WARNING: Beware of auctioning loaded coins with Stack's Bowers

[loglow]

Any commission taken by SB should only be on the premium, not the loaded value.

I agree that this would be the gold standard for fairness.

If 20% on just the premium wasn't enough to make this arrangement worth the auctioneer's time, couldn't they just increase the BP to like 25-50%? This seems so much more straightforward and it'd still be equitable for the seller: if either party profits, both parties do. Or is the 20% "sacred" to these firms for some reason?

Don't these auction houses usually charge a separate seller's commission on coins without much face value? They could make up the difference with that too. Not that it's anything different really, since the BP is really paid by the seller anyway since it depresses all bids by that amount.

[loglow]

Take you coin, ship it to the auction house, wait for money.

I agree with everything you said about auctions in general. Auctioneers are doing work and providing services, and that costs money. If you do it yourself, you deserve to make that much more of the profit.

What I don't agree with is the possibility of any situation where the auction house makes a sale and they profit but the seller loses money. As I mentioned earlier, since the auctioneer is legally an agent of the seller, this situation could cause legal problems in some places.

I'd be opposed to the opposite situation too, of course, but that's not a thing that ever happens.

[Cryptogreatdane]

I think that a lot of this has to do with a new growing category. Everyone rushed to sell their coins there. I wonder what the chart would look like if there were only 5-10 coins for auction. Many of these coins have low mintage and as category grows in popularity and coins get harder to find the premiums will continue to grow. Its guaranteed as time goes on these coins get more evenly dispersed. Right now were still at a point where 250 people hold 70% of the coins (just a guess). Physical bitcoin will grow and go through the roof, ITS SCIENCE

[loglow]

I think you’d be hard pressed to find someone who chose to sell via an auction house and doesn’t regret it.

I sold a coin with SB last year, and I have no regrets about that sale. I made a decent amount and they made a decent amount.

Even though their commission structure (for loaded coins) is unethical in a general sense, it was reasonable in that case.

And for unloaded / unfunded / low denomination coins, I think the structure is fine since it works like any other percent-based commission system.

[loglow]

I think that a lot of this has to do with a new growing category. Everyone rushed to sell their coins there. I wonder what the chart would look like if there were only 5-10 coins for auction. Many of these coins have low mintage and as category grows in popularity and coins get harder to find the premiums will continue to grow. Its guaranteed as time goes on these coins get more evenly dispersed. Right now were still at a point where 250 people hold 70% of the coins (just a guess). Physical bitcoin will grow and go through the roof, ITS SCIENCE

But... really look at the orange dotted line on the first chart. That's the premium value for each lot over time. Sure, it dips down somewhat after the first few were offered, but what strikes me the most is actually how stable it is. These are all coins with slightly different grades, too.

The average premiums of all 1BTC Cas error coins sold at auction:

• 2022: $16,300 — average grade 65.4 — 20 coins
• 2023: $19,000 — average grade 65.8 — 5 coins
• 2024: $16,000 — average grade 66.1 — 7 coins (so far)

• All: $16,656 — average grade 65.6 — 32 coins

Note: Includes a coin sold by Heritage on 5/8/24 which was missing from the graph.

Heritage is selling 5 more on 8/17/24. They're a nice grade rainbow of 63, 64, 65, 66, 67, and the first NGC graded ones I've seen (personally).

[DaveF]

Another thought. There also may be times you have to sell this way.
Estate sales, bankruptcy auctions, other things that require a public bid in with a known entity.

Just one of those things to consider that it's not always cut and dry. An estate and the executor of someones will can't give a coin to me and tell me to sell it here.
It would have to go through a place like the OP mentioned. Regulated, tracked, secure, etc.

-Dave

[vizique]

Premiums on coins have been declining for some time as BTC rises. They will never catch up, ever.

In $ terms however premiums on coins has kind of stagnated but then this is no surprise as they are all still relatively "young" and a copper/silver round only has so much value before the ceiling is reached...

Coins, as with much of the Bitcoin Art, need time to mature and in some cases will need quite some time for them to realise any worthwhile gain. I would say in some cases there needs to be decades pass before values climb again.

Only the ardent collectors are the ones prepared to pay anything worthwhile and even then they are all seeking bargains especially in a bull market.

Expectations are frequently crushed by the reality of market forces despite ever more collectors coming into the space.

EDIT: THis place will always be a better place to sell as there are no fees or charges. With that said, the risk of shipping and the Travle Rule (on certain items) comes into play and could cause issues where dealing with an auction house there would be fewer.

Viz