Scott Catalog 1990 vs 2012

I have never thought I would get rich from my collection.  You did a fair amount of work to make your chart. I mainly use catalogue values as a guide to how much I might be willing to pay for stamps. I have found that catalogue value and what people are willing to pay are usually opposite ends of the spectrum.

david

Scott prices still over state the value of the majority of stamps except for traditional dealers. The grading system was a method to prop up prices and make stamps look more like a commodity. But in the 2017 specialized, Scott notes a decline for many stamps. Of course the bottom end can be swayed by fixed costs like ebay and paypal fees.

My gripe is too many dealers follow Scott for pricing rather than having a true free market. When I see a dealer list prices at catalogue, it is not market based pricing. I prefer dealers who have some below and above based upon acquisition costs - so real business. This means Scott is propping up the market.  We know many are buying modern stamps at 40 to 50% face and then asking full catalogue (2x the face value).

Can't emphasize enough how much I agree with this.

Scott has always stated that its pricing is based on what one would expect to pay from a full-time dealer. In reality, they only use the price lists of a handful of establishment stamp dealers to set prices, and formula pricing for new issues and anything they don't have price lists for. They don't include general dealers and online-only dealers. They will look at auction prices for premium stamps, but only from a select few traditional auction houses and not the mid-level auction houses. Some countries are based only on a single dealer/pricelist. So you can see when a dealer is trying to manipulate the market by inflating the value of just a handful of issues to make them look like they are difficult to get. I've seen select issues at $100+ drop to below $10 within 1-2 years, because another person started to update the catalog pricing for that country and recognized something was "wrong".


The established dealers are feeling the pinch from online sales competition. So they are either focusing on high-end material only, or lower their prices to maintain cash flow.

Regarding the modern stamps (as well as minimum/low catalog value stamps), Scott gives the explanation that the prices are for the purchase of that specific stamp, and reflects the overhead involved. I can buy that explanation, but the reality is what you stated -- when buying in bulk or in largelots, the retail value drops significantly.

That being said, my opinion has always been that the financial value of the stamp is better reflected by its wholesale value. In other words, pretty much what a dealer would pay for the stamp. Some of you may have figured out that most dealers will offer between 3%-10% for your collection, or decline to make an offer. That's the true financial value, not the catalog.

The catalog, in my opinion, is useful for identifying the order of magnitude of a stamp value. Even VF stamps with catalog value >$1000 typically sell for <50% of catalog values! The only stamps that consistently sell at close or above catalog value are sound XF stamps of near rarity (100-500 copies), or rare stamps (<100 copies).

Of course, the true value of stamp collecting is in your personal enjoyment. Lose sight of that, then you are no longer a collector but an investor -- in which case you can usually make a better investment elsewhere.

Indeed, the brick and mortar store dealers will either have to get on the internet or close down when they retire. In the previous decade, the old-timers I knew running their stores were in the back room on their computers most of the time putting up listings, or they would close down the shop and do only internet/shows.

Regarding dealer offers for collections, it would have to be a pretty outstanding collection for a 20% offer. Most intermediate level collections will get in the 5-10%. Beginning collections will get less than 5%. I've seen dealers offer $10-$50 for collections that clearly catalog $1000+ but are comprised mostly of either common stamps or difficult to sell material. I've been told mine is supposedly an "advanced" collection, but even then I'd probably only expect 10% if my family sold it after I go to the great stamp vault in the sky. I do keep a list of all the $100+ catalog items, as that is where the dealer will up their offer or have a more accurate principal when they calculate their 10%. My collection is very disorganized, so the premium item list is rather important if I'm not around anymore.

For bulk worldwide material (1000+ mixed stamps), it's now more like 1c-3c per stamp. Only when you get into specific areas or all-different collections, does the bulk price get into the 5c-7c range. The great majority of large used WW collections that I have bought at auctions, I've paid less than 5c per stamp. But you do have to target those collections and not be swayed by "highlights" that you are not interested in. Those "highlights" may attract other buyers who will jack up the bidding, so you are better off waiting until the next auction.

A very interesting thread here. In my limited experience when trying to sell anything, I found that the price offered was all over the place in reference to catalog value. I understand the rational and reasons of the pricing system. Of course as a collector, I want to pay the lowest price possible . At the same time, I know that many sellers are trying to run a business and have a reasonable income. I have come to accept that I will most likely never get full catalogue value of anything I want to sell. I make the assumption that that value is based on an “ ideal, perfect “ example of the stamp. In most cases, I know my stamp is not in that condition. When buying on line, I try to make a reasonable, fair offer to a buyer. Worst case scenario , the offer is declined.  I have had many sussessful repeat buys and sells using this honest and respectful approach.
david