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The police usually destroy or trade in their old service pistols. I have never heard nor seen of these auctions.

I would bet that these people you hear talking are speaking of an auction held out of the trunk of a car in a back alley somewhere. :s0114:
 
I have been to auctions in Hillsboro that occasionally have guns. The vibe I get is either they were estate sales or somebody waking up one day, realizing he had stopped shooting 10 years ago, and unloaded a bunch of guns all at once. They tend to be "farm/family" guns like hunting caliber rifles, military surplus (M1, Carcano, etc.) or shotguns. Sometimes handguns, usually revolvers. Some of the old timers will have a quality .22 pistol if they used to shoot for food. The interesting thing is the prices are almost always bizarre. Some go for half or less what I think they should. Others go for 10 times my best guess. Price is in the eye of the beholder and an auction is true market forces at work.
Here's the site Estate Sales Unlimited. The preview each Thursday on the web is pretty complete. Auctions can make for some entertaining people watching too.
For only doing a few guns, their paperwork is standard gunshop. Antiques are cash and carry, moderns can be fast or slow depending on $10 background and out of state is typical hassle.

This is the kind of place where your widow will take your entire reloading bench in a box, so designate a friend now if you don't want that to happen.
 
O'Gallerie in Portland will very often conduct an estate sale in which there are firearms offered. Since these are more often than not "estates" in every sense of the word (belongings of dead rich people), the five dollar Glock would be a rarity in such a sale, but fine quality hunting guns and collectables are more the norm. I once purchased a Single Action Colt there that was marked "New York Police Department", and was traceable to the exact time period Teddy Roosevelt was Police Commissioner there! Of course, you must fully disclose your name and such as a buyer, (all written down), and adhere to the gun regs for the Forbidden City.
 

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