it’s so early and yet such a huge drop… is this what they call a “total collapse”?
Not at all..
It’s a single example of how the auction process works.
In many industries, auctions are held to liquidate inventory. A retail buyer OR wholesale buyer are dealing on the same level, i.e. they both have the opportunity to buy at the same price and terms.
There is a purpose for auctions. IF you agree and abide by terms of sale, it is a possible opportunity.
It’s not exactly true to say that is all the auction lot is worth. It is accurate to say that is all it was worth that day to the highest bidder that was present who was able to meet the terms of sale.
It is possible to buy things at auction and resell to another buyer quickly at a profit who didn’t attend the sale or who couldn’t meet the terms.
A duplicate lot on another day will not necessarily sell for the same price. An auction is not always a bargain. Many people overpay at them also.
There are always people who didn’t attend the auction, but will say “I would have paid more than that”
