, if I place a max bid of 500, that means someone needs to increase his/her offer by 10% to beat me. If the coin happens to be worth about 500, that's a tough pill to swallow. Pre-bids have positioning preference over proxy bids.[/QUOTE]</p><p><br /></p>
[QUOTE="kirispupis, post: 7779848, member: 118780"]I don't believe this is true. Say a coin has a starting bid of 50 Euros. User A comes and places a max bid of 65 Euros. The auction will list the current bid at 50 Euros. Now I come in. I see the current bid of 50 Euros, but I have no idea it has a max bid of 65 Euros. However, I really want this coin, so I place a max bid of 100 Euros. Let's say the bidding increment is 5, so now the current bid will be 70 Euros. Other bidders, however, won't know that my max is 100. If someone bids 75, the auction will show the current bid as 75 Euros, and the coin will still be mine. By my understanding, proxy bids have one big advantage and one big disadvantage. The primary advantage is you can bid on an item without making your interest known. Too often before an auction, two bidders will get into a "pre-auction war." They'll bid up a coin way before the auction date. Now you have two bidders extremely anxious for a coin, because one's personal honor is at stake, and things can get really ugly in those last seconds. Even worse, this bidding can lure what I call "money sniffers." These are people who know very little about coins, but automatically assume that something that's bid up [I]must [/I]be interesting, so they bid it up more. Proxy bids, of course, reduce this. The primary disadvantage is [I]positioning[/I]. This is the old "king of the mountain" analogy, meaning it takes more energy to push someone off the mountain than to prevent someone from pushing you off. A useful positioning point I've noticed is the 500 Euro/Dollar/Pound mark. For a number of auctions, the bidding increment is 20 up to this point, and 50 thereafter. So, if I place a max bid of 500, that means someone needs to increase his/her offer by 10% to beat me. If the coin happens to be worth about 500, that's a tough pill to swallow. Pre-bids have positioning preference over proxy bids.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Ancient Coins
>
AMCC Auction - Pre- vs. Proxy Bids
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...