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<p>[QUOTE=&quot;GDJMSP, post: 1173377, member: 112&quot;]As I said, it&#039;s not just Teletrade. It&#039;s every auction house there is - ALL of them. And the difference is pretty simple. </p><p><br /></p><p>You don&#039;t know that there are shill bidders and shills work by using deception. They only pretend that they are trying to buy the coin and merely drive up the price after the auction has started for others who are genuinely interested.</p><p>&nbsp;</p><p>Reserve prices work differently and they are set by the owners before the auction ever starts.</p><p><br /></p><p>Say you&#039;re the owner of a coin and you place it in an auction. But you have a minimum price that you are willing to accept before you will agree to sell the coin. You decide on what that price is before the auction ever starts - that&#039;s your Reserve Price.</p><p><br /></p><p>But because of human nature if people (other bidders) know what the Reserve Price is before that auction starts and they think it is too high, nobody will bid on the coin. So reserve Prices are kept secret and that allows the bidders to enter into competition for the coin with each one bidding and then outbidding the others. That is the nature of auctions.</p><p><br /></p><p>Now if during the auction the price rises but it is yet still below the Reserve then the auctioneer, or the software as the case may be, increases the bid by the next bid increment. But you as a bidder don&#039;t know if it is really another bidder or just the Reserve kicking in. And it really doesn&#039;t make any difference because if it is another bidder then you either have to increase your bid or give up and move on. So either way it&#039;s the same thing.</p><p><br /></p><p>Once the Reserve is met and or exceeded then it is up to the bidders to decide what the top price will be - who want&#039;s the coin the most. Eventually everybody gives up because they are not willing to pay that much.</p><p><br /></p><p>It&#039;s no different than if you as an owner walk into a coin shop or a coin show and try to sell your coins to the dealer there. You have in your mind a minimum price that you are willing to accept - that&#039;s your Reserve. And if the dealers offers less than that then you walk away. If he offers that much or more, then you accept his offer and sell him the coin. It&#039;s no different at an auction for in both cases you as the owner have a minimum price in mind that you will accept.</p><p><br /></p><p>Now you can say that that is no different than shill bidding if you want. But it isn&#039;t.[/QUOTE]</p><p><br /></p>

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