[meteorite-list] Meteorite Pricing/Values

From: Michael L Blood <mlblood_at_meteoritecentral.com>
Date: Fri Dec 23 19:56:07 2005
Message-ID: <BFD1DB81.25FA3%mlblood_at_cox.net>

on 12/23/05 4:11 PM, Thomas Uza at biscuit_40_at_yahoo.com wrote:
> Value is an emotional or instictive response based on
> priorities.
> Thomas
-----------------
Hi Thomas,
        That is exactly right - and I was astonished to hear my friend,
Dean misquote me as saying otherwise! I have ALWAYS held the
stance you express above - especially when it comes to auction
prices. Auctions have the additional pressure of each person having
a finite amount of $ relative to the number of items s/he might
find highly desirable.
        When I started putting together my catalog, I started going, "Man,
I am going to have to bid on THIS one, myself! ..... over and over and
over, until I realized there was no way I could get all these, even if they
sold way below my cut off price - because there are many. many more
of them than there are dollars in my pocket.
        Therefore, a meteorite auction would only reflect the "true value"
of meteorites offered if two impossible criteria were met:
1) every meteorite collector in the world were present
2) all bidders had AS LONG AS THEY WANTED/NEEDED to pay off their bids.
        Of course, both these criteria are very much NOT in play. Instead,
we have a very finite number of bidders (no matter how many come)
AND they must pay off in full immediately. That severely "bends" any
possible "reflection" of "market value" on each and every sale.
        I am often told by dealers they resent my auction because the next
day someone will come in and ask about a specific meteorite, saying,
"It sold for XX/gram at the auction last night!" implying they "should"
be able to get it at a similar price.
        There is only one answer to such a fool....... "If you wanted it at
that price you should have bought it at the auction!" Of course, they
would NOT have gotten it at that price - even at the auction, as they
would have had to go AT LEAST one bidding increment HIGHER than
what it sold for - and there is nothing to guarantee that bid wouldn't
have been taken yet higher.
        So, when collectors walk around Tucson "armed" with the information
of what price something sold for at the auction, you are, in fact, unarmed!
        In addition, if there happen to be several collectors who want
a specific piece it can go for far more than it might otherwise go for.
This is what makes auctions such a hoot. It is because they NEVER reflect
the "true market value" of items that they are so exciting and fun - both
for buyers and for sellers. And I have never heard of someone going into
a room the day after the auction and saying, "Man, I can't take advantage
of you this way. That stuff sold for $5/g more at auction last night -
here, take more money!"
        Sellers, especially when entering items with no minimum, are
assuring themselves of a considerable amount of income..... some high,
some low, but averaging out to a lot of money, regardless, AND they are
not "setting the market" at a lower level while assuring themselves of
a big hunk of change coming in.
        Buyers get two things:
1) a huge variety of highly desirable specimens
2) most at "no minimum" meaning EVERYONE has a shot at it.
(last year a full slice of LA 002 - unavailable at ANY price, went
for well below the price it's sister, LA 001 sells for regularly. I
KICKED MYSELF OVER AND OVER FOR MONTHS that I did not
bid on that piece well above what it sold for! - fortunately, the
person who DID get it is a terrific guy, so, I feel less freaked out
about not getting it myself).
        I wish Dean would bring his beautiful bride to the Tucson
Show for us all to see here and admire his South Pacific tan. But,
alas, he is apparently having too much fun on the other side of the
globe.
        So, the point is.... Dean is right that he and I are good friends,
but very much wrong in saying I said auctions indicate squat about
meteorite market values!
        Best wishes and a MERRY CHRISTMAS to all! Michael
Received on Fri 23 Dec 2005 07:51:13 PM PST