Auctions
History
| |
It is generally accepted that auctions were recorded as early as 500 B.C. They were Babylonian wedding auctions, held annually, where women were sold for the purpose of marriage. These auctions were of the "descending type" where the offers for the beautiful maidens started high and went down until the bidder accepted the maiden. The "true value" in many cases, related to beauty and the less comely maidens sometimes had to pay a dowry to be accepted. Thus the price could actually be negative figure for the buyer. |
Auctions
were
also
used
extensively
during
the
Roman
Empire.
The
refinement
of the
auction
process
grew to
be much
more
organized
and
defined.
In
today's
language,
the key
players
became
the
consignor
(the
person
on whose
behalf
the
property
was
sold),
the
organizer
(regulator,
financial
backer),
the
promoter
(advertiser,
auctioneer),
and the
buyer
(highest
and
final
bidder).
Auctions
were
held at
the
"Atrium"
for the
purpose
of
selling
the
"spoils
of war"
at
public
auction
for the
soldiers
after a
military
victory.
Business
agents
were
said to
have
accompanied
the
warriors
into
battle
in order
to
facilitate
and
promote
expected
sales.
(The
Latin
word for
auction
is
auctus,
which
means to
increase).
The
Romans
also
used the
auction
to
liquidate
personal
property.
Marcus
Aurelius
is said
to have
auctioned
off
prized
heirlooms
and
furniture.
It's
claimed
that
that
auction
lasted
over two
months.
In
the
European
Middle
Ages
(the
15th.
Century),
King
Henry
V11 of
England
instituted
some of
the
earliest
auction
laws,
including
auction
licenses.
In
the
seventeenth
century,
auctions
were
held in
taverns
and
coffee
houses
to sell
art and
other
collectible
items in
Great
Britain.
Announcements
of sales
devoted
to land
appeared
in the
London
Evening
Post in
1739.
The
firm of
Sotheby's
was
established
in 1744
and
Christie's
was
founded
in 1766.
Soon
after
the
colonization
of
America,
the
auction
process
became
the
accepted
manner
of
selling
furs,
clapboard,
tobacco,
corn,
and
other
necessities.
As the
country
developed,
settlers
on the
western
frontier
bought
and sold
their
land,
crops
and
other
items of
necessity,
to
include
animals,
lumber,
horses,
debt,
credit
and,
unfortunately,
slaves
at
auction.
Today,
auctions
are an
accepted
media
where
bidders
can
compete
equally
and act
in their
own
interest.
When you
see a
car on
the
highway
and it
wasn't
purchased
new from
a
dealer,
the
chances
are that
it has
been
through
an
auction,
maybe
several
times.
Most
pieces
of used
farm
machinery
go
through
an
auction
several
times in
their
useful
life.
Most
farm
animals
go
through
an
auction
sometime
in their
life.
When an
industrial
facility
or
commercial
facility
closes
down or
moves,
an
auction
is
almost
always
involved.
Each
year the
U.S.
Treasury
Department
offers
several
trillion
dollars
of Debt.
Thirteen
and
twenty-six
week
maturities
are
auctioned
weekly
on
Mondays.
Longer
maturities
are
offered
several
times
each
year.
Each
week the
Treasury
Department
announces
the
amount
of debt
it will
auction
off the
next
week.
The
market
can be
thought
of as a
"forward"
market
that
serves
both to
allocate
and to
evaluate,
thus
establishing
"true
market
value".
| Other items that are auctioned consistently that we pay little attention to as average Americans are Timber, Mineral Rights, Mexican Railroads, Electricity, Radio Frequency's, PCS, Wireless Communications, MMDS, Telecommunications and Microwave point-to-point installations, just to name a few. The market trend for nearly all collectables, from antiques to racehorses, is established through the auction method. Appraisals are based on the value received for a like item at the most recent auction. |
|
When
rare art
goes
under
the
gavel,
the
vibrations
are felt
around
the
world.
The
personal
effects
of the
rich and
famous,
if sold,
are
marketed
at
auction.
It is
the only
way to
know
their
true
value.
Today,
auctions
are a
part of
the
American
way of
life.
They
fill the
buying
and
selling
needs of
thousands
of
people,
products
and
properties.
Since
many
products
have
their
origin
on the
auction
block,
no one,
regardless
of
financial
status,
can
escape
the
effects
of
auction
buying
and
selling
in
America.
Auctions
are
recognized
as an
excellent
method
of
establishing
"true
market
value"
and
distributing
goods,
property,
and real
estate
to those
who
value it
most
highly. |
