The DEMISE of the Auction Houses?

[GoldenAge50s]

Seems like it was just a year or 2 ago a thread was started (I think by the Bruces) predicting the fall of several auction cos in the coming year, mainly because of the economy.

Well, the economy is STILL not right and yet I don't think I've ever seen so many new auction ventures springing up as we have in the last few months!

Seems like every day lately Leon has a new banner advertiser & I've had more EM's announcing the startup of a new company that wants my bids & consignments than I've EVER had!

As far as I can see, card prices are still generally depressed except for the "cream of the crop".

What is going on here?

[Exhibitman]

Same thing that's going on in other sectors of the economy: since there's no work elsewhere, people are trying to create jobs for themselves. Franchises, direct sales, multilevel marketing, all of them grow when jobs are scarce. Starting an auction business is just the card industry way of doing it. Hell, if I had the time I'd be inclined to try it too.

[scooter729]

I think with the way eBay has upped its fees over the past couple of years, coupled with the way sellers can often fall victim to scamming buyers (thanks to PayPal always siding with buyers), we're obviously seeing fewer auctions on eBay.

I'm guessing some of the new auction houses have opened in anticipation of a higher perceived demand for their services, for those who want to avoid the chaos that can be eBay.

[tbob]

Fred- as a consignor in the upcoming REA auction I am going to be watching very carefully to see whether the economy has an effect on the selling prices for items. I have believed all along that the last year and a half has been the time to be buying, not selling, but I think the REA prices might give a clue as to how soft or how resilient the card market is. I do know that I took Rob's advice and all my cards in the auction are graded (SGC). I think buyers now more than ever feel more comfortable buying graded cards, even if those graded cards are graded lower (so what else is new) than the consignor anticipated.
tbob

[GoldenAge50s]

3 very inciteful replies. Tried to find the old thread about failing auction houses for review of what actually was predicted, but couldn't. I'm sure there were some who supported the theory at the time.

I just find it ironic that there are SO MANY new ventures in the field at this point in time.

I agree folks have to be inventive when jobs are scarce, but they MUST have Buyers too!

[ls7plus]

Have to agree with tbob that now is the time to be buying, as I believe many collectors have been forced to part with some very nice items due to the economy. On the other hand, if you're selling desireable yet not so very tough cards, it can seem like you're making gifts to strangers with the depressed prices of the much more common '50's and '60's stuff. It will be interesting to see how REA fares, but it seems that the big boy buyers always have great gobs of bucks for significant stuff (whoa--three alliterations in one sentence!).

Larry

[ChiefBenderForever]

As long as they get good stuff they will be fine. I am always amazed at the amount of really great cards offered month after month by all the different places. For stuff that is really tough sure is a steady supply usually getting strong prices