For instance, if the collector seeks the auction house’s advice, it is very difficult for the house to resist the temptation to push their own material instead of consignment items. The bidder enjoys greater peace of mind when the auction house has no vested interest.
A phenomenon peculiar to antique gun auctions that has been noticed by the author, is the lack of dealer “rings” or “pooling.” The practice is illegal, but one that has been rampant for many years in the antique auction business in both America and abroad. The “ring” consists of a number of dealers who have conspired to rig the bidding, electing one member of their group to bid openly and purchase an item against the general public, thereby assuring that the item never brings a fair, or top, price.
The owner or consignor is cheated from realizing full value for the item while the auction house is likewise cheated from realizing a higher commission. Following the auction the “ring” meets furtively and re-auctions the piece among themselves (the “knockout”), splitting the realized profit among themselves in various proportions established beforehand. The author has never witnessed a dealer “ring” at work at an antique gun auction.
Collectors and dealers have been found too independent and fiercely competitive … which usually makes for a spirited auction! Of course, the possibility always exists for the exception to the rule. It is sincerely doubted that such tactics will make inroads in this particular field. The practice elsewhere has been quite vigorously prosecuted in recent years. Auction galleries, in former years, were not the competitors to dealers that they have become today.
Their increase in numbers has made acquisition of material by dealers considerably more difficult. A noticeable difference is the great emphasis by auction houses on “investment” and “profit” potential. Although dealers certainly are not immune to stressing that point, the more conservative will tend to downplay it. Auction galleries rarely have the time or expert personnel to advise or guide neophyte collectors as an experienced dealer might.
For practical reasons many will not handle items below certain dollar values, which immediately eliminates segments of the collecting community. In many instances the collector might find it practical and advantageous to use a reliable agent when buying at auction; either because his own expertise is weak or he is unable to personally view or attend the auction.
Bidding agents usually charge a fee (10 percent seems about average) with such fees scaled downward if values reach five figures or more. It is a widely held opinion that the fee should be earned; to do so, the agent must be held responsible for more than merely bidding. While representing the collector, the agent should be answerable and held accountable for the authenticity of the item to be auctioned.
Any doubts that he might have as to its originality should immediately be made known to the customer, at which time the responsibility then passes to the customer. When a bidder does not personally attend an auction, placing bids by mail or telephone with an auction house, without the use of a personal representative, it is possible that their bid may be used against them.
Although telephone or mail bids should be used with the greatest of confidentiality, and it is assumed that a reputable house will do so, there have been enough unethical abuses of absentee bidding to create apprehension on the part of some bidders. Reputations of the auction house or the auction agent will certainly precede them. Above all … never bid on anything unless you have personally examined it … or had a trusted representative examine it … or have an ironclad money back guarantee from the auction house that it may be returned if found not as described.
This article is an excerpt from Flayderman's Guide to Antique American Firearms. Click here to learn more.
This gun collecting series brought to you by NM Collector Software.
Recommended books for gun collectors:
Standard Catalog of Firearms, 20th Edition.
The Official Gun Digest Book of Guns & Prices 2010, Rifles, Pistols & Shotguns