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Old 06-14-2007, 07:22 AM
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Default Getting "deals" in Big Auctions??

Posted By: Marc S.

<<I always wondered (if I had lots of money of course) would I be able to make a living buying high end stuff from the big auction houses & then re-consigning those same items a few years later to the same or other auction houses ???????>>

Of course, if you have lots of money, perhaps you don't need to make a living...?

But if you consider a consignment fee of 5% and a buyers fee of 17.5%, you are out 22.5% off the bat. Then, if you look at costs of capital, you would essentially need to realize a 50% increase in value over 3-4 years to simply equal the expected returns of investing in bonds/stocks. Heck, if you consider stocks at 10% per annum, you would need to earn 60% return in 4 years just to stay even.

With the volatility and the limited market -- in a short answer, no.

m

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