CommodityAuction.com?

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tread_w_care
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CommodityAuction.com?

They are advertising here and I'm curious what the 'catch' is.

Looks like they generate their revenue from bids (they charge you to bid on an item).

Has anybody used this to pick up the occasional bullion item? 

Looks too good to be true.  I'm wondering if you have to spend $50 in bids to purchase a 1oz silver coin for 2.50 (today's spot price) or something silly like that.

Edited by admin on 11/08/2014 - 06:13

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tread_w_care
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Ah ha

Free to register, and you get 5 bids.  Watching an auction on a 1/10th oz Maple (Gold) go down to the wire, I see their game.

You have a handful of people (bots?) bidding against each other, in the last 10 seconds of the auction, every new bid increments the price one penny, $.01, and resets the 10 second clock.  So you've got a war of attrition that could go on indefinitely between bidders paying a price per bid:

So how do you get started?

To get started all you need to do is register, buy bid tokens which cost  $0.75 each, and place your bids.  That’s it.  All of our auctions are live and real time.  The way our auctions work is based on a countdown timer.  If you are the last person to place a bid when the countdown timer reaches  0:00 then you just won the auction.  Every time a bid is placed 10 seconds will be added to the countdown timer.  This ensures that everyone has the opportunity to bid on the item.  We value our members and their feedback.  If you have any comments or suggestions please let us know.  We want everyone at CommodityAuction.com to have a fun and exciting time.

Interesting business model.  At $.75/bid they're probably doing pretty well selling bullion at 90% off.

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"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat http://en.wikiquote.org/wiki/Fr%C3%A9d%C3%A9ric_Bastiat

tread_w_care
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Wow what a racket!

LMAO

So I've been watching this 1/10th oz Gold Maple auction from low .10's into the $5.00 plus range.

Recall every bid raises the price of the item by $.01 and resets the 10 second clock.

5.00 / .01 = 500;

500 * .75 = $375 already for a 1/10th oz Maple!

These guys are making a killing!  Now, the lucky winner might get a great deal (minus their bid costs, God knows how many bids to win it), but the house is raking it in. 

I think I'll open a site that charges $.60/bid wink

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"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat http://en.wikiquote.org/wiki/Fr%C3%A9d%C3%A9ric_Bastiat

tread_w_care
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Crikey

Here's your 1/10th oz Gold Maple winning bid:

Gold 2011 Canadian Maple Leaf ONE TENTH OUNCE

Winner!
$9.53
pageorder
 
9.53 = 953 bids @ $.75 each (probably lower per-bid costs but for the sake of this math we'll use their advertised price)
= $714.75 + $9.95 S&H + $9.53 winning bid - cost of the coin, let's say Apmex volume priced $205.10 = $529.13 net(ish).
 
Holy mother of insane premiums Batman! 

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"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat http://en.wikiquote.org/wiki/Fr%C3%A9d%C3%A9ric_Bastiat

Vypuero
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Yeah this is being done elsewhere

I heard of this - essentially your bids are really tickets in a lottery.  It is being done in other products too.  This is sort of a method of gambling almost.  I strongly advise NOT to get involved in this.  In fact, personally I think the entire scheme is unethical and possibly may be illegal, or will be illegal.

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One more thing

If it is what I think it is, we should ask TF to stop allowing them to advertise here.

ScottJ
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Indeed this is a scam of

Indeed this is a scam of sort, and if you want one of you guys send a message to him through the "contact" tab up top. I have seen this with plenty of other products (computers, videogames, etc...), but it may linger precious metal newbs into thinking they are getting a good deal.

To be fair though, most advertising is not always "ethically" appropriate in one way or another.  People who use this type of medium to try to "win" items on the cheap are responsible for their own actions, plain and simple. 

Either-way, just thought I would chime in.

tread_w_care
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true dat scottj

caveat emptor and all that ish

hey, if there's a willing buyer and a willing seller . . . free market anyone?

A fool and his money are soon parted . . .

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"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat http://en.wikiquote.org/wiki/Fr%C3%A9d%C3%A9ric_Bastiat

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