Fake Prices at Horse Auctions?

Pedigree Fanatic · Member Joined: 20 Mar 2007 Posts: 120

I wonder if anybody has an opinion on this:

Many of my friends in the horse business say that whenever you see a reallly high price at the big QH auctions* those high prices we see are being artificially escalated by owners working with friends in the crowd...in other words, people who are in cahoots with them who are sitting in the audience and bidding like crazy to get the prices to way up. If the friend wins, then the owner simply buys the horse back from him. But they are hoping a stranger will get caught up in the excitement and go along with the high prices...especially since he/she sees other people bidding high against them, and will be influenced and assume this is a normal price for that horse.

My friends who believe this is happening say that with the economy being the way it is...horses should be going for way less than they are. They say the horse we see selling for 50,000.00, for example, is really worth about 7,500...and the prices are being whipped up by these scams.

My opinion on this is that there are people out there who really and truly do buy and sell horses for high prices these days, even with the economy. I am sure the bidding schemes do happen now and then, but I think most of the time the high priced nice horses at those big sales are really and truly horses selling to new owners for those prices.

Any thoughts?

* I am not talking about the local sales barns. I am talking about the big NCHA and NRHA sales that go along with futurities and derbys.

gypsy · Yearling Joined: 23 Dec 2006 Posts: 29 Location: Arkansas

I'm sure that most of those high priced horses are really selling. I'm sure there is some funny business that goes on but not on every horse that goes through.

nrhareiner · Member Joined: 14 May 2005 Posts: 154 Location: Ohio

It will depend on what sale you are talking about. The NRHA and NCHA sales those prices are legit 99% of the time. These horse command high prices b/c of the earning potential of the horse. Not to mention that these sales are pre screened. So you are only getting the best of the best and is a good indicator of what the market will bear in stud fees and sales prices.
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Pat Mefferd · Posted: Wed Feb 18, 2009 6:19 pm Post subject:

So what else is new! Been going on ever since I started going to horse sales in 1950! Doesn't necessarily have to be AQHA...or any other breed. In the early days top notch grades, were bid up. Pat
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EAhola · Member Joined: 10 Jan 2005 Posts: 152 Location: Colorado

I'm with Pat ..... Owners will buy back their horses if they aren't doing well. Happens in all sales all the time.

So --- do you suppose that the best race horse always wins? Now that's a can of worms too. Probably why I don't bet on horses ... haha
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SCDixieGirl · Weanling Joined: 29 Oct 2008 Posts: 5

I've seen it happen plenty of times at smaller sales.