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<p>[QUOTE="Curtisimo, post: 8346360, member: 83845"]I think it is a product of two things:</p><ol> <li>It makes sense for an auction house to lowball an estimate in a strong market. As mentioned above it encourages bidding. Also as I understand it auction houses will sometimes front a certain amount of the value of a coin to the consigner ahead of the sale and this amount is based on the estimate. Lowball estimates work on average in a strong market where there are plenty of bidders but it would NOT work quite so well in a down market. <br /> </li> <li>There has been an incredible amount of irrational exuberance in a staggering number of markets over the last 2+ years: stocks, used cars, real estate, crypto... and collectibles. It’s amazing how many times I have seen a coin I was looking at in an auction turn up for sale again and again at other venues. A certain segment of coin auction participants seem to have settled into the mindset that coin prices can only go up. These bidders will continue to “pay whatever” until they get bit by reality if/when the market turns. </li> </ol><p>Anyway, that is my best guess as to how you can have both lowball estimates and eye watering hammers at the same time. Here is a coin to keep my post legal. </p><p>[ATTACH=full]1480428[/ATTACH][/QUOTE]</p><p><br /></p>
[QUOTE="Curtisimo, post: 8346360, member: 83845"]I think it is a product of two things: [LIST=1] [*]It makes sense for an auction house to lowball an estimate in a strong market. As mentioned above it encourages bidding. Also as I understand it auction houses will sometimes front a certain amount of the value of a coin to the consigner ahead of the sale and this amount is based on the estimate. Lowball estimates work on average in a strong market where there are plenty of bidders but it would NOT work quite so well in a down market. [*]There has been an incredible amount of irrational exuberance in a staggering number of markets over the last 2+ years: stocks, used cars, real estate, crypto... and collectibles. It’s amazing how many times I have seen a coin I was looking at in an auction turn up for sale again and again at other venues. A certain segment of coin auction participants seem to have settled into the mindset that coin prices can only go up. These bidders will continue to “pay whatever” until they get bit by reality if/when the market turns. [/LIST] Anyway, that is my best guess as to how you can have both lowball estimates and eye watering hammers at the same time. Here is a coin to keep my post legal. [ATTACH=full]1480428[/ATTACH][/QUOTE]
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