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7nomads
18th May 2008, 21:07
Took my kids to a coin auction for kids today. They and the other 30+ children were given $20 of auction money to bid on about a 100 sets of coins. Coin Sets ranged from 10 early wheat pennys to a Morgan Dollar. I put the value of all 100 sets at a minumum of $1000. At the start of the auction there was about $700 in circulation. The starting bids were about 2/3 of what the early items might sell for in FRNs. An example was two nice walking halves selling for $15 in auction money.

Then something very unexpected happened. About a third of the way into the auction, the auctioneers says we're going to have a payday and every child was given another $20. Kids were real happy as they had more money, but the prices went up accordingly. Now there was $1200 dollars to $700 worth of coins. Bids literally doubled.

Just over half way through the auction another $20 were given the kids. So with less than half the number of items to bid on, kids were holding a lot more money. A Morgan now sold for $60 and the last 20 lots were bought by kids calling out how much money they held in their hands. The realization that all that "auction money" would very soon be worthless.

Then it was over the last lot of 13 or so buffalo nickels was sold for over $25. Many kids were still holding over $20 with nothing else to buy. (Everyone child was able to get one or two items).

Will it be any different with us adults? What did you do with that last check the govt. sent out?

Final thanks to the dealer and guys that put that auction on for the kids.

Richard
18th May 2008, 23:05
Well, that certainly was an educational experience for them! And they picked up on it so fast, too! :)

Drumblebum
19th May 2008, 10:04
Well, that certainly was an educational experience for them! And they picked up on it so fast, too! :)

Kids can be surprisingly un-stupid...;)

waynetheking
20th May 2008, 21:43
we need to teach our kids more about money and how to handle it! I'm glad you took ur kids there!!....and a point well made drumblebum!!

My Pants Are Cold
22nd May 2008, 18:53
What did you do with that last check the govt. sent out?



Paid off CC. ;-)

Trevallion
26th May 2008, 16:58
Wow! That's a great lesson and illustration. Thanks for sharing that experience.

JesterJay
26th May 2008, 19:09
The kids AND the CC.
JesterJay



Wow! That's a great lesson and illustration. Thanks for sharing that experience.