Friday, July 8, 2011

Charles Sweigart of Reinholds, Pennsylvania adds some additional thoughts on the meaning of auction prices realized at James Julia’s.

Note;

All the unsold items were reserved. No bidders found the reserve levels attractive enough to participate. The items sold were either reserved at attractive levels or had under bidders to support the price realized.

The free market system only works at auction with under bid support whether human or reserve. A buyer who believes the value of an object is far greater than the price achieved at an auction will never be caused to bid to their limit without the forces of the under bidder. They might pay an amount closer to that level in a retail environment, though it must be recognized that the pressure to beat the competition is somewhat lessened in that scenario. This clearly illustrates the price support that is given by the merchants who under pin price levels at auction and how the reduction of business removes the investment capital required to continue the price supports.

History shows, the time to acquire the objects you have a passion for is when others are not willing to pay the price. If buying for future profit, usually a profit is to be gained using this method. If buying because you love the object, profit is irrelevant. Pursue your passion regardless of the economy and enjoy the time you have left. They say the one with the most toys wins in the end but I believe the one who plays with his toys the most is really the true winner.

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2011 Carder Steuben Club annual Symposium will be held at The Corning Museum of Glass in Corning, NY from September 15-17, 2011.