Auctions: Be Brave & Bid!

Getting your Trinity Audio player ready...

Between the furious paddle-raising, breakneck pace of countdowns and the borderline gibberish of bid calling, auctions always seemed intimidating to me. However, after experiencing several sales, I realized auctions are an invaluable resource for all numismatists—whether bidding or not—and far less daunting than they may initially appear. Let’s clear the air, demystify the process, and get you prepared to hold up a (probably virtual) paddle of your own. 

Starting Out 

Before registering with a professional auction house, consider familiarizing yourself with the auction process by participating in or simply observing ANA YN auctions, local club or show events, and eBay. These outlets will teach you about bidding, budgeting, researching, and more. Keep in mind that if you’re under 18, you may not be able to register with your own credentials, so perhaps ask your parents if they’d be willing to do so on your behalf (and make sure to thank them afterward!). 

Real auctions sit a tier above these entry-level options. With online catalogs and bidding, there’s no better opportunity to purchase coins, especially for those living in areas without many shops or shows. The United States has many reputable auctioneers, the two most prominent for numismatics being Heritage Auctions and Stack’s Bowers Galleries. Registering online is relatively straightforward, but many firms require references. If it’s your first time, don’t fret—you can include other numismatic recommendations or, in some cases, put down a percentage deposit to get approved. Remember, particularly with eBay, do your due diligence before purchasing. You don’t want buyer’s remorse. Even professional auction houses staffed by, well, professionals, are not immune to mistakes. 

The age-old adage “buy the book before the coin” always rings true. It’s crucial to stay within your budget and avoid getting caught up in a bidding war, even if a coin feels irreplaceable. Sometimes setting a max bid, stepping away, and letting the auction run its course is the best method for your peace of mind and your wallet. Keep in mind that nearly all auction houses add a buyer’s fee (called a “premium”), usually hovering around 20 to 22 percent. For the less transparent firms, this may require some mental math. 

Going Global 

American auctions can only take you so far, especially for world or ancient coin enthusiasts. If you’d like to broaden your bidding scope, international auction houses may be the way to go. Auction portals like Numisbids and Biddr are great ways to find these dealers and encounter specialties that their American counterparts cannot replicate. Foreign sales also provide insight into the different prices that geographically scattered marketplaces bring for the same coins (do with that information what you will). 

My words of advice: first off, due to differing laws, it’s vital to read through the terms and conditions prior to bidding. It can be dull, I know, but well worth it. Don’t let hidden export fees, tariffs, or payment charges sneak up on you. Likewise, wire transfers are typically the cheapest way to send payments, but since the money is often unrecoverable, make sure you trust the auctioneer first. Also, pay attention to conversion rates, and bid when market conditions are favorable.

Purchasing coins at auction is a great way to build both your collection and your reputation.

Strategy

Understanding common forms of bidding can prove advantageous and give you the upper hand over other bidders. Pre-sale bidding is self-explanatory. Proxy bids are similar in that they’re placed before the lot is up, but they’re typically adjustable, only placed when the auction is ongoing, and won’t be executed until live bidding begins on that specific lot. In that sense, they’re extra secret. 

Live bidding is what it sounds like—that’s when you hear, “Going once, going twice…” When competing maximum bids are placed for the same amount, the earliest takes precedence. Therefore, if you’ve been outbid, but the current bid is exactly your maximum, you know that the other bidder has the same bid (otherwise, it would’ve defaulted to the next increment), so you can react accordingly. Also, it’s generally strategic to push other bidders to a higher increment threshold. For example, if there are $100 increments up to $1,999, and $200 increments at and above $2,000, then bidding $2,000 instead of $1,900 will be disproportionately more expensive for another bidder to compete with. 

Finally, remember that auctioneers are business people. They are selling a product. Be a little skeptical of flowery lot descriptions, images, and even assigned grades. After all, without bordering on dishonesty, it’s in the auction house’s interest to frame each piece in the most flattering light possible. Come armed with your best judgment. 

Just Looking? 

Purchasing coins at auction is a great way to build both your collection and your reputation. But beyond that, even looking can be a useful learning experience for understanding the changing numismatic landscape. Auction portals and archives (like ACSearch or CoinArchives) provide a wealth of knowledge that can help gauge the current marketplace, including historic pricing, population estimates, variety designations, provenance, and practically all realms of research. Discovery coins also typically come to light at auction, with sales giving a glimpse into those frontiers of the hobby. 

Conclusion 

I get it—auctions are action-packed and cortisol-inducing. When your lots are up, so is your heart rate. Just remember, stay smart and set your emotions aside. Don’t let the thrill of a “once-in-a-lifetime” deal get the best of you, and be willing to learn. Whether wistfully gazing at ultra rarities or bidding for a beauty, there is so much to glean from what passes across the auction block. 

Stay lucky. And most importantly, stay within budget. 

---

Nate is an 18-year-old Chicago-based numismatist who has been collecting since 2013. His current focus is world crowns from the 16th to early 19th centuries. Nate is the editor-in-chief of The Young Numismatist and serves on the Board of the Young Numismatists of America, championing the principles of education, engagement, and empowerment for youth in the hobby.

Sign up for the monthly Reading Room Rundown to receive more great stories!