Posted By:
Bruce Dorskind
As collectors, and ultimately as investors (some day everyone
or their family will sell or donate their collection), one of
the most interesting and important questions is:
To what extent does the auctioneer impact the price of an item?
Sotheby's and Christies, for example, dominate certain markets-
i.e. impressionist paintings (90% combined share) because they
"own the customer base" and have a world class client base
that no competitor can offer. They also have made representations
which protect the buyer and have financing systems in place.
Whilst there are only a few items that would bring seven figures
in today's market, there are at least fifty items (not just cards) which
would bring $100,000+ and 500 or more that would crack $10,000.
The question is to what extent will the auction house (include E Bay) impact
the price of the same item?
Let's limit our discussion to items that realize $500 or more
and focus on pre- World War II baseball cards. Let's also
assume that for 20th century cards- they are all graded
by SGC or PSA
Does one realize a higher price through a 15%/20% (seller/buyer) than a
10%/10% auction house?
Or is it the "timing of the auction" that makes a difference?
We have looked at 15 major auctioneers and E Bay and concluded
that the price for cards is more impacted by "timing" than any other
factor. The exception being those houses which "under promote"
or have SCD auctions only (no E BAY) generally realize lower
prices for the same item. Also, the first time an item appears
within a one year period it usually reaches its peak value.
On the other hand the prices for rare memoribillia (we did not look at autographs
and/or uniforms) is definitely impacted by the auction house and its reputation.
We'd welcome your comments.
All the best
Bruce Dorskind
America's Toughest Want List