PCGS The Standart for the Rare Coin Industry

If no one in the audience bids higher than the opening call of $2,200, then it goes to the mail bidder for that amount, and the person who bid $2,500 acquires it for less than his top authorization. If a floor bidder bids the same amount as a mail bidder, the mail bidder, being the earlier bidder, takes preference.

At the sale bidding paddles with numbers are given to the participants. Most hold the paddles in the air, making it easy for the auctioneer and others to follow the action. However, some bidders wish to remain anonymous, and this is fine. By prearrangement systems are sometimes set up with the auctioneer.

I recall one instance in which a well-known specialist desired to purchase a rare early American coin, but was afraid that if others in the audience saw him bid on it, they would bid slightly more and take it away from him - knowing that he had the best idea of anyone as to what it was truly worth. No comparable specimen had appeared on the market for years. And yet he did want to bid obviously, for he would be in the audience and others would expect him to bid.

He set up this arrangement: Taking a prominent seat in the audience, he told the auctioneer that he would put his hand in the air and would be bidding up to a certain level. If the competing bidders forced him to exceed that level, then his hand would come down, but Herbert Melnick, a well-known dealer (since deceased), would be bidding on his behalf, but no one would know this. If Melnick bought the lot it was to be charged to our client's account. The coin opened at a modest figure, and my client put his hand in the air, at the same time looking around to see who else was bidding. Five or six other hands were in the air at the same time. The bidding progressed, level by level, until our client and just two or three others were bidding, when at which time the client lowered his hand. Everyone except the auctioneer thought he had dropped out. Then Herbert Melnick raised his hand, and our client, not being a shy type of person, said so that all in the audience could hear: "The price is getting ridiculous - it's not worth that!" He was endeavoring to dissuade anyone from bidding much more. However, the competition continued, and finally Melnick bought the lot for a world's record price.

In another instance a client told me that if he was seated and was holding his bidder paddle, then he was bidding, but if he was standing and not holding his bidder paddle he was also bidding. When a particular lot, a rare early $5 piece came up, he sat in the back row and bid until it reached the $11,000 level, at which time he put his paddle on the seat, ostensibly stopped bidding, and stood up - but really continued bidding past $20,000.