[meteorite-list] Tucson Auction #2

From: Kevin Kichinka <marsrox_at_meteoritecentral.com>
Date: Thu, 24 Feb 2011 16:46:02 -0600
Message-ID: <AANLkTi=j=4gmsYBrGqATsUv-+g_CO6P=a0f77_+o_kqr_at_mail.gmail.com>

Team Meteorite:

Here's my take on the future vibes from Michael's posting of sales
prices from his annual Tucson auction.

First, is there a non-dealer among us who prefers these results remain
"secret"?

I didn't think so.

Second, were the prices realized uniformly HIGHER than expected, would
dealers not trumpet these as comparisons? Would dealer's not
consequently raise their prices?

Of course not :>)

Case in point.

The first meteorite I ever purchased was Zagami in 1995. I followed
the Philip's Auction, one of the first ever, and it sold for $500/gm.
I called the consignor, a guy named Robert Haag, and asked if he had
more for sale.

"Did you see what it just sold for at the auction? Dude, $500/gm! I'm
rich! And you are the last person I will ever sell it to for my old
price."

My good friend Darryl, a meteorite dealer along with many other fine
talents, today voiced concerned with the impact of posting some low
realized prices at the Blood auction:

"The last thing needed is more confusion for the growing legion of new
buyers who are exasperated in their efforts to navigate the murky
waters of meteorite valuation. " He added, "I am all for
transparency, but transparency can frequently result in disinformation
if there is no context."

"And to be clear, I did not state this (Blood auction) was a wholesale
event. I suggested that (it) be stated that the auction occurred at a
wholesale marketplace."

I would define the Blood auction as an auction "just like all
auctions", with final prices realized being wholesale, retail and in
between.

But there is some history to consider in this issue, let's examine the
entire "context" of meteorite auctions.

No one rushed to publish disclaimers, as Darryl suggests is desirable
now, associated with the auction prices back in the 1990's, when
dealers found a willing and able public wanting to own - for the first
time- "rare" meteorites at seemingly high prices at NY auctions. The
prices for many specimens were so remarkably high they appeared in
newspapers all over the world. No one consigning or profiting from
mets in those first Natural History auctions voiced concern about the
public being confused by "the context" of the setting.

The context was this, prior to the Philips Natural History auctions,
the market for meteorites was skinnier then a thin section, and these
auctions opened established dealers to an extremely windfallish
worldwide clientele of generous, happily naive bidders. Darryl can be
proud of his work with that auction house in making it all happen.
Philips was the "first mover" into offering natural history
collectibles and they did quite well for awhile.

But there were no disclaimers offered about context. Just happy people
buying things that made them happier. No harm, no foul. Just as it
should be today.

As for Darryl's feelings that "new buyers... are exasperated in their
efforts to navigate the murky waters of meteorite valuation," I can
speak from personal experience.

I was a frequent "winner" at those early auctions and had never bid on
anything before in my life, let alone a...... meteorite (?). Somehow I
navigated through those high-priced "murky waters" without a life vest
"disclaimer" being thrown to me. I am glad for the specimens I won,
the prices paid were pertinent that day. No worries. We're not talking
about spending the money budgeted for the baby's milk, meteorite
purchases come under the category of "discretionary income".

We were all "new buyers" at some point (and some of us were "new
sellers" the next day) and I can't today picture, following any review
of auction prices realized, anyone mumbling/grumbling over their
morning coffee after losing sleep trying to calculate the "real" price
of NWA 5717.

I say publish the Blood auction results without disclaimer. People are
smart enough to figure out the game. Transparency in public auctions
accrues trust which grows auction participation.

Who will argue against that?

Kevin Kichinka
Tambor de Alajuela
www.theartofcollectingmeteorites.com
www.LaQ-CostaRica.com
Received on Thu 24 Feb 2011 05:46:02 PM PST