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<p>[QUOTE=&quot;Jaelus, post: 2743632, member: 46237&quot;]I agree spending over 2k on a $200 coin and not wanting to honor it is not okay, but I disagree with what you&#039;re saying otherwise. If your max is $500 in your example, bidding $600 may be perfectly fine. I&#039;m talking about a long term bidding strategy, not just looking at a single coin.</p><p><br /></p><p>That is the point of my earlier insurance analogy. If you look at only the one coin out of 100 that gets lost in the mail where you lose $250 out of pocket, not buying insurance for that one coin sure does look like a bad deal (and it is a bad deal when you only look at that one shipment). But when you look at all 100 shipments where you would have spent $1000 on insurance, you can clearly see that it actually saved you money in the long run. And that&#039;s what I&#039;m talking about here.</p><p><br /></p><p>To be clear, for this bidding strategy to work you have to be disciplined in your coin selection (premium quality rare coins), and you have to know the market well. I&#039;m sure the kind of person to keep bidding $2k on $200 details coins, common coins, or examples with poor eye appeal would quickly find they have overpaid for everything.</p><p><br /></p><p>Let&#039;s see what actually happens with this bidding strategy. Let&#039;s say you bid on 5 coins where your max is $500 each and you bid your real maximum of $500 on each coin:</p><ul> <li>Coin 1 hammers at $250</li> <li>Coin 2 hammers at $510</li> <li>Coin 3 hammers at $525</li> <li>Coin 4 hammers at $425</li> <li>Coin 5 hammers at $650</li> </ul><p>So you won two coins for a total of $675 and you lost out on three coins. Now you still need those three coins for your set, so now you spend a lot of time (time is money) trying to find them down the road, and if the three you lost out on here were rare premium quality examples, so you may be hard pressed to find them again. You may settle for lesser examples and end up wasting quite a bit of money on upgrades over time. Keep in mind, you only lost one of the coins by $10, and the other by $25. You&#039;re going to spend way more than $35 worth of time tracking them down again, so it really doesn&#039;t make sense.</p><p><br /></p><p>But let&#039;s say you bid $750 on each coin instead of $500 (a +50% buffer):</p><p><br /></p><p>You won the same two coins as you did before, but you also won two of the coins at just over your true maximum, saving you time and money finding those examples in the future. You overpaid for the last coin, sure, but your &quot;true&quot; maximum for the 5 coins was $2500, and you ended up paying $2360. <i>You&#039;re still under your true maximum bid overall for the five coins.</i></p><p><br /></p><p>I can assure you this strategy does work. You end up ensuring auction wins on way more bargains than you end up with coins you have overpaid for, and it&#039;s balanced out by eliminating the opportunity cost for coins you would otherwise lose by a nominal amount.[/QUOTE]</p><p><br /></p>

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