Penny Auction - A Type of Online Auction

quibids reviews - I had never heard the term “penny auction” whether referenced as an online auction or physical auction. When I saw it in an email communication, I decided to check it out. I researched the term and found some interesting information on the origins of these auctions. It seems that they originated in the United States during the Great Depression. They came about because people were losing their farms due to the inability to meet the financial obligations made with the lending institutions at that time.

A Little History

The history reveals that banks would hold auctions for the property of farmers on whom they were foreclosing. At the time of the actual auction, neighboring farmers and friends of those losing their property would attend the event and would prevent legitimate bids on any property from being made. In their attempt to help their friend or neighbor, they used whatever means was necessary to keep the bids to virtually pennies. Frequently, farms and all the property associated with it were sold for under $5.00. This sounds pretty amazing to me…$5.00 in 1932 had more buying power than it does now but it was still not much at all for a farmland, equipment and buildings. The banks had to accept the proceeds from the auction as full payment for the debt. Needless to say, the banks, at that time, were not happy. They found ways around this illegal type of auction.

Online Penny Auctions Today

quibids reviews - This type of auction still takes place today but it has changed significantly. First of all, it is now legal and, secondly, it is frequently an online auction. These internet auctions can be found all over the net, in every country of the world. The products posted for sale on them is quiet varied. The sites tend to have a short life cycle, typically 3 to 5 years.

Advantages

quibids reviews - Though these sites are fraught with fraudulent participants, there are legitimate ones out there and there are advantages to the buyer for participation. As a buyer, you have the opportunity to get a real deal (or steal) on products, especially high ticket ones; there is always the chance of locating a rare find; some buyers experience a great deal of joy and excitement in dealing with the global implications of online auctions; and then there are those buyers who just delight in the bidding activity. The best part…it can all be done with a click of your computer mouse from your easy chair, or from the office, or from the seat of an airplane or using your mobile phone from wherever you are.

Online auctions can be fun as well as cost effective for many purchases. And, remember, there is always a chance you will find that special piece for a collection for which you have searched long and hard. Will this be the day you find it online?