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The Pros and Cons of Auction Sales
In a coin collection, the most difficult part is how to find the coins for the collection. A collector抯 main method of acquiring coins is by buying them. The most common alternative in acquiring a coin is through purchase in auction sales.
Rare coins and those that are of high quality are very difficult to buy. Auction sales whether online or at auction houses provide coin buyers the option to acquire these types of coins at lower prices. Online auction sales usually take 3 to 4 months to process depending on how fast bidders can decide on their bids or when the bidding process closes.
No matter how popular auction sales have become to many collectors, it is still important to know the advantages and disadvantages they can provide to coin collectors. Here are some points must to be considered before buying in auction sales.
Advantages
1. Auction sales provide simpler negotiations,[link widoczny dla zalogowanych], and is the simplest way of buying coins for a collection. This is because of the set price that is reserved for the coin. It is easier to weigh options and estimate the price of the coin.
2. Auction sales include a bidding process. Buyers will only need to bid to the price they are willing to pay for a specific coin. This means that a coin will be acquired within the allotted budget of the buyer. If a buyer really likes a coin, then he can bid a higher price so that there is a higher possibility of winning the bid.
3. There is also a chance of getting the item if the buyer who won the bid was not accepted for some reason. This may also happen when the price that was reserved for the coin was not met. When this happens, the item for bidding is usually passed. This means that the item will not be sold and the bidding will be re-opened any time soon.
4. Contracts are involved in the bidding process. Once a buyer wins a bid for a specific coin,[link widoczny dla zalogowanych], contracts will be exchanged immediately between the successful bidder and the seller. This will ensure that the negotiation was completed and the bid price of the item is confirmed.
5. The person who has the highest bid may be allowed to make a deposit payment. This will ensure that the item will be reserved for the person who won the bid. Deposits may be a fraction of the whole amount of the coin.
Disadvantages
1. When buying in online auction sales,[link widoczny dla zalogowanych], there is a higher chance of fraud. This is because the negotiation is done online. The buyer does not see the person who is selling the item or know if the other bidders are real people who are actually bidding for the item.
2. There also times when the item that was displayed on the website before the bid is not the same item as the one that was delivered to the person who won the bid. It is recommended that the buyer should ensure that the very same item that he bid for is the one that will be delivered to him.
3. The reserved price of the item may also cause some disadvantages. There are times when the reserved price that was set on the item is higher than what the buyer expected. This will force the buyer to bid higher and exceed the budget they have allotted for the item.
4. Online auctions cannot ensure the buyers that what they are bidding for a genuine item. The buyers will only be able to inspect the coin once they have won the bid and the item is delivered to him. This may lead to fraud and the buyer ends up regretting that he bid for the item.
Auction sales may be popular but it is still strongly but be advised that buyers need to be aware of the pros and cons of this option. Buyers also must be familiar with their rights as consumers and buyers. Other options may also be considered before choosing the auction sale option in acquiring coins for collection.
Collectors may consider buying from friends or agents that they know but if they still would like to buy in auction sales, they need to make sure that the website or the auction house has no record of illegal activities. Buyers should also spend some time reading reviews about the sellers to make certain that they are dealing with credible people.
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