The E-Sylum:  Volume 10, Number 12, March 25, 2007, Article 25

AUCTION RESULTS: WITH OR WITHOUT BUYER'S PREMIUM?

Last week we published the following from the press release on the
results of the Kolbe numismatic literature sale #102:  "Featured were
707 lots on a wide variety of topics, with a total estimate slightly
under $79,000. Reflective of the strong current market, over 85% of the
lots sold for a total exceeding $90,000, including the 15% buyer premium."

A reader notes: "I object to the apples and oranges approach above.
The estimate was $79,000 without the premium, or $79,000 x 1.15 =
$90,850 with the 15% premium.  I know my math, and I can do the figures
in my head, but too many people will look only at the gross figures
and think $90,000 is a whole lot better than $79,000, where in
actuality they are the same.

"True, the $79000 figure was for 100% of the sale, and the 85% that
sold realized $90,000, so on that basis Kolbe did fine.  But, assuming
the estimates were equally divided over the sold and unsold lots (not
likely), it is hardly a ringing endorsement for a 'strong current
market'.  Rather, I'd say Kolbe had accurate estimates, and he sold
85% of the sale.

I see this with- and without- the buyer's premium comments in the
numismatic press all the time, and I would strongly urge all involved
to settle on one or the other, and be consistent.  End of speech!"

  Wayne Homren, Editor

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