Online Auctions - Buyer Beware

News: Welcome to the Canadian Paper Money Forum.

I like many other collectors of Canadian banknotes constantly search online auctions worldwide in search of a good bidding opportunity.  Over the past 4 months I have been watch an online auction house called BK Auctions in Westlake Village, CA.  You can find them on icollector.com, invaluable.com and other auction sites.

I noticed that a note I was tracking was consistently sold at their online auction but would then reappear in a future auction.  This did not appear to be a case of the note not selling as the start price of the lot was always USD $1 and the stated sold price was in the hundreds of USD. 

Here is a sample of what I recorded over just the past 4 months for this 1935 $20 Bank Of Toronto S/N 07763.

March 17th, 2019           SOLD for USD $ 475 + BP March 1st, 2019           SOLD for USD $ 500 + BP February 2nd, 2019           SOLD for USD $ 600 + BP January 18th, 2019           SOLD for USD $ 550 + BP December 30th, 2018           SOLD for USD $ 475 + BP December 9th, 2018           SOLD for USD $ 450 + BP November 18th, 2018           SOLD for USD $ 450 + BP I decided to take a close look at the lengthy terms and conditions for their auctions and found the following snippet that was very interesting. 12. BKA, and any consignors, reserve the right to bid on any lot(s). Unless explicitly stated otherwise, all lots are subject to a reserve price that shall be hidden from all bidders. BKA shall act to protect the reserve by bidding in the auction process if needed. BKA may open bidding on any lot below the reserve by placing its own bid. BKA may continue to bid on behalf of itself up to the amount of the reserve, either by placing consecutive bids or by placing bids in response to other bidders. So in essence the auction house and the consignor can bid up the lot in an effort to meet the reserve and the reserve is hidden at all times.  You as a bidder have no idea as to the reserve or whether you are bidding against another legitimate bidder or the auctions house that is driving up the price. Anyways,  I post this only to recommend that anyone who is bidding online perform their own due diligence as to the history of the banknote you are bidding on, as well as, the terms and conditions outlined by the auction house.

Great information for all collectors to pay attention to what is going on, especially online auctions.  thanks for keeping us informed.

I noticed a similar situation last year with a popular Canadian auction house (not saying which one because they will probably sue or something).  A couple items would "sell" then become listed in the next auction. Maybe it was a fluke and the person did not pay or something but it caught my attention.

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I noticed a similar situation last year with a popular Canadian auction house

-I agree & have encouraged others (on this & other forums) in the past to avoid them.  I've seen the same notes (& lots) go up over and over again.  It makes no sense (unless they partake in "shell bidding" & they have ended up bidding the item out of a true/legitimate winner.