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To: Tradegod who wrote (65885)	7/1/1999 3:44:00 PM
From: Cap_Loss_Cfwd	Read Replies (1) \| Respond to of 164684

>>Can you explain? (Auction Reserve System)<< There are two ways that a seller on Ebay can assure a minimum price on any sale. First, they can set the initial bid amount so high that they assure their profit. However, the bidders see this initial bid amount and of course can simply choose not to bid. This is the reason why there are so many auctions that receive no bids. THe second method is the "reserve" system, where a seller can set a confidential reserve amount. This means that if the bidding never reaches the sellers reserve price the auction simply goes away. I have noted (on gold coin transactions specifically, but I am sure this applies to many items) that most of the auctions are by dealers, many of whom set the reserve prices at the prices they have advertised for the items on their own web pages. In other words, there is no way you can save money on the auction. The only significant savings I have found is the soon to be eliminated fact that you don't have to pay sales tax on out of state transactions.