Posts Tagged → bid
Last Dance at Julia’s Auction
James D. Julia was in full-throated auctioneer mode when I hung up the phone earlier today, his voice rising high above all the other competing voices.
With a standing-room-only crowd at Julia’s Auction in Fairfield, Maine, the background noise was overwhelming, even on the phone. Today being Julia’s last-ever auction, the place is packed to the gills with people who just want to experience it and be able to say “I was there.”
“Please yell at me, like you are mad at me, OK?,” instructed Debbie, the Julia’s Auction employee assigned to handle my phone-in bid. She could hardly hear herself, much less her client on the other end of the line. I, too, could only hear a roar, a cacophony of voices, with the auctioneer’s voice occasionally rising above it.
I have been to Julia’s several times, and it has never been anything like this chaos.
Yes, it is a long drive from central Pennsylvania, but if you are into the stuff I am into, then the drive is worth it. If for no other reason than to inspect in person the various antiques (my wife calls it all ‘rusty junk’) of interest.
Julia’s firearms catalogues are phenomenal, presently approached in quality and accuracy only by Amoskeag Auctions, but there is no substitute for being there and seeing the items in person.
Please understand that Julia’s catalogues are more than just sales listings. They are historic repositories of hard-won information, useful to researchers of all sorts, as well as helping set some parameters on overall market prices.
Julia’s catalogue photographs set the industry standard. Nor have I ever seen an example where Julia’s mislead or provided an inaccurate description of some item. No doubt it has happened, but compared to the other auction houses, Julia’s descriptions are perfection. Gospel, really.
The Lancaster double rifle I was interested in came up quickly, and before I could indicate a number, it was already at double what I was prepared to bid. On quick second thought, I was ready to bid higher, but by then the auction price was already beyond double my highest bid, which was still forming in my mouth.
“Do you want to bid?,” asked Debbie.
“Nope. I’m out, it is already way beyond my highest” said I.
“But it was nice just to be able to bid one last time at Julia’s, a place I have come to love and fear,” I said.
Debbie laughed at my joke, and then after a few brief pleasantries she said goodbye, moving on to help the next phone bidder in what will probably go down in the history books as the most expensive, frenetic, chaotic firearms auction ever.
Fortunately or unfortunately, Julia’s has been purchased by Morphy Auctions here in central Pennsylvania.
I say unfortunately, because no one likes to see a good thing change, and Julia’s is not only a good thing, it has been the best thing in antique firearms auctions, bar none. So now that it is becoming part of Morphy Auctions, it is disappearing.
I say fortunately, because the merger will bring all the highest-end antique firearms to Morphy, which is much, much closer to my home. No more long, long drives to south-central Maine. But this may be too close.
And that is why I say unfortunately, because now that all these guns will be on display so close to my home, like less than an hour away, I will end up acting like a kid in a candy shop: Out. Of. Control.
Oh, my suffering wife. Yet more rusty junk, honey!
Which brings me to a much more poignant point: Don’t assume things will always be so, because in truth things are always changing. When you see something good, and it looks right, and it is going to bring you pleasure, or happiness, or a good investment, then strike while that iron is hot.
Just five months ago, Julia’s previous firearms auction had barely anyone in attendance. Hardly any bidding occurred on most of the firearms there. Maybe one or two bids per item, except for the especially rare or collectible, with most going for just one low bid, filed by absentee bidders. No one knew then that Julia’s was going to be merged with Morphy, and so no one showed much interest.
Had people known then what they know today…that October 2017 auction would have been a mad house, like today is, and the assemblage of fine, one-of-a-kind firearms would have been much more competitive.
For those of us who did participate, we reaped the benefits of low competition.
Goodbye, Julia’s! You will be missed. We welcome to central Pennsylvania the many outstanding firearms experts who have made Maine their home in the past decades. They will be happy here, surrounded by lots of natural beauty and an all-American culture that does not punish or stigmatize gun ownership.
My only hope is that Morphy carries on the same high quality catalogues that Julia’s produced, in style, substance, photography, and descriptive accuracy. That is one thing the industry cannot afford to lose.
How to enjoy an auction, and which common mistake to avoid
Auctions are everywhere today. They are online, in person at local venues, and in person or by absentee bid at the big places, like Rock Island Auctions.
eBay and GunBroker, local farm equipment at Farmer Joe’s barn, on-site home and property auctions, regional outfits like Cordier, and the big ones like Christies, Sotheby’s, etc. Many auctions to choose from, all following some auction format, each with some minor but important differences (warranty, returns, defects, descriptions etc).
Pretty much anything you might need, or as is more common, want, is available at an auction.
Auctions offer an opportunity to get things unobtainable in any other venue, except perhaps through specialized and usually expensive dealers. For truly rare and expensive items, an auction may be the only place to bid on them, before they are whisked away to the next private collection. Auctions are fun and potentially lucrative for the buyer, almost never for the seller, and are definitely lucrative for the auctioneer, who charges both seller and buyer.
Auctions used to involve travel, getting a bidder number (no small feat way back when), and sitting through often tedious hours of boring junk while waiting for your own magic piece of paraphernalia to come up.
Auctions today are mostly different, though you can always travel to that upcounty farm liquidation sale, if you want that local flavor.
The Information Age and modern hand-held technology have entered into most auctions. Almost every auction today has an online bidding option, even the local ones, through either their own website or through ProxiBid, a real-time PayPal-like intermediary between seller and bidder. Many auctions allow bidders to place absentee bids through faxes or emails.
Never before have auction bidders had so much convenience and flexibility.
And online bidding really is unbelievably convenient. No more standing out in the cold, or waiting hours for your particular lot to come up. You find what you want online, put in your highest dollar number in their software, and go about your life, waiting patiently to see the result. If you really want it, really gotta have it, then you can probably find one with the Buy It Now option.
With auction sites like eBay, you have the choice to put in your highest bid, and wait to see if it wins, or you can also participate in that last 45 seconds of the auction, when there is a flurry of bidding by people trying to snipe one another and put in the winning bid, without disclosing that amount ahead of time.
And this is key.
The purpose to this last-second-snipe approach is, by not filing your highest bid up front, you do not disclose your final willingness to pay, your maximum bid.
That keeps other bidders guessing about their competition up until the last second. You may end up with a good deal at low risk, but it is definitely a hands-on approach.
It highlights a critical rule about auctions: The worst mistake a buyer can make in any auction is to disclose (to anyone) what his willingness to pay is; that is, his highest or maximum bid, the highest bid he is willing to make on any given item.
Once someone has that number, they can and will use it against you, even though they might justify it as helping their client, the seller.
Even the biggest auction houses, like James D. Julia, maintain purposefully vague and unknowable/ unprovable policies on absentee bids. For example, Julia’s policy states that absentee bids are “safe,” but nowhere does their policy state categorically that they will safeguard it and prevent it from being disclosed to anyone.
Fact is, the last people you want knowing your absentee bid are the auction staff! Many auction staff serve as paid bidders for buyers, and even for sellers, so when they access your absentee bid, their conflict of interest is full blown, but their policy permits it.
You will lose by submitting an absentee bid for real money. It will not remain secret, but will be used against you.
Even though submitting high absentee bids is an obvious mistake, it is nonetheless very common, because online bidding has changed the culture of bidding at all auctions, including live ones with an actual auctioneer calling out bids.
With online auctions, filing your highest bid ahead of time is a common practice, because it is so convenient. You plop in your highest number to the auction software, and walk away. If you win, you win, if you don’t, you don’t. You put your best foot forward and if you don’t succeed, that is OK, because you did not exceed your self-imposed limit.
Although this process is not transparent, for the most part it works for buyers. Probably because the stakes are usually too low to warrant the high risk to the seller or auctioneer manipulating the bidding outcome.
Modern online auction bidding is nothing like what auctions used to be, but this newfound ease and convenience also comes with a potential cost when it comes to live auctions. That cost is bidders will absolutely face fake bids placed by the auctioneer. As a result, bidders will see the price of their object artificially boosted well beyond the actual market demand, much more than would happen at a traditional live auction, and with even less accountability.
It is easy enough for live auctioneers to plant “shill” bidders and bids in their audience. In the blended world of live-and-also-online auctions, some auctioneers video record some, but not all, of the proceedings. Sadly, these recordings are laughably useless, but they give the veneer of propriety and accountability.
Bidders at live auctions today are dropping their guard, because the absentee bidding process in online auctions is now routine. Bidders assume there is no risk in this, no matter how high priced the item, because everything else they bid on goes smoothly in the online auctions. Yes, eBay has had some problems over the years, with obvious meddling by sellers in their own auctions, but those seem to be few and far between these days. And in any event, the prices and values were relatively low.
But what happens when you have a high-value item up for bid at live auction? Let’s say, a collectible gun, or an authenticated Persian rug, or a bona fide piece of rare art. These are items worth thousands or tens of thousands of dollars. With these numbers, there is a real incentive for the auctioneer or seller to manipulate the bidding process, to make the price go higher. They can take that absentee bid, your maximum, which should be held like a state secret, and they can create fake bids to get you up to your limit.
The problem here is that when you, the bidder, filed an absentee bid anywhere close to real money (thousands, tens of thousands of dollars), you violated the number one rule of bidding at auction: You disclosed the maximum amount you were willing to pay, ahead of time.
And now that the auction house or auctioneer has your highest bid in front of them, they can find “shill” bidders to post fake bids against you to artificially drive up the price. For you to prove they did this, even when it is obvious, you must file a legal complaint and pay an attorney to go through the discovery process. It is as easy as an auctioneer asking a well-known old dealer chum to throw in a few bids on an item, just to “help out.”
So our take-away is this: Do not file absentee bids for high-cost items.
Either participate in the auction in person, by phone, or through a buyer who is present in the room when the auction is being held.
To that point, I recently watched a video of an auctioneer and his assistant. This video was supposed to demonstrate the honest way in which the auction was held. Lots of gesticulating and interacting by the auctioneer and assistant. They were both dramatically acting on bids as if the room was packed and the bids were flying in.
Someone who was there told me the room actually held very few buyers, and all of them were hardened dealers. Overall there were very few bids, basically only one or two per item, for the entire auction. Few of the bids came from within the room, and most were absentee bids and phone bids relayed to the auctioneer by the auction house’s own employees.
But from the showman’s antics on the video, you would think a couple hundred buyers were seated there, every one of whom was waving their number.
How many absentee bids were artificially jacked by the showman on that day? How many buyers were shilled?
Auction buyer beware; file no absentee bids for real money (everyone has their limit, but mine would be anything above $1,000).
Participate in high-stakes auctions directly, or have someone else participate for you. But do not ever disclose your maximum bid to anyone, especially to the auction house. Because no matter what, it will be used against you, regardless of the empty promises made about how “safe” your bid is with them. Auction houses are in business to make money, and they will do that any way they can, and it is always at the buyer’s expense.