History of Auctions

GOING ONCE, GOING TWICE, SOLD! Welcome to the world of Auctions, One of the oldest processes of buying and selling in the world. It originates from the Latin word “autico” which means, to increase. The Webster’s dictionary defines auction as “public sale of the items to the highest bidder.” According to history the oldest recorded Auctions took place in Babylon in 500BC! These auctions were an annual event where women were sold for marriage, the beautiful ones would get the highest bids and the unfortunate ones had to pay a dowry to enter the bidding and thus would not fetch a good price. This was the only legal way of getting married!

Auctioning was recorded later in the Roman Empire, when after a victory the soldiers would spear the ground to mark the location of the goods and property seized. These would then be auctioned off. The Roman Empire also had most outrageous auction in 193AD when the entire Empire was put up for auction after the Emperor Pertinax was killed by the Praetorian Guard. The highest bidder was Didius Julianus but he didn’t get to enjoy his win much as he was beheaded 2 months later.

There exists evidence that many civilizations elsewhere also used the process of Auctioning. In China the Buddhist monks would auction off the property of deceased Monks to raise money to build temples.

Auctions were introduced in USA in 1600 when Pilgrims’ arrived in America. Their popularity grew during the colonization due to its ability to convert assets into cash fast and efficiently, with the sale of crops, imports, clapboard, livestock, tools, tobacco, slaves and even entire farms.

By 17th Century, auctions were gaining popularity; auctions were held in Coffee Houses and Taverns to sell art. These auctions were held daily and catalogues were printed with the articles for bid. In England the demand for auctions led to opening of the great auction houses, Sotheby’s, Christie’s and later Bonham’s.

During the American civil war, the Colonel of the division auctioned goods and property seized by the army. Thus today the auctioneer is unofficially titled "colonel".

In the 19th Century Auctions were recorded in Netherlands and Germany. The earliest recorded auction in Netherlands dates back to 1887 for the sale of fruits and vegetables. The story goes that, a farmer named Jongerling, when arrived at the harbor in North Holland, discovered a strong demand for his produce. Instead of going the traditional way of selling to a dealer, he decided to allow the buyers to compete with each other and bid for his goods. As a result he got the best price and cleared his stock in no time.

In Germany the same year a fisherman chose to auction his catch at the port and thereby rapidly getting clear of his stock and get more time to fish.

These instances in history have shaped and evolved the process of Auctions. Originating from a social norm to a past time to a vital tool in selling

Today auctions are more structured and more accessible with the latest trend in online auctions gaining popularity.