Bank of NSW 10 Shilling Note Sells

[markn]

Referencing this article:

http://www.abc.net.au/news/2014-03-26/oldest-australian-bank-note-fetches-record-price/5347938

An early Bank of NSW 10 shilling note just sold for $333,900 of which Noble's (19.25%) took their cut of $53,900.  They got to keep $49,000 of this and the tax man gets $4,900.

In November 2005 it sold for $283,095 of which Noble's (16.5%) took their cut of $40,095.  They got to keep $36,450 of this and the tax man got $3,645.

So we've got three stakeholders here who have seen their "investment" grow in the 13 years and 5 months since this note sold the last time.  How much has each "investor" seen their "investment" grow in this time?

Note Owner : Annualized return of 1.1%pa.
Tax Office : Annualized return of 2.3%
Noble Numismatics: Annualized return of 2.3%

So if we put aside all the excuses of the owner of the auction company about why the note achieved a low price he's still managed to more than double his return on the note compared with the poor bugger who owned it.  I guess that person can count themselves lucky that they bought the note in 2005 before note prices got really out of hand (in 2009-2011).  No doubt he/she would be staring a hefty loss in the face rather than earning rather less than bank interest which his "investment" managed.

Of course this is all assuming that there was no sellers premium for this note, which, I'll give the benefit of the doubt about.  Headline items like these usually have those fees waived.

[trout]

so out of the 2 sales the seller lost $50,805 and Nobles Made an after tax profit of $85,450.

No wonder Auction houses and coin dealers get bad names .

A fee of 85k to sell 2 items is quite frankly bloody ridicules , right up there with Lawyers , used car salesmen and estate agents :dodgy:

[JeffH]

We're in the wrong game.

[Bigfellani5]

The % return on turnover made by ebay or auction houses is more than I make. Coin dealers are going broke left right and centre because they are expected to draw wages on less than 4% net return. These margins are getting tighter with discounters, increased online costs etc. I hate to say it but the hobby is going backwards. There will be a day, and not too far off, that people will be saying "I  remember coins shops" or even "what is a coin shop".

[nealeffendi]

Are you certain that 16.5% is charged uniformly on all items? My understanding is that many auction houses have a sliding scale with a lower percent on big ticket items that bring in interest to the auction and attract the other sellers to list with that auctioneer.

[Bigfellani5]

you can sometimes negotiate a rate....but this is getting harder and harder to do

[trout]

No wonder Auction houses and coin dealers get bad names .

this comment was not aimed at owner operator b&T dealers Shane but the big players like Downies etc.

[Bigfellani5]

I know trout.....it just stings others make more for the gear you own

[trout]

I know trout.....it just stings others make more for the gear you own

that's just the way of the world Mate.
We spend our time toiling in the dark and the mud trying to ekk a living just so the "Fat Cats" can spend their days in the Sun :dodgy:
NO matter what asset you have   scrimped and saved   for, When you go to sell it some creep will want their cut out of it (Including the bloody tax man)

[jrg_from_oz]

It's even worse than that from the owner's point of view.

In 2005 he stumped up the entire $283,095 (ie price plus buyer's premium), but he now receives $280,000 (ie total less buyer's premium), so has actually made a loss. And if he is up for any selling commission, then he's made a bigger loss.

John

[Bigfellani5]

This is where I find things a bit rich. I fork out my money to buy something. It is irrelevant if I make a return or not...that depends on the market. However I have forked out my hard earned dollars. If I sell to a dealer the dealer forks out his money. The dealer budgets on 20 to 30% at most. The point is he has forked out his money. An auction house, without paying for an item, makes 30 to 40%. So lets say you are selling a $100 item. The mint made a profit of around 20% after manufacturing costs...but they owned it. The dealer that sold it to you made 20%...but they owned it, the auction house made 40%. The biggest profit went to the auction house and they never owned the item.

[serial]

yes I agree, no risk, no real liability but the greatest return on investment (eg auction, advertising, security cost)
auction houses make way to much money for what they do

[Bigfellani5]

I have no problem with them covering costs and making money....they have to support themselves. I would be interested to know their % return on expenditure

[Fulvio]

people will be saying "I  remember coins shops" or even "what is a coin shop".

Been there, done that. Years of blood, sweat and tears, and every penny you ever owned, all disappeared thanks to the collective actions of your customers. Who, as it turns out, were actively working against their own self-interest as well.

Perhaps stupidity is the natural human condition.

We should all think about things more, and choose who we support more wisely. Yeah, right... *sigh*

[trout]

people will be saying "I  remember coins shops" or even "what is a coin shop".

Been there, done that. Years of blood, sweat and tears, and every penny you ever owned, all disappeared thanks to the collective actions of your customers. Who, as it turns out, were actively working against their own self-interest as well.

Perhaps stupidity is the natural human condition.

We should all think about things more, and choose who we support more wisely. Yeah, right... *sigh*

I make a conscious effort to only buy from B&M dealers when I can.
I suggest that more of us do the same instead of trying to save 1c in the dollar (If That) and support these Businesses. :ok: