20 APRIL 2016 http://www.stampandcoin.co.ukStamp update
Most stamp collectors collect for
fun, pure and simple. But there is
no reason why a stamp collector
cannot have fun and maximise his
chance at making a little money
when he goes to sell. Unlike photography
or skiing, philately is one of the few hobbies
where the participant’s investment in his
pastime not only is partially conserved but in
many cases it can be increased. Going about
collecting with a view towards appreciation
does not mean that you are an investor. But
such collecting is not for everyone. Some
people choose what they wish to collect for
completely aesthetic grounds and will not be
persuaded otherwise. That is fine. But if you
want to collect in a financially clever way, here
are some things that you should know.
First, foreign new issues generally do not
go up for at least twenty years after their
issuance. There are exceptions to this rule,
but for every one, there are a thousand
sets that conform. This makes new issues a
rather bad buy from a conversation of capital
standpoint. Typically, new issues which are
bought at an average of twenty percent over
face value trade a few years later at only
twenty percent of that price. So if you need
or want these stamps, a little waiting and a
little searching can save you a great deal.
US mint stamps never go up (well almost
never). Only fifteen or twenty of the 1,
stamps issued since 1955 trade at enough
over face value now to be worth not using
as postage. True, you can always use mint
stamps to mail a letter but if you have a large
quantity or odd values (and who does not with
constantly changing postage rates), postage is
traded at discounts of from twenty to thirty
percent off face value in the trade. If you need
a single, or a plate block, or even a sheet for
your collection, go to it, but just buy one.
Do you really want to be making an interest-
free loan to the USPS which will give you a
negative yield when sold? With high interest
rates, one does not have to be an economist to
realise that the price of this folly is huge.
Another smart thing to do to increase your
chances of profiting from stamp collecting is
to avoid non-catalogue listed stamps, ‘errors’
promoted in conjunction with Omnibus
series, and stamps from places you (or anyone
else for that matter) have never heard of. Such
stamps have until now shown high initial cost
and low and difficult resale. It is possible that
someday everyone will want the serrated toothvariety or some scarce limited edition souvenir
sheet from some piece of nowhere, but until
now such buying has not seemed to have
produced many examples of economic gain.
Specially prepared first day covers and
presentation booklets of stamps with lots
of pretty pictures and interesting and
informative write-ups are nice to own. But
always remember, any modern FDC is traded
on the wholesale market for about the same
price, whether you paid $5 for it or made
your own for 29 cents.
There are quite a few other things you can
do to help maximise your chances for gain.
First, you should try to collect countries that
are relatively wealthy and have a large and
active body of collectors buying and selling
stamps. A home market is very important
and it is this reason that USA, Japanese and
European stamps have performed well over
the years.
It is important that buyers learn to evaluate
quality if they are going to have a chance
at a gain. Similar items can vary in price by
a factor of ten or more with little apparent
difference in quality to the untrained eye.
Also, collectors should learn at least the
basics of regummed, reperfing, and repairs
(our pamphlets on these are a start) in order
to be certain of what they are buying. It
helps to buy your stamps from a reputable
stamp dealer, just as quality goods are more
generally sold at a fine store rather than a
cheaper one, but this does not preclude the
responsibility of the purchaser knowing about
what he is buying.
Avoid paying high prices for varieties in
very specialised areas. Remember, it takes
two factors to create price and scarcity is
only one of them. Someone else is going to
have to want your missing fly wing variety,
or you are in trouble.
Basically, study and searching are required
to get good prices and good merchandise. But
by observing the rules, you will avoid some of
the most costly traps. Remember, though it is
not guaranteed that your stamps will increase
in value, with care and effort, you at least have
a fighting chance.John Apfelbaum has spent a lifetime learning
about stamp collecting. He runs the venerable
firm of stamp professionals Earl PL Apfelbaum, a
business that has dealt in only stamps since 1901
and which was founded by his great grandfather.
He can be reached at [email protected]Collect clever
A New South
Wales 1854-
59 8d dull
yellow-orange
imperforate
stamp was the
highlight of
the recent sale
of Australian States material at Spink.
With small to large margins and excellent
colour the fine unused stamp was
described as ‘very rare in such condition’.SOLD FOR £17,The recent Cherrystone auction in the USA
included what is thought to be a unique
‘completely imperforated’ variety of the
1981 Space Achievement miniature sheet.
The sheet showed faint horizontal punched
perforations and fetched $2,300.SOLD FOR £1,In the same Spink
sale a £
black and rose
Kangaroo stamp
with the first
watermark,
‘centred a little
to right, lovely
colours, fine
unmounted mint’
fetched £8,000.SOLD FOR
£8,A USA 1901 2c Pan-American Exposition,
with the centre inverted recently went under
the hammer at Daniel F Kelleher. Described
as a ‘handsome example’, the stamp featured
‘rich colour in flawless condition’ and is one
of only 78 examples known to exist.SOLD FOR £21,p18 Auctions - cut outs.indd 20 01/03/2016 11: