Penny Bid sites

[RickLeibo]

Does anybody have any experience with these penny auction sites. Is there a key to how? or just stay clear?

[bjl584]

People are auctioning pennies that were minted before a certain date. I can't remember the date off the top of my head, but the reason is because before that date pennies contained more copper.

The trick is some hanging legislation out there that was set to expire or be voted on. Currently pennies can not be melted down. But, if the law changes you will be allowed to melt them and retrieve the copper from them which can be sold for more than the pennies are worth, at least at current copper prices.

It's a lot of what ifs, speculation, and even if it all comes together you will still need a menas by which to melt and recast metal.

I'd stay away.

[gostumpy]

I think OP is talking about sites like "Quibids"?

I researched them extensively a few months back thinking they may be a good idea.

They're not.

You need to pay for your bids. So even if you are only increasing the bid on the product by one penny, you had to pay for the bid you placed, and they are not cheap! I can't remember exactly, but I know it would have cost me ~$60 to START bidding, and you run out of bids REAL QUICK.

When you make a bid within the last 15 seconds, the counter gets reset to 15 seconds... so each time it gets down to 1 or 2, someone else bids, and it gets reset... I've seen things go for the last 15 seconds for HOURS AND HOURS, having THOUSANDS of bids placed on it.

Genius marketing on behalf of the bidding sites, they make 5x the cost of the product in bids, so they can afford to offer it, let people bid, then just buy the product for full retail & still make 400% profit.

It's a scam. Steer clear.

[RickLeibo]

Thanks

Both helpful thanks.

[BostonMike]

People are auctioning pennies that were minted before a certain date. I can't remember the date off the top of my head, but the reason is because before that date pennies contained more copper.

1982 was the year the composition changes. It was a transition year as both versions were made. Prior to that, pennies were copper and are worth about 2 cents in copper.


But that's not what the OP was talking about...I think.

[BuckyBadger]

Yeah those penny bid places (as described by gostumpy) aren't what they're advertised to be. You spend a fortune on paying for your bids, and you probably don't win. The auction makes a killing because they have 100 people giving them $60 a piece to bid on a $1,000 television.

Crazy!

[ukgaz]

I actually signed up to Quibids to see if I was missing anything. The whole thing sound to good to be true. Anyway it was the equivalent of putting a match to money and watching it burn away

[RickLeibo]

thanks again

Thanks for all of the advice everyone!

[humandraydel]

I'll play devil's advocate...are there no strategies that can help you win? If the $1,000 TV usually sells for $150 can't you just not start bidding until $140? Honestly, I've always thought it was a borderline scam so I'm not surprised.

[thesimplemoneyblog]

I think OP is talking about sites like "Quibids"?

I researched them extensively a few months back thinking they may be a good idea.

They're not.

You need to pay for your bids. So even if you are only increasing the bid on the product by one penny, you had to pay for the bid you placed, and they are not cheap! I can't remember exactly, but I know it would have cost me ~$60 to START bidding, and you run out of bids REAL QUICK.

When you make a bid within the last 15 seconds, the counter gets reset to 15 seconds... so each time it gets down to 1 or 2, someone else bids, and it gets reset... I've seen things go for the last 15 seconds for HOURS AND HOURS, having THOUSANDS of bids placed on it.

Genius marketing on behalf of the bidding sites, they make 5x the cost of the product in bids, so they can afford to offer it, let people bid, then just buy the product for full retail & still make 400% profit.

It's a scam. Steer clear.

Great summary. A while back, I was curious how these sites were able to offer these deals, so I went to the sites and read the fine print and GoStumpy's summary is spot on for how it works and what people really pay. It's the alure of a cheap product and rush that people get when bidding that causes them to participate in these types of programs, but I know I will for sure steer clear!

[gostumpy]

I'll play devil's advocate...are there no strategies that can help you win? If the $1,000 TV usually sells for $150 can't you just not start bidding until $140? Honestly, I've always thought it was a borderline scam so I'm not surprised.

Even from $140 to $150 is a THOUSAND bids... so you have to be the ONE out of a thousand...

It's obscene to think of the amount of $$$ these sites make...

And above that, how do we know these things are completely legit? Friends of the owners, or someone that works there, could easily just 'gift' someone they know thousands of bids to drive things up... and we would have no way of knowing.


Scammy scam scam