Goldin Auction - Honus Wagner “Rookie Card”

[Fred]

Originally Posted by benjulmag

Peter,

That is a recognized practice among most major auction houses, disclosure of which is buried in the fine print of the auction rules. I characterize it as legalized fraud, as its purpose is to induce bids on the mistaken belief there is genuine interest at that bidding level.

Uh, yeah!

Why is this type of auction/sale allowed. It's basically trying to induce people with a lot of money that don't know any better to purchase something very hyped.

Why is this legal? Is this a practice/tactic auction houses like Lloyd or Christies employ?

[Yoda]

I believe Aaron Seefeldt owned this card at one time. I am sure he could add something here.

[Peter_Spaeth]

Originally Posted by Yoda

I believe Aaron Seefeldt owned this card at one time. I am sure he could add something here.

Look on the other thread I referenced, he posted there.

[benjulmag]

Originally Posted by Fred

Uh, yeah!

Why is this type of auction/sale allowed. It's basically trying to induce people with a lot of money that don't know any better to purchase something very hyped.

Why is this legal? Is this a practice/tactic auction houses like Lloyd or Christies employ?

It is employed by Christies and Sotheby's.

[oldjudge]

I like the HA method where they just disclose the reserve late in the auction process. I was unaware that Goldin Auctions did this; I think they should be more transparent and change to the Heritage method.

[Aquarian Sports Cards]

Originally Posted by oldjudge

I like the HA method where they just disclose the reserve late in the auction process. I was unaware that Goldin Auctions did this; I think they should be more transparent and change to the Heritage method.

In their terms Heritage also states the right to bid an item up to the bid below its reserve.

[robertsmithnocure]

Originally Posted by Fred

Is this a practice/tactic auction houses like Lloyd or Christies employ?

I think that this practice is common with many of the major art auction houses.

Other niche auction houses, like some in our hobby, use a similar practice too.

This is from Mile High Card Company's Auction Rules on their website:

2d) ...A reserve price is the confidential minimum price that a consignor will accept before they will sell the material, this means that a bid of equal or greater than the confidential reserve must be placed for a successful bid to be accepted on that lot. MHCC may implement this reserve by bidding on behalf of the consignor and may place a bid up to the amount of the reserve, by placing successive bids if necessary. In the limited instances where MHCC has a financial interest in a lot beyond our commission, we may place a bid to protect our financial interest...

And from SCP Auctions' Terms and conditions:

Reserve bid prices are not publicly available and will not be published. SCP may implement this reserve by executing bids on behalf of the consigner and may place a bid up to the amount one increment below the reserve, by placing successive bids if necessary.

[Peter_Spaeth]

As I like to say, bidding shenanigans have been going on since the first bushel of wheat was sold in the agora, and probably before.