Quote:
Originally Posted by Peter_Spaeth
I think it's probably mostly "flippers." Someone on BO mentioned they will also loan money against your vault holdings, so maybe "investors" are looking to work that angle too and leverage more purchases, I don't know.
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Aaaaahhh.....hadn't heard that one before. That sounds like a pawn shop operation then, which I believe are also subject to differing laws and regulations, depending on what state the pawn shop is operating from. I've heard of consignors sometimes getting advances on items they are putting up for sale with auction houses, but always thought that was only through actual, licensed auction houses for consigned goods. Thought outfits like PWCC and Probstein were different from fully licensed and state regulated AH's though, and therefore such advances would be considered more in line with pawn shop activities after all, especially if in PWCC's case the advances are being made on items kept in their "vault" that have NOT been formally consigned for actual sale by PWCC yet. I would think that distinction could make a difference. Have not seen or heard about what actual agreements or documents PWCC has people signing in regards to placing items in their "vault", what additional agreement or documents (if any) are also required to be signed to remove an item from their "vault" to then being formally consigned for sale, and whether or not the "vault" operation and PWCC's Ebay sales consignment operation are actual, separate legal entities, or all just one company. Would love to see blank/redacted copies of all these PWCC agreements and documents to get a better idea of exactly what they are doing.
Would also assume there could be a difference if these $100M of submissions were actually being made to just PWCC's "vault", or if they actually were tied to consignments for sale. An earlier poster questioned the veracity of the reported PWCC "vault" submissions at the National. Is it possible that figure could in reality be a combination of true "vault" submissions and sales consignments?