would it be illegal for an auction house

cathryn · January 25, 2010, 07:48:35 PM

to purchase fur that they sell on commission and hold it themselves until the market goes up?

or would that be free enterprise as long as it went to them with the highest bid?

FinsnFur · January 25, 2010, 10:17:10 PM

I dont know for sure, but I'm pretty sure that's how it happens anyway.

I thought I remember reading something a while back about fur auctions buying fur and then the bottom falling out on the market, so they hold it and saturate the market with it when it goes back up. It causes chaos indeed.

I might be wrong though.

topdawg · January 25, 2010, 10:27:41 PM

we used to send our fur to canada and they would sell it for us on the open market,,,and then just send us a check

pitw · January 25, 2010, 11:03:12 PM

Cathryn a wee bit more info on this if you please before I get my foot in past the knee.

cathryn · January 26, 2010, 05:56:37 AM

i was told by a reliable source tha alot of the fur sent to an auction house last year was bought on speculatin very cheap by the auction house itself to be resold at a profti to them when the prices rebound.

if that did in fact happen, do you think it would be illegal, unethical or both...or fine?

would it be kinda like insider trading on their part if the did do that?

HaMeR · January 26, 2010, 07:17:59 AM

Once the auction house buys it they own it. They can do as they need to do to turn the profit needed to stay in business. It's neither unethical nor illegal. It's just business. The fur seller has the same options at home as whether they sell low or wait for a better offer.

Or so it seems that way to me anyhow.

pitw · January 26, 2010, 07:32:25 AM

Cathryn it wouldn't seem ethical or legal to me

. I suppose I've been to too many auctions where the auctioneer was unscrupulous. If they are doing this it would have to be through a third party I'd think. As the auction house itself couldn't legally bid[I'd think]. If someone else wanted to bid on say lot A[105] and then have the auction company store[they'd have to pay for this] the lot until a future sale and then resell, I could see that being legal. I can't however see the auction house itself doing it cause they depend on their integrity to get me to sell through them.

cathryn · January 26, 2010, 08:43:20 AM

i agree bout the 3rd part deal.

they used to fund people during the fur boom to buy fur for them to sell. a third party broker in essence would be doing the same thing, wouldnt he? just on a different level and stage of the market.

slagmaker · January 26, 2010, 09:35:51 AM

just need an agent of the auction house to bid till the fur hits a "Reserve" that way the fur will sell for no lower than a minnimum amount set by the auction house. The seller of the fur is happy becasue he gets paid and with the market the way it is, probably more than he would have gotten if it was simply sold to the next in line, . The Auction house didnt take a bath on the fur and all they have to do is warehouse it till the market goes up. Then they sell it to the highest bidder.

Nah nothing unethicall about that as long as th agent for the auction house is only bidding to a set minnimum. Buy low sell high.

pitw · January 26, 2010, 09:46:31 AM

Quote from: cathryn on January 26, 2010, 08:43:20 AM
they used to fund people during the fur boom to buy fur for them to sell. a third party broker in essence would be doing the same thing, wouldnt he? just on a different level and stage of the market.

Seeing as I don't "know", I kinda hate to say what I think Cathryn cause when I assume, I always end up getting the kinks stretched out of me. As you know there are more conspiracy ideas than actual factual ideas so without "knowing" we can make some wild guess's. I work under the guise of "stupidity" and send my hides to either NAFA or other auction houses hoping that government regulations will keep them somewhat honest. I can't really think of any money making business that doesn't try to increase their take by whatever means possible so I suppose fur auctions wouldn't be any different.

cathryn · January 26, 2010, 06:09:12 PM

we send our fur to NAFA too and i dont have a problem with them

if it was done it was done to keep the fur from selling for pennies and they couldnt buy it back cause they did that the 2 previous sales and caught all kinds of hell from the dhippers for doing it.

they either had to buy it back (which would have gotten them more slack) or buy it themsleves...unless they let it got to some Chinese for .50 a pelt.

we got a letter last year saying that they were gonna let the trappers lots go for whatever cause they had fieled too many irate trapper calls.