How much is my stamp collection worth – straight talk about real market values of stamps
During the weekend I bumped into a couple of very interesting conversations (and articles) about stamp market values and collection estimates. I know most collectors are interested about stamp values at some level, me included. So what’s latest story with a very simple question: how much is a stamp collection worth? Below are few very different views on the topic.
UPDATE: To get a quick (and rough) estimate/calculation of Your collection value, please follow this link: Setting a value for worldwide stamp collection.
About stamps as investment
Everybody dreams that they have a stamp collection worth big bucks. Here’s the painful truth: About 99,9% of all issued stamps are worth nothing else than they’re handling costs. Even my collection (which is about 50,000 philatelic items) is worth very little if looked as an investment.
USA Alexandria postmaster stamp, "Blue Boy cover". Sold by Feldman auction for 1 million US$.
But still, with every philatelic magazine and auction, we can read of auction results where stamps and collections are sold with selling price equivalent to a new computer, car or even apartment. This is IMO where stamp collecting has turned from hobby to investment – no casual stamp collector has or is willing to spend thousands, possibly tens or hundreds of thousands of dollars/euros just to get few stamps or single item. These stamps are bought and sold only with investment in mind.
The first interesting comment is by Geoff Anandappa, Stanley Gibbons’ investment portfolio manager. He was interviewed by Rick Morrison, Financial Post (actual story was published in StarPhoenix):
Collectors are driven by passion, whereas investors are driven by fear and greed. All these factors make stamps a very stable investment.
This is very true in a way, but also a kind of devil in disguise if thought more precisely.
If investing stamps seriously, then one doesn’t buy the common stamps, or not even the slightly better ones (worth few hundreds like Black Penny, Finnish roulettes etc early stamps). If investing, then one does acquire items worth 4-6 figures at least. This is what stamp investing programmes provide with their investment portfolio: a chance to own a small monetary share on valuable collectors/antiques items.
And here’s the contradiction. Stamp collectors want to personally own items – touch them, feel them, have them physically in their collections. Investment programs don’t provide this option… So these stamp investment programs are by investors and for investors – driven by greed of money and future expectations. My advice would be: do not touch stamps as investment if you don’t want to get burned. Afinsa scandal was just the tip of the iceberg.
About stamps as business
Another opinion for real stamp market values comes from Glen Stephens, one of the best known stamp dealers worldwide. He said recently on StampBoards discussion forum topic:
So, several times a week I end up with near worthless junk, and you need to break the news to the owner of it.
…
[Common worldwide stamps collections]…on its own is virtually unsaleable via a mail order dealership, as it is exceedingly common. And in 50 years time will still be exceedingly common – so there is little point in you holding onto it, as it takes up room and space, and attracts pests.Stamp DEALING is a business. Stamp COLLECTING is a hobby.
Huge difference. Collectors think nothing of spending a few hours fossicking and sorting and arranging. For them it is pleasure, fun and enjoyment. For me it is WORK!
Something stamp dealers dislike seeing in stamp collection: common stamps. 1973 Equatorial Guinea ships miniature sheet, Michel #Bl.54
As a small business owner (working inside ITC & marketing industry), I can relate to this. A business owner must keep the money rolling and make profit for each deal. And the most valuable asset a business owner has is time.
One of my early mentors in stamp collecting once said, that if you where ever to sell your worldwide collections, most of the stuff would end up in dealer’s junk box for 5 cents/piece. And that 5cent selling price would need to include all sellers’ expenses like storage, handling, time etc. My share of the deal would be 1-2c/piece or less.
Of course not all stamps are equally invaluable, and the larger the collection the more likely it is to contain something of more value. Thus I have developed a “general stamp collection real market value”-rule of my own: for each 10 000 different (worldwide) stamps you have, you should double the minimum value of 1 cent. For example my 50k different worldwide items collection is worth 3 100€/$ using this formula (10000×1+10000×2c+10000×4c+10000×8c+10000×16c).
So how to make most money when selling a stamp collection to a dealer? If personal time is not the not be counted, then the best practice would be breaking down a collection to bits and pieces: separate the gems from the junk. Sell the gems to dealer as single pieces and place the rest on sale as single lot on eBay or other online auction for no reserve.
About stamps as collector’s items
Stamp catalogues (like Michel)are a usefull tool for collectors, but I would not trust the catalogue values too much.
My personal take on real market values of stamps is complex. And what else could you expect from someone who has collected stamps as a hobby for over two decades.
Like most collectors, I have started by being obsessed with catalogue values. Then I have grown to realize harsh truth – catalogue values are a relative metric. Two stamps with similar catalogue value will do for 1:1 kind of trade/exchange between collectors, but very few (if none) collectors are willing to pay even one third of the catalogue price for common stamps.
Getting familiar with dealers has thought me a lot about business side of stamps (like how dealers appraise, buy and sell collections). If nothing else, it has taught that I would make a crappy stamps dealer. Just to get few new (low value) stamps for my collection I’m ready and willing to go through a messy box hoard for hours.
I simply love these small pieces of paper too much to care about time spent, profits or market values. For a collector like me, a single stamp is worth precisely how much one is willing to pay or consume other resources in order to get it. It’s that simple.
Started collcting stamps when I was a young lad,got a few albams with various themes, GB, LATE AND EARLY, BRITISH EMPIRE, THE SAME AS;-OTHER STUFF FROM OTHER COUNTRIES;-LOOSE STUFF IN A TIN BOX AND BITS AND PIECES. GRAND KIDS ARE NOT INTERSTED,TO BORING! NOW I DO PHOTOGRAPHY,EXPENSIVE! COULD DO WITH A REPLACMENT LENS, ITS KNACKED,SEEN A MINTER, SECONDHAND,OF COURSE,WHICH WILL FILL THE BILL;-NOT A CLUE AS HOW TO SELL THE STAMPS,CAN YOU HELP?
ITS ALL RELIGON TO ME? NOT A CLUE,VICAR GAVE UP ON ME SOME YEARS AGO!
Hi Bernard,
“NOT A CLUE AS HOW TO SELL THE STAMPS,CAN YOU HELP?”
The simplest option is to drop in at your local stamp dealer, show the collection and “let it go”. This way you will very likely get less money than with the alternatives (as the dealer has to make profit too), but it could not be any simpler.
The other dealer related alternative is to offer the collection/lot for auction or private sale. This way you’ll usually get (at least a bit) more than with a direct sale, but you wont get your money before the auction/sale is over.
The alternative route is to sell everything by yourself. This way you will end up with (lot) more money, but it will require you to spend some resources (especially time) as well… As how to sell… You could sell stuff online (like eBay,delcampe etc), or put a add an paper/magazine, or pick up a sales table at local market, or… It’s all up to imagination. The better you sell/market your lot, the more you get.
Hope these hints do help,
regards,
-keijo-
Hi Keijo,
For the past few I have been doing a lot of research on the topic. I have a huge collection that I have inherited from my father. The stamps are from India and also worldwide. I know that my father always used Stanley Gibbons. However, I gather from your post that this is generally used for GB & colonies. What do you suggest I do. I gather that the Scotts catalogue needs to be bought volume wise or is there any way that I can get the complete thing for a good amount.
Regards
Amit
Hi Amit,
The answer to your question about catalogues really depends on where you live, what you collect and what are youre future plans… And of course personal preferences do affect….
As your father used SG, it might be a good idea to carry on with that. Stanley Gibbons single country catalogues are highly recommendable and amongst the best of the breed (IMHO their quality is much better than Scott, sometimes – especially with GB and commonwealth countries – it even excels the otherwise superb Michel catalogues… but these are just my opinions).
PS. Your first post at thestampserver.com is very good. You’re definitely on the right track
Hi Keijo,
Thanks for your reply.
What I am interested in knowing is how to reference the stamps with the price listed in the catalogue. Is that the price that one expects in the market when one wants to sell or is this price only for reference. If I have one stamp that is listed in SG at GBP 250/- what does this mean ?
Hi Amit,
it’s mainly a reference, something that helps to compare stamp values between each other. Catalogue value and selling price have usually very little in common.
For low value stamps (say anything catalogued below 5€/$/£) catalogue value and selling price come from everything else but the stamp itself. This means things like dealers time, storage etc. Their true retail value is tenths of pennies. I think it says a lot that I just bought 1kg of off-paper stamps for 20€ (+postage 9€). Roughly speaking the box has anything between 10-100,000 stamp; even in the worst case it cost me tenths of a cent per stamp.
For better stamps (anything catalogued over 25€/$/£) catalogue prices give a somewhat accurate picture of dealers selling price. On the low end there are usually discounts (from 10-50%), on the mid range catalogue values are somewhat 1:1 for selling prices, and on the very high end catalogue values are usually notably lower than selling prices.
And above all, it’s always about condition, demand and the moment. Catalogue values are for copies in fine to very fine condition. Anything worse will sell notably lower than the catalogue value, anything superior will fetch notably higher prices. And above all, real life prices are a question of demand and supply… Is your item worth the 250 quit? If all the circumstances match. But it’s equally possible that something is/goes wrong with the markets and you end up with very little.
Hi Keijo,
Great thoughs on what a worldwide collection is worth. I’ve wondered a lot about this too. There is currently an ad in Linn’s advertising a 100,000 different collection in 37 scott international albums for $9,995. I don’t have 10K for a collection like that, but it would sure improve my stamp count a tad!
Hi Pete,
and thanks…
That kind of collection sounds like a stamp collectors “wet daydream”. LOL. .I think one could self-finance most of such purchase by selling unnecessary stamps (and albums) etc, but it would definitely require lots of time (and free money of course)… But 10K is 10K… Well, hopefully something like that is available in 18 years of time after I’ve dealt with my bank / apartment loan. LOL.
I have inherited a international junior postage stamp album from scott stamp and coin company 1924 edition. I am not looking to sell but was curious of the value it could have. it has many empty slots, but many that are filled as well. the earliest stamp i have in the book is from 1847. can you help me?
thanks!
Hi Amanda,
old stamp albums are like old encyclopedias. Themselves they have of very little value usually, unless you happen to find a collector who’s after the specific volume/title. They are nice to look at though.
For most collectors it’s the stamps (and their quality) included with the album that matters. And this is something you need to either sort out yourself or get estimated (at local stamp club/society, stamp dealer etc). As You have inherited the collection, you might want to check out if there any notes about total value (or if the collection was insured).
Hello, if you could please help, if know of a reputeable stamp appraiser in Montreal Canada, that would help. Thank-you..
Hi,
as I have no first hand experience of Montreal dealers, I’m going to recommend you to contact collectors at RPSC and ask their recommendations.
Amanda, I am assuming that the 1847 stamp of which you speak is a stamp issued by the USA. It may be the first postage stamp issued to carry a letter anywhere within the country. Or it could be a copy of that stamp from a souvenir sheet (mini sheet) issued in 1947. US stamps issued in 1847 are worth hundreds of dollars used. The 1947 souvenir copy is worth less than a dollar, new or used.