Quote:
Originally Posted by rhettyeakley
I have never understood why people today feel only an auction can determine what the true value of a card or commodity is.
The short answer is NO, at auction there needs to be TWO people that feel the card is worth a certain amount for the item to get to that level. If only one person bids to the current level and there is not a second party involved they may in fact be getting a major deal on the card considering that same person may have been willing to spend a significant amount more to aquire the same item in a retail or direct sale setting.
Retail sales haven't suddenly become meaningless. In reality all it takes is ONE PERSON to determine a market value as long as money is exchanging hands. Sellers have sold countless things over the years for a fair amount over "auction value" to someone that really wants an item that is unavailable elsewhere, especially in a thinly traded set. These sales are every bit as legitimate as any auction price.
ON a different topic: I always find it funny when people who are almost exclusively buyers just don't understand why sellers don't just start things low and let it fly, as if the seller must have gotten the item for free and there is no risk involved. It sure is easy to risk or spend other peoples money, isn't it!
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Rhett:
With all due respect, I actually agree with your well-articulated point, but I believe you've actually supported my argument, not refuted it. My general point is that an auction (that is well publicized and therefore attracts rational prospective buyers) is A good barometer of market value but certainly not THE only way to determine value. To use my quote as a springboard to your point represents a bit of non-sequitur.
Again, I agree with you that a market price can be determined by two parties alone, a rational seller and a rational buyer (i.e. someone not selling or buying under duress or with emotion as in Steve's example.) It happens in real estate all the time. If one buyer buys my house (with no other bids) for $500K, then that is the market value of that house in the immediate term (obviously economic conditions can change that over time.) And so, if we both agree that at least one buyer and one seller are necessary and sufficient to agree to a price which becomes market value, then the presence of additional buyers (i.e. in an auction) would naturally be included in that premise.
Certainly not trying to create a debate on a beautiful day; just seeking to clarify my point as I don't think we disagree on much here. Full disclosure: I am largely a collector, but I consigned some cards to PWCC a while back and got CRUSHED. My only conclusion, however, was that the market price for my cards was lower than when I bought them. Just bad timing on my part.