Guilty - A Newb Bidding Lesson

I don't do the bidding thing very well. If I see a coin I like, I place what I am willing to pay and move on with my life...... Well, I saw one on Heritage last week that I REALLY wanted and I plugged in my max bid which I surmise is maybe 30% higher than that coin would be valued at on a good day...... I am not a guy that has the time or the patience to sit and manipulate bids, but this is one I really, really want.... We aren't talking huge money here, and the bid doesn't take place for two more weeks. Have I put myself in a bad position by placing a very heavy max bid?

 

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As Mr. Popeil once said Randy, 'set it, and forget it'. That's the way I'd of done it.

 

If you're willing to pay the max bid (factoring in buyers fee, etc.) that you put in, what's the harm? I've overbid, and won, stuff before but I was willing to because I wanted the piece.

 

Some will say it’s best to wait and put your max at the end while others will just put in a bid and let it ride. I’ve won and lost coins using both strategies. You do decrease the chances of someone running you up by waiting but winning the coin is another matter. That depends on how much the most motivated person is willing to pay.

 

I don't think there is enough credible evidence to definitively support either method, i.e. going big early or late. I tend to go late on the theory that it's generally better to hide your cards.

 

Well…. It isn’t a big deal. It should be a $500.00 coin But if it reaches my max bid I will still be happy.

 

@Randy Abercrombie I'd recommend editing your post to not reveal what the coin is; most people here won't be looking for it, but it's still best to avoid adding unnecessary competition.

 

Good call

 

...dang, I was going to waylay him...

 

You shush! LOL

 

If you like it place your max bid that you are comfortable with and if you win you get your coin. Good luck.
Phil

 

All depends on the auction and how it’s set up. I do a monthly auction and I can set a maximum bid. I get a notification if it goes higher. But my lower bid is there until it reaches my highest bid. Most times I get the coin for less than my highest bid. Best to set your bid and check on it a few times.

 

I don't know. I think the odds of winning the coin increase if you wait to place your bid. I believe it increases your chances of getting it below your max if you do that. You can always bid up to your max if you have to, but you can't bid down.

 

For most of us, and for most of the coins we would like to obtain, it isn't a good financial strategy to bid a price that is significantly greater than we think the coin is worth. I understand that sometimes we want what we want pretty much regardless of the price. But for most of the people and most of the time, we don't want to pay a lot more than what most other people would pay.

For example, if you think the FMV of the coin is $1000, but you put in a bid for $3000, the odds are you're going to win a significant fraction of those auctions. But you definitely run the risk of some of those wins having an underbidder who is just as motivated as you thus driving your cost way up. And if there's the slightest possibility of a shill, this strategy can have very uncomfortable consequences.

Like I said, if it's something you've just got to have, then bid high whether early or late as you think best. But I prefer to see how auctions are going before I make a commitment. And frankly, there are very few coins that are affordable to me that cannot be obtained elsewhere if this specimen gets away.

That said, I let a nice coin I was going to bid on get away last night because my wife wanted me to watch a show with her so I missed watching the last few minutes of the auction and putting a bid in. Possibly might have picked that very nice coin up for a decent but fair price. But there'll be another one that comes along.

 

Been there too! A recent example was a nice coin ending in the afternoon. I get a call from a coworker and that turned into a long conversation. By the time we are done, I remember the auction and it's too late. With some auction venues, like Stacks/Heritage/Legend, you also don't know the exact time the coin will come up. If prior lots are running long (or going quick), it could be later (earlier) than anticipated. Those are circumstances where I've placed bids early and checked back in when the auction was over. With eBay, there is more certainty as you know the exact time it will end and can even use a snipe program (although be careful there since lately they have those messages to prove your identity that can pop up in the wrong moment and not let you bid).

 

One more scenario where I've seen early bidding be successful is bullion items. Something like a generic ounce of gold will be tied to the spot price. If you bid the right increment, you might win as the next highest bid wouldn't be worthwhile (some auction houses have a $50 jump between increments at that price level, so once the coin reaches a certain dollar amount, most won't bid another $50 as that tends to be too big of a premium over spot).

 

Like you, I usually set a bid and move on. If I win, they will let me know. But, if I really, really, really, want the coin (for whatever reason), then I'll track the auction and put in my highest bid 4 seconds before the hammer
Good luck on your bid.

 

And in the end. I won a long desired dream coin….. It went all the way to my max bid. And I am happy owning this slice of early American history.

 

For me, set it and forget it. Decide what your Max is and leave it at that. You either win or lose. The trouble with bidding late, especially on a coin you really want is your chances of overbidding becomes multiplied. Lets say the coin is worth $300. Your Max Bid is $280 considering all fees. Someone bids $290. Do you let it go? Or convince yourself "I'm already in for $280, what's another $10 and you increase your bid". So does the other bidder, now you've trapped yourself in the mindset that "oh, it's just a little more". This is a false belief. Your not "already in", your just overpaying. I've been there, done that and then had to have serious talk with myself about breaking my own rules. Sometimes I even listen to myself.
Good Luck.

 

So you're the one doing it at all the internet auctions!! LOL