Gold bid prices on Luxury Goods Auction

ATC111
ATC111 Posts: 78
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edited 2 December 2023 at 11:26AM in Savings & investments

There is currently an Irish Government online auction of luxury goods (proceeds of crime). 

https://www.wilsonsauctions.com/timed-auction/listings?salecode=DO961

There are five one ounce gold bars and the current bid on each is in excess of the market value.

There is a buyers premium of 20% plus VAT (on the buyers premium only) so the total sale price (based upon current bids) will be circa €2200 per ounce bar, higher than today's price from a dealer at circa €1950.

Could it be that bidders have not done their research on the market price or factored in the buyers premium?

Am I missing something?

Comments

  • k12479
    k12479 Posts: 698
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    Gold bullion producers and some buyers like to stray from viewing it as a commodity to a collectible. The premium on bars can vary depending on the minter and the design. It could be that. Also 4 of them have sequential serial numbers, which likewise may appeal to some.
  • ATC111
    ATC111 Posts: 78
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    k12479 said:
    Gold bullion producers and some buyers like to stray from viewing it as a commodity to a collectible. The premium on bars can vary depending on the minter and the design. It could be that. Also 4 of them have sequential serial numbers, which likewise may appeal to some.
    I checked the producers mentioned and they’re all less that €2000 an ounce 
  • k12479
    k12479 Posts: 698
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    Auctions often induce irrational and impulsive behaviour, so it could just be that.
  • The provenance of the goods ("Used to belong to Big Mickey before he went down....") might also attract a voyeuristic premium. 
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