Looking Back #28 - Informed Bidders Know Market Values

Informed Bidders Know Market Values

Editor's Introduction: The following continues
yesterday's report concerning results of a survey
of stamp collectors throughout the United States
in response to 25,000 questionnaires sent out in
1939 regarding stamp auctions.

In connection with this survey, the opportunity
was afforded us by several large auction firms,
to inspect the original bid sheets which were
submitted on actual sales. A tabulation of
the bids indicates that the average intelligent
buyer at auction is so well informed on market
values and conditions that the great majority
of bids are nearly identical.

As a consequence, on many items there was very
little opportunity to save the bidder any money
on his bid, and a surprisingly large number go
at the full limit of the bid in a perfectly
legitimate manner. There are of course scores
of bids in most sales from collectors who send
trivial bids, either in the mistaken notion that
stamps are practically given away at an auction,
or merely as "flyers" in case some lots are
overlooked.

On the other hand, specialists who feel they must
have a certain item will bid unusually high in
order to be certain of obtaining it. It only
requires one other specialist seeking the same
item to establish a new high price, and this
happens quite frequently. In such cases, many
auctioneers make a practice of giving the name
and bid of the underbidder when a lot is knocked
down at an unusually high price.

- from "Philatelic Auction Survey"
The Stamp Specialist Volume 1 Part I
November, 1939
H. L. Lindquist, Editor and Publisher