How is the hammer price of an auction lot determined?

Every lot in an auction catalogue has a starting price, but this does not mean that the coin will ultimately sell for that amount. At Provenance Auctions, the starting price represents the minimum acceptable bid and serves as the point from which bidding begins. The final hammer price is then determined by the level of interest in the lot and the bids placed by participants.

When several collectors are interested in the same coin, successive bids can raise the price according to the predetermined bidding increments. An auction result is therefore not simply a confirmation of a predetermined value: it reflects the bidding activity and market interest surrounding that particular lot at the time of the sale.

What does the starting price mean?

The starting price is the amount from which bidding on a particular lot begins. It is an important reference point in the auction process, but it should not be confused with the hammer price. Provenance Auctions defines the starting price as the minimum acceptable bid and uses predetermined bidding increments as the price rises.

If several collectors compete for the same lot, successive bids may take the price considerably above its starting level. The difference between the starting price and the final hammer price therefore depends on the bids submitted during the auction.

Pre-bidding and maximum bids

At Provenance Auctions, bidders can also participate before the live auction begins. Through platforms such as NumisBids or Biddr, a bidder can place a maximum bid, indicating the highest amount they are prepared to offer for a particular lot.

If competing bids are placed, the system automatically increases the bid up to the specified maximum. This does not mean that the full maximum amount will necessarily be reached. A maximum bid can also be exceeded by another participant during the live auction.

What happens during the live auction?

E-live bidding takes place through the Onebid platform, where participants can follow the auction in real time and place further bids on their selected lots. A maximum bid entered in advance does not guarantee that the bidder will win the lot, as another participant may submit a higher bid during the live session.

The highest bid acknowledged by the Auctioneer constitutes the winning bid. The amount of that successful bid becomes the hammer price of the lot.

Hammer price and final amount payable

It is important to distinguish between the hammer price and the total amount payable by the successful bidder. Under the current Provenance Auctions terms, the total purchase price consists of the hammer price plus a 22% buyer’s premium. An additional 2% live-bidding fee applies to purchases made through the Onebid live-auction platform. Shipping costs and, depending on the chosen payment method or circumstances, other applicable charges may also apply.

This distinction is also important when comparing previous auction results. For example, NumisBids states that its Provenance Auctions realized prices do not include the buyer’s premium, while Provenance Auctions’ own Record Prices page states that the displayed final prices do include it. It is therefore always worth checking exactly what a particular database or platform means by the price shown.

The hammer price is therefore the result of the bidding process: the starting price establishes the minimum opening point, while subsequent bids determine how far the price rises. If you own a coin, banknote or collection that you are considering selling at auction, the Provenance Auctions team can help assess the available auction options.